The "adding value" argument

[grcorp]

A recent thread in the legal section consisted of a fellow DNF user being accused of "adding no value" to a domain name by simply holding onto it.

I did not regard that particular string of words as much as I should have... as once I gave it some more thought, I realized just how little sense it made.

Does a homeowner "add value" to a house by "simply holding onto it"?

What about someone who buys stock? Or gold bullion? Or collectible art?

If any of these things are sold at a profit, how is any value added by the person who sold it?

There is no addition of value! But yet, nobody seems to question these things as being profitable to invest in.

Where is the logic in considering domain names to be any different?

 

[Biggie]

A recent thread in the legal section consisted of a fellow DNF user being accused of "adding no value" to a domain name by simply holding onto it.

I did not regard that particular string of words as much as I should have... as once I gave it some more thought, I realized just how little sense it made.

Does a homeowner "add value" to a house by "simply holding onto it"?

What about someone who buys stock? Or gold bullion? Or collectible art?

If any of these things are sold at a profit, how is any value added by the person who sold it?

There is no addition of value! But yet, nobody seems to question these things as being profitable to invest in.

Where is the logic in considering domain names to be any different?

there are times, when who buys the house, can add value to it

or when warren buffet buys a certain stock, the value of the stock may increase just because HE bought it


the same with domains, if certain domainers show interest in a sales thread or bid on a certain name...it can add value by perception to others.


just saying...

 

[grcorp]

there are times, when who buys the house, can add value to it

or when warren buffet buys a certain stock, the value of the stock may increase just because HE bought it


the same with domains, if certain domainers show interest in a sales thread or bid on a certain name...it can add value by perception to others.


just saying...

Well, that's to other domainers... the context I'm referring to specifically is one where the end user who is threatening a UDRP on the owner claims that a domainer owning a domain name as an investment adds no value, therefore making him unable to demand a premium for it.

In a normal context where I might buy a house for $300,000, and a year later sell it for $400,000, having done nothing to it, that is not generally disrespected or questioned by people.

I have never heard of anybody approaching a homeowner of a listed house and saying "you only paid $______ for this house - why are you selling it for $______ more?"

But yet this happens all the time with domains and domainers. This is what I'm trying to decode.

 

[Poker]

This is what I'm trying to decode.

Nothing much to decode. Unscrupulous individuals attempting to force a better deal for themselves on an investment that they failed to pay attention to in the past.

Any innocence on their part it is simply their own ignorance concerning the validity of domain name investment. Ignorance of the truth (as with law) is no excuse.

The truth, of course, is that domain name investment is synonymous with real estate investment. An undeveloped domain name is simply undeveloped land. Someone's ignorance of the reality of (digital) real estate is no grounds for attempting to shake down a (domain) land owner.

 

[katherine]

People who make MFA sites add no value either, they just do it for their own profit, no for the benefit of visitors.
At least parked domains don't pollute search engines. That's why Google has problems with MFA and not parked domains.
But for some strange reasons, domainers are castigated worse than spammers

 

[dcristo]

Adding value is usually done for less than premium domains, but still profitable developing them, and gives potential buyers a better idea of what can be done with the domain. True premiums speak for themselves.

 

[Biggie]

the context I'm referring to specifically is one where the end user who is threatening a UDRP on the owner claims that a domainer owning a domain name as an investment adds no value, therefore making him unable to demand a premium for it.

I have never heard of anybody approaching a homeowner of a listed house and saying "you only paid $______ for this house - why are you selling it for $______ more?"

But yet this happens all the time with domains and domainers. This is what I'm trying to decode.

it sounds like this "end-user" is trying to intimidate by threatening to file a UDRP, based on their presumption that the asking price exceeds their assessment of value.

which is the same as another domainer saying you bought the name for $200 on nj 3 weeks ago, now you want $2750 for it.

but my answer is...if you want it, pay the price or keep walking.

People who make MFA sites add no value either, they just do it for their own profit, no for the benefit of visitors.
At least parked domains don't pollute search engines. That's why Google has problems with MFA and not parked domains.
But for some strange reasons, domainers are castigated worse than spammers

not getting the rationale, Katherine

if mfa sites add no value, and no benefit for the visitors....then how do they make profits for the owner?

the visitors are obviously clicking on the adsense links, therefore providing a benefit to them ( the visitor )...and to the advertiser.


and i'm not really understanding "pollute" in reference to SE's


as i see their job (SE's) is to include or compile data, while our job as the visitor is to refine and research based on keywords entered.


at what point do we decide what should or should not be included?

 

[Gerry]

I have never heard of anybody approaching a homeowner of a listed house and saying "you only paid $______ for this house - why are you selling it for $______ more?"

Trust me...this does happen. I was selling 4.5 acres of land several years ago. I had a prospect that I met with on the land. It was beautiful river frontage, high level building site, gentle slope to the water.

And your example above??? That is precisely what I heard..."you only paid xx,xxx for this land. Why should I pay you more?"

Well, the land did sell but he was not the buyer.

 

[oldtimer]

Every time I hand register a new domain name that didn’t exist before, I feel like I have created something of value, it doesn’t matter if I only paid 9 dollars to register it (or in some cases 99 cents if godaddy had a special). That domain is now more valuable to me than what I paid for it since I can use it to make a website (or mini site).

Ojohn

 

[Gerry]

Every time I hand register a new domain name that didn’t exist before, I feel like I have created something of value

ditto.

To add something in Maxwell's favor, I handregged a very common typo of a newly approved diet drug. I got an email from a someone claiming to be an MD wanting to buy the name for $300 because he knew that I had just regged it. Yet, he goes on to say he is writing a book on diets and dieting and wants the name to drive traffic to his site.

Well...its only worth xxx because it is new...yet he knows it is a popular typo and knows it gets traffic and he wants the name to drive traffic to his site.

Sometimes people can not even see their own contradictions in their own statements