Name Squatting

[cw1865]

I recently put out an inquiry to a domain that is currently registered under a private registration. The actual domain name is simply parked with no contact information on it, so I had no alternative but to see the Who Is record. In any case, he's asking 6 figures for the domain name which to be frank isn't worth the price even if the site is developed and selling.

At present, he's just squatting on the domain (and has every right to), but at some point in time he probably told his registrant that he wouldn't even entertain any offers less than 6 figures. I'd give the guy 10K+ for the domain, but I can't get an offer through to him. Is there any way around the privacy registrations?

[kgun]

1. No comments. I read the post yesterday, but do not.
2. Know the concept "Name Squatting". Please explain.
3. General remark: How do you value a company or a web site?

[gwhite]

you might do a search on Sedo and some of the other big name auction/for sale sites and see if he has it listed there. With Sedo you can make an offer on any site listed.

[cw1865]

Originally Posted by kgun

1. No comments. I read the post yesterday, but do not.
2. Know the concept "Name Squatting". Please explain.
3. General remark: How do you value a company or a web site?

Checked out SEDO and the .net version of the domain is listed but not the .com

In its most malicious form, I think you have heard of it. Say you take the name 'cnnnew' or 'bbcnews' or something like that and you're hoping to trade off of CNN's / BBC's trademark, that would be squatting. In this case, I have no legal recourse to the name, it does not violate a trademark or anything like that, the term is generic - 'briefcases' - but whoever has it isn't doing anything with it, its just sitting in a parked mode with adsense ads on it.

In this case, the domain name is intellectual property in virtually its purest form (I doubt this thing is getting any serious traffic).

Internally, I don't have much time to value it. I go to my adsense account and I see how much estimated traffic is expected to be generated from an adsense ad for the term briefcases in the US market. Google says 227-300 hits per day. I take that number and I multiply by a DISCOUNTED conversion rate of .75%. So, at worst I am looking at 1-3 sales per day off of this thing.

Problem is that for what he's asking, you would think that you were buying a stand alone business that already had sales, already had goodwill, etc.

At the end of the day though, his price is his price, he can ask whatever he wants for it. I'm just annoyed because he has it set up in a way that I can't negotiate with them.

[kgun]

Yes, there may still be great value in the name, espeically if you own "abcd.com" and the "abcd" company does not exist today, but in some years.

I think I once heard an estimate that 50 % of the companies that will exist in 20 years do not exist today.

If you want to buy a domain name, the intrinsic value of that name (brand), must be incorporated into the present value calculation.

Example:

1881 dot no is a very important site here. (1881 a very important telephone number).

A person I know had required a similar name (related to a comany's telephone number) and recently won a case in court (so long?).

Dot as is very important here too. AS = Short for Ltd. = Short for ASia. AS domains have to be required for at least 2 years as far as I know.

So what would be the case if you ordered

MultiFinanceIT dot as

and I have owned the dot com version for some years?

Is that Name Squatting?

[alexsimon]

Originally Posted by cw1865

I recently put out an inquiry to a domain that is currently registered under a private registration. The actual domain name is simply parked with no contact information on it, so I had no alternative but to see the Who Is record. In any case, he's asking 6 figures for the domain name which to be frank isn't worth the price even if the site is developed and selling.

At present, he's just squatting on the domain (and has every right to), but at some point in time he probably told his registrant that he wouldn't even entertain any offers less than 6 figures. I'd give the guy 10K+ for the domain, but I can't get an offer through to him. Is there any way around the privacy registrations?

I think you should read what squatting is, and what not.

If you have a trademark on the name, file a UDRP.

If not, did you know that some domains make 5 figures a month just from parking revenue? Is that squatting? Why put up a site, when the name makes profit.

For whatever reason people instead of searching for a word type that word.com in their browser.

On another hand if he would have asked $x.xxx he would not be a squatter, because his expectation is not exaggerated? Domains are like property, would you call a person who buys land a landsquatter just because he does not use that land (build houses on it?). I guess no.

[kgun]

Originally Posted by alexsimon

If not, did you know that some domains make 5 figures a month just from parking revenue? Is that squatting? Why put up a site, when the name makes profit.

Do you have proof of this?

[alexsimon]

Originally Posted by kgun

Do you have proof of this?

They are not mine.

But if you read domain forums, you will know that some do. I am not a webmaster but a domainer, and premium domains make that much. For example poker.com makes $4000 - $5000 a day from what I heard, that is why it got an 8 figure offer to buy.

[kgun]

That means more valuable than business.com that was bought for USD 10 million some years ago.

[alexsimon]

Originally Posted by kgun

That means more valuable than business.com that was bought for USD 10 million some years ago.

Business.com was bought for $7 millions, and resold with the site for more than 300 millions.

And yes, Poker.com got a $17 million bid but it was not sold for that at the Moniker auction. Sex.com sold though for 12 millions and last year Computer.com for $2.1 million.

This year's highest sale was iReport.com for $750k, but it was not because of the type in traffic.

[cw1865]

You didn't read what I wrote, I flat out said that the owner has a legal right to the name. From a pure traffic point of view, the domain is probably worth $1-3,000.00 TOPS and I bought a domain for $2,500 that had twice the traffic potential. The only reason why I would give more is because I can actually sell product off of it which by definition is always going to be a more valuable use. The problem here is that this owner registered this domain a while ago and has simply put himself in a position where he can't receive offers (is receiving offers via e-mail really that bothersome that he or she just couldn't delete the e-mail?). I assure you if he were to take my $ it would make more money in a lousy 3.5% bank account than he's making off that parked domain.

[kgun]

Originally Posted by cw1865

The problem here is that this owner registered this domain a while ago and has simply put himself in a position where he can't receive offers (is receiving offers via e-mail really that bothersome that he or she just couldn't delete the e-mail?).

My bolding. I have got such offers via email myself buying one of my sites, and I can only speak for myself, but I would not take such an offer serious. May be I am too strict.

Originally Posted by cw1865

I assure you if he were to take my $ it would make more money in a lousy 3.5% bank account than he's making off that parked domain.

(S)He may of course use another valuation model. There may also be emotions involved. My former director in the Central Bank of Norway once said. "You must never sell your soul".

I found this BannersGoMLM.com . . . And It's All FREE! short story today.

Cheating is not a game or contest... it's stealing!

I am still a little confused about the meaning of the word.

[cw1865]

which word? Squatting?

The word 'squatters' usually refers to people who take up residence on property that they do not own or rent, ie. they're squatting. This really can only happen when an owner isn't around watching things. Typically when a dispute arises, an owner has all but abandoned the property, the squatters take residence and wind up making improvements. When the owner comes back, the dispute as to ownership arises.

On the internet strictly speaking 'domain squatting' is just somebody taking a name and hoping that the corporation that owns the trademark wants the name. Great example would be volkswagen.com - if I took the name prior to VW registering it and VW went to register the name, they would find that I own it.

In this case, I DO NOT OWN a trademark (its a generic term), so he's not 'squatting' on my rights, but the owner has definitely registered a name and doesn't seem to be doing anything particularly useful with it (parked domain).

Its alright though, its just annoying because I can't talk to the owner.....I'll live....

[kgun]

Originally Posted by cw1865

which word? Squatting?

I am too tired. I have worked 13 hour's without rest.

Originally Posted by cw1865

The word 'squatters' usually refers to people who take up residence on property that they do not own or rent, ie. they're squatting. This really can only happen when an owner isn't around watching things. Typically when a dispute arises, an owner has all but abandoned the property, the squatters take residence and wind up making improvements. When the owner comes back, the dispute as to ownership arises.

On the internet strictly speaking 'domain squatting' is just somebody taking a name and hoping that the corporation that owns the trademark wants the name. Great example would be volkswagen.com - if I took the name prior to VW registering it and VW went to register the name, they would find that I own it.

In this case, I DO NOT OWN a trademark (its a generic term), so he's not 'squatting' on my rights, but the owner has definitely registered a name and doesn't seem to be doing anything particularly useful with it (parked domain).

Its alright though, its just annoying because I can't talk to the owner.....I'll live....

That was a more precise explanation.

[cw1865]

Don't feel bad, I just completed the back end of an I-95 Florida road trip and now I have to catch up on everything that DIDN'T HAPPEN in my absence.....(while the cat's away....)

go to bed....