discuss Some people just don't know what to do with their money

[infosec3]

One of the reasons why selling domain names works is that there is a considerable number or people who are not afraid of virtually throwing away thousands of dollars for a name for which they do not have concrete plans.

About a year and a half ago I sold a name for $4,000 to an end-user. The name is still parked.

About two years ago I sold another name to a different end-users for $2500. The name apparently dropped and is now being used by someone else.

About four years ago I sold another name to the president of a company for $1500. The name still has the landing page it had when it was under my control, since he kept the same name servers.

I guess many of you have had a similar experience.

 

[jamesosix]

TBF some people have more money than common sense.

 

[Name Trader]

Yep. I've had similar experiences to @infosec3 for sure. I wouldn't say it's commonplace. But it happens. There could also be legitimate reasons for this, also.

I sold 1 domain for approx $1300. The domain dropped at renewal time. I picked it up, with a handreg. I sold it to somebody else within about 6 months for another $1300

 

[Haris]

Good for us. lol

 

[mad409]

I think anyone spending that kind of money for your names has a reason but you don't know, will never know the circumstance after the sale.

 

[frank-germany]

plans may change

 

[pfj]

I purchased a domain name three or so years back for a side project I was developing. Almost immediately after purchasing the name, I got incredibly busy with a large piece of consultancy work that I had not expected to take up nearly so much of my time. About six months ago I was able to pick up work on this project again, and realised (as in the example you quoted) that the name servers hadn't been changed and it was still pointing to a holding page. Priorities change, and what might seem a waste of money to you may represent a strategic decision on the part of someone else.

Another example of my own - there was a name I wanted to acquire. It was dormant, and held by a large company as a result of them acquiring a smaller business several years prior - they'd rebranded the company they had acquired, and so the name I was interested in was just sitting. There were no active trademarks, nothing. I emailed the domain administrator and got a response from him that said "We do not enter into negotiations to sell domain names that we control. Please note that this name is registered until [date - about 5 months ahead] and it is our policy to renew the registration of our names on a regular basis." About 4 months later, I got an email out of the blue from him saying "Hi there, I just wanted to reiterate the information I previously sent: we do not enter into negotiations to sell domain names that we control." That was it. Shortly after, the name dropped and I picked it up.

I'm 99% certain the guy quietly let it drop because he knew I wanted it and he knew they weren't going to use it - but he couldn't sell it to me. This was a big company, they had dozens of domain names they used, so I very much doubt that letting this one drop was accidental.

I am also personally aware of situations where a company acquired several domain names that they thought would work for the brand of a particular product and then did focus groups with users to determine the best one to use. In those circumstances, spending several thousand dollars on acquiring several name that was never used was just part of the product development/market research budget.

 

[kemjika11]

But are you really wasting your money if you "intended" to use a domain and spent $4,000 when you might have millions of dollars at your disposal? To us it seems like a waste (how ironic since thats how our biz thrives-- people spending their money on domain names irrespective of what they do with it) but to others maybe it isnt a waste.

 

[infosec3]

But are you really wasting your money if you "intended" to use a domain and spent $4,000 when you might have millions of dollars at your disposal? To us it seems like a waste (how ironic since thats how our biz thrives-- people spending their money on domain names irrespective of what they do with it) but to others maybe it isnt a waste.

We actually agree. My initial statement is a hyperbolic way of saying some people are ready to spend money. But you and others are totally right that people may have had plans we can't know about when they bought the domain.

 

[NetworkPearl]

Very few have ,mso far as most of the names I sell are via outbound efforts and the buyers know what to do with it.

 

[LaunchUp.com]

1. Some buyers are impulsive!
2. It can take a while to really come up with the right name for your brand. In that process you may come across names that feel like love at first site. You buy the name and maybe days or weeks later you realized you made a mistake.
3. If someone is working for a company, plans can change and the name may no longer be needed or be the best fit.

Those are my three guesses....

 

[baseballworld]

Some really don't care but then there is the flip side of the coin. The ones who do care and then the selling begins to convince them why they need it and how it will benefit them.