Why is Domaining so Misunderstood – Part 2

Okay – so I just received another email and had to share it with all of you. This is not necessarily to poke fun at the rather abrasive individual sending me these emails but instead to show how little is known about our industry. In this case he considers selling any domain for more than $10 to be scamming someone. Read below, and while you may chuckle, it still shows just how far we have to go! Let’s do more to let people know about our industry because ignorance in this case has turned one person against us!

Why can’t I get my domain from godaddy for $10 a year? Why do I need you and your newfound industry? I appreciate that you think you are “building” something but you could just as well teach courses on how to trademark company names and then extort them for their own name back. No matter how many people are kind, or are making tons of money off of this it still is, at it’s core, a scam.  Just because it generates income doesn’t make it ethical. You are preying on the defensless and that’s the capitalist way but I don;t have to agree or condone it. It is wrong… pure and simple.  I know you have a lot invested in this but you should do yourself a favor and take your seemingly substantial talents elsewhere and do some real good for people.  Teach people how to produce web content, SEO ad copy, etc. etc.  Buying and selling domains that people should be able to get for their actual cost, $10 a year, is just plain wrong.  Sorry to shine the light of truth into your cave of iniquity but just because the cave is full of great people makes it no less a place of cockroaches and scheisters and swindlers.

$10 domains. period.  nobody else should be allowed to own them.  You must show proof of business licensure or bricks and mortar store or within a certain amount of time you must be actively producing something other than waiting like a spider for a fly to buzz along and make you some money for NOTHING!! These laws are coming soon to your industry because of the founders of the internet like myself who all know just how wrong you and your industry truly are.  You are on the same level with spammers.  An unwanted virus that time will eradicate, we just haven;t gotten around to you yet.  Find another business!!

{ 27 comments… add one }

  • Domainer April 9, 2010, 9:47 pm

    I would ask him where he lives and offer to buy his home for the cost of materials – when it was first built.

    Reply
    • Morgan April 9, 2010, 9:48 pm

      @Domainer I like that analogy!

      Reply
  • Kevin M. April 9, 2010, 10:08 pm

    As he says he’s one of the ‘founders of the internet’, he seems just pissed that he didn’t grab some names for himself back when he and Al G. were ..’finding the internet!!’

    Reply
  • Steve Z April 9, 2010, 10:11 pm

    Ask him how he would feel if he were expected to sell his cars for a $10.00 profit. This moron should move to China!

    Reply
  • adinfinite April 9, 2010, 10:13 pm

    sounds like a serious case of jealousy to me. lol

    Reply
  • Ron April 9, 2010, 10:19 pm

    It’s really unfortunate for the Domain Industry that many small business owners have this same view. It will take a little more time and a whole lot of education before the industry is viewed in a much better light.

    What most of them are missing is the fact that just like anything else that have value … it will be worth much more than “basic”, if you have the “premium”; for example, real estate, stocks, etc.

    In the case of stocks, of course you are going to pay under $1 for a less performing stock, while on the other hand, if you want to buy 1 single share of Warren Buffet’s stock … it’s going to cost you $121,050.00 at todays rate!

    It’s possible that the guy who you emailed you is upset about cable companies charging you to watch television, so it’s best to give him a small bit of education (for free! 🙂 ), and move on!

    p.s.,

    These are the people that will be needed to move the industry forward, so educating them will be a major factor.

    Reply
  • Leonard Britt April 9, 2010, 10:24 pm

    Legal & tax services should cost no more than the paper & ink used to produce them, right! Oh by the way, what value does a real estate agent add? Do they really deserve 6% of the sales price (which is more than most domains the typical domainer promotes) for what – showing me a home I could see myself?

    Reply
  • Randall Brown April 9, 2010, 10:37 pm

    Refer to the first post of this to see my opinion, Domainer I agree with you also.

    Reply
    • Morgan April 10, 2010, 3:39 am

      Thanks for all the great comments everyone! Some really amazing points made and I will definitel do a follow-up post with some comment highlights!

      Reply
  • Ragnar Danneskjold April 10, 2010, 12:01 am

    You guys are deluding yourself if you think what you are doing here is akin to Warren Buffett or even penny stock companies. Even penny stock companies are producing something and making a go of it. You are not creating anything. You are not developing anything. You are not even discovering anything. You are, quite simply, stealing intellectual property from it’s rightful owners. A bot could do what you do if not for the anti-bot keygens required nowadays. And why do you suppose those were added to the purchase process? To keep you people from running bots to buy your domains, that’s why. At least now you have to spend the 30 seconds to validate that you are some sort of human. It’s not cool people. Not cool at all.

    Legal and tax service requires knowledge of law and tax code, not paper and ink. How can you even make those comparisons? A robot can do what you do. It isn’t special. The reason nobody has purchased those domains is that the vast majority don’t have an interest in sitting on someone else’s company name in the hopes it will be worth something someday. We are more than happy to let the domain names sit with the registrar until such time as someone is inclined to build something of value around it. That’s called capitalism. That’s what the domaining system was created to facilitate in the first place. What you have created is an unintended consequence. It definitely needs to be dealt with sooner than later and I’ll be advocating even louder for more limitations on this kind of activity after this little exchange.

    Reply
  • B @MindMaps.tv April 10, 2010, 12:38 am

    The central issue, IMHO. Is that domain investors (distinguished from domainers IMHO again), don’t explain the asset class effectively to people. These assets should be marketed as virtual or online real estate and not as a marketing vehicle that is nebulous and whose value is hard to measure. I always explain to people that a domain name is just the verbal representation of an exact, highly desirable address on the world wide web. And just as a plot of real estate on the Upper East Side of Manhattan goes for more than distant land in the desert some place, so too are premium domains. Lastly, Perry Marshall’s research on how an exact match domains statistically-significantly increases conversions is hard to argue with. Check out Ed’s podcast on OzDomainer.com about this….

    Reply
  • Anthony April 10, 2010, 1:11 am

    Morgan this guy is not a professional domainer yet echoed what

    the Domain King has one said … ” I have no business owning

    candy.com … 🙂 “

    Reply
  • Tatjana April 10, 2010, 1:59 am

    I’m so sorry for that person who do not understand different kinds of investment…I guess he/she never had a chance in life to accomplish any goals, and is mad on whole domaining world…
    If he want to pay $10 for domain is good for him, and I wish him all the best finding something he likes…

    Sometimes I receiving e-mail from people selling short observations domain name for such a dollar amount and I’m getting dizzy from the numbers…and If you tell them there is no such a value, they are getting mad…

    2 kinds of people attacking domaining industry…

    1st those who does not understands investments
    2nd dreaming $10 will make them millionaires over night…

    Thank you Morgan for sharing this e-mail with us

    Reply
  • Michael Castello April 10, 2010, 2:06 am

    I think the writer has a basic problem with capitalism.

    Reply
  • Earl Naegele April 10, 2010, 2:20 am

    Where I am originally from, Western Kansas, you can still buy land for $750/acre! Try that in Manhattan (Not Kansas) and you will spend $10’s of millions. If you still can, why? Your still buying dirt!

    It is about supply and demand. And location, location, location.

    I wonder if this same individual would sell his Manhattan dirt for the cost of my Kansas dirt. If so Morgan, have him contact me immediately!!!

    Reply
  • Anthony April 10, 2010, 2:23 am

    Earl very true …
    they are not making any more land …
    although domains can be unlimited.

    Reply
  • everything.tv April 10, 2010, 3:00 am

    Morgan these types you will never change. And Michael maybe right that he has a problem with Capitalism, but then it seems odd to quote or recommend Ayn Rand.

    The guy is in auto liquidation but he founded the Internet ?

    Reply
  • everything.tv April 10, 2010, 3:04 am

    To the point of the title. Domainging may be misunderstood somewhat. But let’s look at everything.

    People do not think they should pay for music , Napster, now Limewire.

    People do not want to pay for movies. Bit Torrent

    When I was a broker people thought they should trade stocks for free.

    People don’t want to pay for anything. Everything should be free except for what they do for a living. Humans have probably been hypocrites since the beginning of time, but this IMO is the Golden Age of Hypocrisy.

    Reply
  • M. Menius April 10, 2010, 3:25 am

    The individual has a very narrow, self-serving view of the world based on his email. People like this exist at all levels and seem to have a fundamental lack of appreciation for anything that doesn’t serve their immediate need.

    Reply
  • M. Menius April 10, 2010, 3:35 am

    The individual has a very narrow, self-serving view of the world based on his email. People like this exist at all levels and seem to have a fundamental lack of appreciation for anything that doesn’t serve their immediate need/view.

    Remember the Wikipedia moderators who fought against “domaining”? When confronted with evidence that domaining is a legitimate activity, these mods (hiding behind anonymity) undermined the collective effort of a number of well intentioned domainers to create an informative Wikipedia page on domaining. They wanted to misrepresent all of domaining as “cybersquatting”.

    Too many critics, not enough common sense.

    Reply
  • Steve April 10, 2010, 4:41 am

    If a large company or a wealthy individual wanted to buy a domain one of these people are currently using, by their own logic, they should not be allowed to sell it for more than reg fee.

    So, if they had an automotive domain and Ford contacted them with an offer to buy their domain for six or seven figures, would they tell Ford, “sorry, I would be scamming you if I accepted your offer to buy my domain for anything over reg fee”?

    Ford would obviously be more “entitled” to the domain than they are. The domain would surely serve the public and the Internet better if it were being used by Ford.

    Would they do the “right thing” and let Ford have the domain for 10 bucks?

    Or, …would they suddenly change their opinion and take the offer?

    If one of these people owned a piece of land and Donald Trump knocked on their door with a huge offer to buy the land, should they be allowed to sell Trump the land for more than they paid for it? After all, they didn’t Create the land …they didn’t make it …they only purchased it.

    Their logic does not stand up. This is why they ultimately resort to anger.

    Reply
  • John Humphrey April 10, 2010, 5:14 am

    The last time I received an email like this I pointed out that the .net and .org version were available for reg fee and that if they preferred the .com perhaps they were already aware of the value of a great domain name. I pointed out that in fact they were paying for the time it takes me to research and discover available domain names worth having, and that the $250 I was asking, wouldn’t cover the cost of a morning consultation with a branding consultant or a paid search expert.

    That said, I would like to thank Ragnar for participating in the discussion.

    Reply
  • Mike April 10, 2010, 8:15 am

    Ragnar mentioned that people should leave domains in the registry until the right person comes. It would be great (I only found out about domaining in 2006 or s0 I have been too late) if it is like that to have Doctor.com for $10. But the problem is there are millions of doctors who like to own Doctor.com $10. If there is too much demand, the price would go up. It is basic.

    Do we need to be angry with those people who bought hectres of land and demand them to sell it at original price? How can we buy a vase made in xing dynasty for its original cost? Life moves on and have to accept that some domains are older than 15 years or so and in internet terms, 15 years might be equivalent to many years. I like a quote saying “Yahoo was late a few months. In internet world, if you were late a few months, that means you were late a long time (to catch up with Google.”

    Reply
  • Edgar April 10, 2010, 12:20 pm

    Let’s do hope your planned TV show will change all that.

    Reply
  • Ace April 10, 2010, 1:17 pm

    @ Steve, you nailed the argument perfectly.

    In fact there was a study done on this aspect of human thinking. I can’t find the link to the article online but the crux of the article was that a human values an item with commercial value a lot more then once they own it. So, if the buyer owns the domain name they will not sell it for a decent price, but at the same time, they are willing to buy it for less. You might be thinking ..”Well done Captain Obvious”. Well, this logic might be obvious but has been applied to commercial use in many transactions. One of them is giving out bonuses to factory workers. Factory workers tend to work harder if you give them out bonus as part of salary upfront with the condition that the bonus will be paid only if they perform(work harder).

    Reply
  • Duane April 10, 2010, 2:52 pm

    I think,
    diamonds, gold, silver, oil, gas and land should be for free.

    After all these are natural recourses and why should anybody be able to profit on it?

    Why does a pair of “7for allmandkind” jeans cost 70$ in the U.S. while the exact pair runs $ 285 in Europe?

    Why does a Porsche cost 25% less in the U.S. than in Germany eventhough it is produced in Germany and does not even need to be shipped ?

    I say no one should profit off anyones knowledge, recourse or property.

    Some businesses need to learn that domains are property and large brands are also sitting on top of genric discriptive domains doing nothing with them. They are just making sure that no one else can build on that part of land.

    Reply
  • Tim April 10, 2010, 3:34 pm

    Nobody that started on the Net after 1996 feels exactly the way this guys does….period !

    There are not many of them out there but they are VERY ANGRY!!!!

    I’ll go out on a limb and state this as fact. I’ve never received an email like this from a modern Internet user. I’ve had people upset, but they never speak like this guy does.

    This guy belongs to a small tribe of Internet Indians that are going extinct. He thinks he is special b/c he thinks of himself as some “Internet Pioneer”. He thinks he has some right to tell us how to manage our affairs. Get real! This guy is now selling cars b/c he did nothing constructive on the Net, just sat around year after year on the BBS complaining about domains and commericalization of Net.

    Like I said in the previous post…..this guy is an “Old School” techie….pre-1995…..NOT an end user. I know his type very, very well.

    Just ignore them. They have no business sense like I said in the in Part 1 of Morgan’s posts, so you will never convince him of our point of view.

    Let their type die off……as they slowly are anyhow.

    Reply

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