Domainers Guilt

http://fishrhubarb.com/how-to-strike-paydirt-with-domain-names/

A non-domainer formerly predisposed to disdain those profit without value domainer types, becomes the disdained. I stumbled onto this guy's blog before when he wrote:

"How did I end up with 13 registered domain names? I certainly hope collecting domain names is not becoming an obsession. Am I entering the ranks of the domainers so many have come to despise?"

Spoken like a converting Slashdotter ;) .. So a month passes and our reluctant hero is up to 43 domains and out getting appraisals for his expanding flock... the appraisals come back at $200 a name or so (which is terrific for names registered yesterday at $10) but one .mobi name he registered has apparently been valued between $9,680.00 and $25,168.00!  The name is probably not worth that, but his reaction is priceless:

"Whoa Nelly!! ...  It does bother me somewhat that I could potentially profit in a very big way without actually creating anything of value.  I had planned to use the domain in question for a niche site, but if  I happen to strike paydirt, I’ll be taking the money."

They always take the money. I had a neighbor growing up with passionate dislike for state-run lotteries and sweepstakes.. the "tools of the devil", "degenerate gamblers", etc. Years later, his wife won $100,000 at competitive bingo (a habit picked up in church I presume) and they kept the money. They bought a Winnebago if memory serves. :)

At the risk of mixing philosophy and economics (never good after a big lunch) .. Our reluctant domaining friend actually has created something of value. The fact he didn't have to spend twenty years in a coal mine to achieve this windfall is a moot point. Nobody gives the miners extra credit for time spent underground. If they could bring twenty years worth of coal up in one day they'd get paid for it.

Domaining is really the Internet productivity miracle in hyper-drive. This individual used his creative talent and a computer to conjure up desirable domain names that have the ability to draw other people to them. The Internet productivity miracle allowed him to do research that would have taken 10 traditional researchers a month. He exposed himself to financial risk by paying the registration price to secure these names for himself. If this chap had poor domaining ability, he would have chosen terrible names and nobody in the world would care or say a thing. He only feels sheepish or obligated to justify his registrations because others might want what he has.. and that is just silly.

Can you imagine Donald Trump or the Irvine Corporation in California justifying their land purchases? "I had money, the land was close to the city and water so I bought it!"  End of story. Domains are different how? Want to buy radio/tv station KTLA? That will be 5 billion. You could have started the station yourself in 1918 for the grubstake of securing the airwaves. Never try to defend or apologize for something you don't have to. Generic domain names were (and still are) available to anyone on a first come first served basis. If you get there first, then lucky-you.

Good luck to this gent and all others trying to make their way in this space.  There is still time to succeed.

Comments

[RonJackson]

Every word of this post is right on the money Frank. I've never figured out why people are supposed to apologize for having great vision, a willingness to risk their money (sometimes ALL of their money) on that vision and the persistence to keep plugging away, often in the face of constant unjustified criticism, to earn a return on their investment. The idea that they are providing nothing of value is an insult that you don't see hurled at investors in other asset classes. The sellers have done the spadework others were unwilling or unqualified (having not done the necessary market research)to do. The buyers lined up around the block for high quality domains would not be putting their money on the line if the assets had no value to them. People gladly pay finder's fees for all manner or goods and services, so why wouldn't they pay it for quality assets that have perfomed as well as domains have? Things are really out of whack when a guy like this has to feel guilty about using his intuition and skills to make wise investments.

[Bill Henson]

I've seen this kind of guilt reaction before. It might help those folks recover more quickly if there was a pennance system in place. Let them know that if they register 5 .mobi's, they can take off like a big bird.

[AhmedF]

No no - no comparisons to land please. For land, you are forced to pay property tax. It is incentive to develop empty into something (even just a parking lot). Domains do not have that issue.

I do agree with never having to apologize.

***FS*** Your property tax are your renewal fees.. Do you know what the property taxes are on long held California properties relative to their valuations? About the same as domains and renewal fees (portfolio basis). Also I gave you a tv/radio airwave analogy too ;)

[KingFish]

Thanks for this post. I am a Canadian - aren't we supposed to apologize for our successes? :)

***FS*** No, that's the British ;) *jk* .. propers to my British friends who will force me to buy them beer for that remark .. shortly.

[Steve Morsa]

...an' as for .mobi...well; we all know what happened to "Mobi" Dick when he tried to swallow "Dotcom" Jonah...yup...barfed him right back out...and later died...

Poor, poor (dot) Mobi...we hardly knew thee...

[Steve Morsa]

ps Reminds me of the limousine liberals (ie the Kennedys)...feeling oh so guilty over their "our parents/grandparents gave it all to us" wealth...who; since they and their families are financially set for life thanks to nothing they did (tho' I don't begrudge them for being "born lucky")...are only too happy to relieve their misplaced and illogical guilt by taking (via ever higher taxes, fees, etc) from those who can, will, and do...and giving to those who can't, won't, and don't.

***FS*** true true sir.

[John C]

Apologise for our successes???

No, no. It's Wimbledon - we'll be basking in our glorious failures !

[Dan]

Just "dare" to say NO! to "Domainers Guilt!"

Generic domain domainers...anyway...LOL

Peace,
Dan

[David V]

Ditto on your remarks Frank. The only thing one might be justified to feel guilty for, would be if one was to achieve success by destroying and stepping on others. But, working smart, making smart investments, learning how to use the brain and not just the "muscle" (labor), is a great personal achievement. (at least for me, I can't speak for others) There is no justification needed, no explanation, no excuses, especially to "others", Even an accidental smart investment. I personally will never (don't want to) understand anyone who ever feels the need to justify actions to others, unless it affects other people. So kudos to you Frank, and keep "being" smart (but not too smart, like charging us to read your blog), and we can all learn to invest smarter and make tons and tons of moola! :))

[Robert]

The tonys montanas of the worl no apologice. nevuh!

[Snoopy]

"The fact he didn't have to spend twenty years in a coal mine to achieve this windfall is a moot point. Nobody gives the miners extra credit for time spent underground."

I think a lot people hold themselves back with this type of thinking, meanwhile the guy who owns the company gets rich off their toil. Good post.

[Shmuel]

domainersguilt.com is available

[Tim Cohn]

Amen!

[carlton]

Capitalism in general gets a bad rap. I don't believe money is the root of all evil. The evil perhaps one's reliance on any means to achieve an end, money or otherwise. Money is often nothing more than a representation of freedom.

You write: "I had money, the land was close to the city and water so I bought it!" End of story. Domains are different how?

Well put .. and case closed.

[David Wrixon]

Don't know why we are even having this discussion.

If you create new intellectual property rather than stealing it from others, you have a right to use or sell it to make money. If you infringe the rights of others then it is not surprising if you run into difficulties, and you have every right to feel guilty.

The gripers only issue is often only that you have done what he would do, only you did it first and there are no prizes for second place.

[Martin]

This Friday may signal the death of the .mobi domain as the iPhone brings a full-fledged browser to a phone. Early reviews indicate that the mobile browsers we've been forced to use are junk compared to the Safari experience...
I don't buy those domains but if I did I might be looking to dump them