Domain Speculation Ethics

[pertosda]

Hi,

I just start this thread because I have written a post in my internet&technology weblog about domain speculation and it has generated several negative comments.

Some of my visitors have said I should be ashamed of participating in such kind of business, that I've got a cheek and that I should feel a guilty conscience, comparing it to real-state speculation.

I had never thought of this until now, but I still think there is nothing wrong with it, as long as one doesnt do cybersquatting.

But how can I explain this to people with such a negative attitude towards the domain business?

Any comments welcome.

 

[armstrong]

Some of my visitors have said I should be ashamed of participating in such kind of business, that I've got a cheek and that I should feel a guilty conscience, comparing it to real-state speculation.

Man, those Indians who sold Manhattan for a couple of beads were really screwed, no?

 

[Ron Jackson]

I told you not to go around wearing your black cape on domain forums, duke. Because of you, people think domainers are vampires 8-X

I guess you are right. I used a wide shot so they wouldn't see the fangs but the cape gave me away.

These are some of the arguments these "attacking" guys commented:

"You try to make money without producing any extra value". (This guy even calls me "bloodsucker").

This is a completely bogus argument. Why do people work? To produce value for themselves and their families (and as a byproduct for their local community, state and national governments who tax their earnings). You can do that by spending years, as many of us have, learning the value of a commodity inside and out, then purchasing those assets that the uneducated have not recognized. Tell your critics that perhaps they should produce some value themselves by getting up off their lazy asses and doing some research work, rather than expecting others to do it for them, then hand them the assets at the bargain prices they were too stupid to recognize in the first place!

Another thing that frosts me about these people is they are insinuating that you are somehow preventing them from getting a domain name and going on the Internet which is total nonsense. There are an infinite number of domains that anyone can get for a reg fee. However there are a very limited number of high value domains. Like any other product, if you want the high value model you have to pay for it. You can't walk on a Mercedes lot and get a car for a Hyundai price. It's not your fault that they haven't bothered to learn the difference. If you want to apologize for something tell them you are sorry they are so uneducated!

 

[faisj]

There is supposed to be something wrong with real estate speculation? Your visitors who say things like this are so incredibly naive they really should not be allowed out of the house without adult supervision. I usually ignore people who are this clueless but I got an email from one this week that was so remarkably silly I couldn't keep myself from responding.

Her note to me:

"I totally disagree with the ethics of selling domain names second hand. This defies the whole meaning of Internet--a tool putting power and possibilities back in the hands of individuals. I feel as though you are high-jacking these possibilities and holding them for ransom.

The domain that I am looking for (*******.info) is not popular or hunted, which would make it's value no more than what you have paid for it since September 2003 at enom.com--a total of $86.85.

But I don't want to purchase it from you. If you decide to voluntarily release the name upon expiration next fall, please let me know so that I can purchase it fair and square from my domain registrar, godaddy.com.

Sincerely,

Moron F. Moron
Moronville
(names changed to protect the innocent)

My response:

Dear Moron (I actually used her real name though this apellation would have been more appropriate):

I disagree with the ethics of people selling land. I believe that God made the earth for everyone. My neighbors own a vacant lot between our houses that I would like to have and it has a current market value of $100,000. Their cost is nowhere near that - in fact their parents donated the lot to them. So I offered them $1,000 for it which would be all profit for them. They had the nerve to turn me down!

Regardless of what you so naively think, good domains are highly valued and those who have paid for particular names have full ownership rights to them (and just for your information, I have purchased many names from previous owners for far more than registration fees). I think it is incredibly arrogant of you to think you should have someone else's property for less than it is worth simply because you want it. To me that is completety disgusting. And what makes you think you have the right to decide the meaning of the internet?

Also, just for your information, if I did let this domain expire (which I will not) you would have absolutely no chance of registering it at GoDaddy or anywhere else. Hundreds of other investors who understand the value of the domain would use professional drop catching services to go after the domain and it would be registered within a split second of the time it expires. That is 100% gauranteed.

I doubt that you are interested in learning anything since your mind is already made up and you clearly think you know what is best for everyone else. But if you want to do a little research, here is what similar new extension domains have already sold for this year: http://www.dnjournal.com/archive/domainsales/2005-3Q-expanded-newtld.htm .

Great reply...

Did she e-mail you back?

 

[wow!]

Maybe you'll try to sell her Moron.com

 

[AdoptableDomains]

The original thread title is "ethics". It is not unethical to purchase anything for speculative value, whether it be domains, land, stocks, futures, antiques, baseball cards, or anything else legal. Unfortunately, there are people who DO cross the line and register tradenames, use inside information on upcoming products, and go beyond the "fair use" issue and put ethics aside. Martha stewart did that with stocks, and crossed the lin in another industry. Unfortunately, it's so much easier and cheaper to do it in this industry than most others. Somewhere along the line, we all get pigeonholed with the unethical domainers and get a bad rap.

There will always be people who want everything handed to them on a silver platter without the work. One wants a particular domain at reg fee instead of market value, another may want a Honus Wagner Baseball card for the price of a pack of gum, or a valuable antique coin for face value. There's nothing we can do about the idiot who thinks the world should take them to raise. All we can do is act in a manner that reasonable people understand and an open market will bear. The idiots will eventually lay in the holes they dig, and rarely come to see how a real market works.

I've had some people make low ball offers to me saying I should accept their number as fair. I've never changed their mind, but I have tought them a lesson or two in negotiation. You can't insult someone into giving you a good deal. The more unreasonable they get, the higher my price gets for dealing with their attitude.

One possible solution: The domain is only $10, My consulting and finders fee is much higher, and they are only sold as a package.

 

[mf]

In a socialist economy, everything belongs to the "people" and speculation is not allowed.

But we live in a capitalist economy so no one cares if someone still thinks that way.

Maybe they should go live in North Korea or something to learn what they are trying to get themselves into.

 

[pastaboy]

Misguided fools. We're all here to make a bit of extra cash and i would compare it to any type of business. We risk our money to make money and whats wrong with that? I applaud these guys and girls who have the foresight and knowledge to buy a name and sell it on to an end user who will quickly reclaim their fee and make money. Its like buying stocks and shares or private number plates with peoples initials. No one is forcing them to buy them off you. Beauty is in the eye of the beholder as they say. www.ifeelnoguilt.com :hehe:

There is supposed to be something wrong with real estate speculation? Your visitors who say things like this are so incredibly naive they really should not be allowed out of the house without adult supervision. I usually ignore people who are this clueless but I got an email from one this week that was so remarkably silly I couldn't keep myself from responding.

Her note to me:

"I totally disagree with the ethics of selling domain names second hand. This defies the whole meaning of Internet--a tool putting power and possibilities back in the hands of individuals. I feel as though you are high-jacking these possibilities and holding them for ransom.

The domain that I am looking for (*******.info) is not popular or hunted, which would make it's value no more than what you have paid for it since September 2003 at enom.com--a total of $86.85.

But I don't want to purchase it from you. If you decide to voluntarily release the name upon expiration next fall, please let me know so that I can purchase it fair and square from my domain registrar, godaddy.com.

Sincerely,

Moron F. Moron
Moronville
(names changed to protect the innocent)

My response:

Dear Moron (I actually used her real name though this apellation would have been more appropriate):

I disagree with the ethics of people selling land. I believe that God made the earth for everyone. My neighbors own a vacant lot between our houses that I would like to have and it has a current market value of $100,000. Their cost is nowhere near that - in fact their parents donated the lot to them. So I offered them $1,000 for it which would be all profit for them. They had the nerve to turn me down!

Regardless of what you so naively think, good domains are highly valued and those who have paid for particular names have full ownership rights to them (and just for your information, I have purchased many names from previous owners for far more than registration fees). I think it is incredibly arrogant of you to think you should have someone else's property for less than it is worth simply because you want it. To me that is completety disgusting. And what makes you think you have the right to decide the meaning of the internet?

Also, just for your information, if I did let this domain expire (which I will not) you would have absolutely no chance of registering it at GoDaddy or anywhere else. Hundreds of other investors who understand the value of the domain would use professional drop catching services to go after the domain and it would be registered within a split second of the time it expires. That is 100% gauranteed.

I doubt that you are interested in learning anything since your mind is already made up and you clearly think you know what is best for everyone else. But if you want to do a little research, here is what similar new extension domains have already sold for this year: http://www.dnjournal.com/archive/domainsales/2005-3Q-expanded-newtld.htm .

lol. Love that reply. I went to a jewellers and offered them $5 for a 18ct diamond, i mean after all they only found in the earth...

 

[barefoottech]

In a socialist economy, everything belongs to the "people" and speculation is not allowed.

But we live in a capitalist economy so no one cares if someone still thinks that way.

Maybe they should go live in North Korea or something to learn what they are trying to get themselves into.

BTW ,it is not only Socialist Countries .
Australia prohibits all Speculation for .AU NameSpace names