It’s almost always nice to see a mainstream publication covering the business of domain name investing. Many of these articles focus on the ease of domain investing for the average person to make some extra money, and while it’s not usually as easy as is implied, I do think there are opportunities for people to make extra money if they spend some time learning about domain names and what makes a good domain name investment.
This morning, I saw that Business Insider published an article that mentioned domain name investing. 7 things the average person can flip for a profit discusses how someone can register a domain name to resell it for profit. Of course I agree with the concept of flipping domain names (or longer term investments), but I do not agree with an aspect of the strategic approach the article suggested.
Here’s the excerpt that I think is partially misguided:
“Watch for memes that become popular, celebrities or politicians that explode onto the scene, or other sudden cultural phenomena, and try to secure some domain names that relate to the latest talking points.”
I added emphasis around the aspect that I think is misguided and can get someone in trouble. In my opinion, buying the exact full name of someone famous in order to resell it is unwise. It can lead to legal trouble, such as a UDRP or even a lawsuit. It can also lead to accusations of being a cybersquatter. In fact, buying the exact .com name of someone famous or who will become famous to sell to that person is pretty much cybersquatting. I don’t think it’s a nice thing to do either.
I think buying a domain name because it’s the exact match of someone famous is a bad idea. A very bad one, in fact. I think the risk far outweighs the reward. I am surprised Business Insider suggested this.