Reddit user calls someone a squatter for listing a domain name for sale for $3,495

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It never ceases to amaze me when people call a domain name owner a squatter just because they own a domain name. Here’s the title of the post on reddit.com/r/Domains:

‘Telepathy.com’ is squatting on a domain I’d like. Any advice on how to try to deal with them, without getting ripped off or over-paying? (it’s the domain of a dead company I once worked for — I’d like it for fun, not profit) (Source – reddit.com/r/Domains)

It’s like getting mad at someone when you drive down the street, find the “perfect” house, and then realize – someone else owns the house, but they’re not living there, it’s investment property. Could you imagine calling the owner a squatter because they bought investment property? Yes, it’s 2017 and people have been buying digital real estate for more than 20 years now and they’re not all squatters. Last week Lola.com sold for $550,000 and yesterday NOM.com sold for $86,500 (Source DNJournal) and that’s just two of hundreds of domains that sold over the last week.

Given how many domain names sell in the five and six-figure range asking how to not get “ripped off” when a domain name is listed at $3,495 seems a little silly. Now “squatting” is a real thing, there are Cybersquatters and if you have a trademark and someone’s sitting on it, squatting on your name, there are legal processes to get it called a UDRP.

It’s always frustrating to see people call legitimate investors squatters. In April of this year, serial entrepreneur Jason Calacanis sold 20.com for $1.75M. Was he a squatter? Heck it only costs $10 to register a .COM domain name…should he have sold it to someone for $10 since he wasn’t using it? Crickets. Yeah, it’s a double standard. People can see well known entrepreneurs and investors sell domain names and consider them investors, but anyone else who owns a domain name as an investment…they’re a squatter?

To me this really shows just how early we still are in the world of domain names. As we evolve, I just hope people start to learn the real difference between a squatter and an investor, because the two really couldn’t be more different.

{ 11 comments… add one }

  • Joseph Peterson June 16, 2017, 12:23 am

    Well said.

    Reply
  • Mark June 16, 2017, 1:10 am

    Some people just don’t have a clue and a runny mouth too. 🙂

    Reply
    • Joseph Peterson June 16, 2017, 2:35 am

      “Runny Mouth” … nice phrase. Reg’d the .COM just now. Low odds of resale. Still … Might make a good title for a book or a standup comedy show. Plenty of loudmouths proud to the point of branding themselves for not knowing when to shut up.

      Reply
  • Dn Ebook June 16, 2017, 1:11 am

    The thing is a domain like that would be highly desirable to many folk, surely most people could figure out that’s why a monetary value is attributed to it, sounds like sour grapes

    Reply
  • Andrew Hyde June 16, 2017, 7:47 am

    Great analogy with the real estate example. If Telepathy.com is available for 3,495 buy it now before they have a second thought. That would be like finding a empty lot for a couple of hundred bucks per acre when land adjacent is selling for thousands per square foot.

    Reply
  • Morgan June 16, 2017, 7:55 am

    Just to make sure there’s no confusion…it’s not Telepathy.com that the Reddit user wanted to buy, they are the owner. Telepathy.com is a domain name company run by Nat Cohen, an industry veteran and one of the nicest guys you’ll ever meet 🙂

    Reply
  • Eric Lyon June 16, 2017, 9:27 am

    As you stated already, the industry is still young and many people don’t really understand it yet. There are comparisons to real estate, stocks, used car sales, and even fishing floating around out there. There’s also a lot of misinformation from random blogs spinning and reimagining the industry in ways that aren’t very logical and reaching audiences through search results after heavy SEM/SEO campaigning. It just goes to show that not all content on page one of Google is accurate and it’s truly starting to distort the impressions people get regarding our industry.

    Reply
  • Eric June 16, 2017, 11:41 am

    The real estate analogy doesn’t really hold up. First off, domains are more akin to land not real estate. The real estate is the website behind the domain. Secondly, in real estate the yearly taxes are based on the value of the real estate. There is no such thing as a “flat fee” tax that applies to ALL restate. Whereas, all .com domains regardless of their value have the same renewal fee. Imagine a $1 million dollar property having the same property tax amount as a $100,000 property. It would NEVER happen. Yet, you have domainers selling domains for $500,000 paying the same puny $15 renewal fees as someone selling a domain for $50. Don’t get me started on the cost to maintain real estate. Domainers know they are taking advantage of a broken system and that’s why they get so upset when someone calls them out.

    Reply
  • Nick June 16, 2017, 2:46 pm

    I would like to know – is the person who said we really do not own names but are merely renting them from the registrar, and have no business selling them, correct?

    Reply
  • Nick June 16, 2017, 3:16 pm

    I once had someone call me a squatter and continued to do so even after I told them I was using the domain for email purposes. They liked to use choice expletives too. Really made their case even stronger.

    Reply
  • .com June 16, 2017, 3:41 pm

    Has this guy heard of private property? Like multiple car owners are squatters of the cars they don’t use? Let’s file a UDRP on just about everyone. Yes there are indeed squatters of trademarked unique names that have been developed from scratch like Google or Facebook but Telepathy is not so clearcut.

    Reply

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