Domain investors get a lot of grief from people looking to buy domain names that were registered long ago. Occasionally, the grief is warranted, but by and large, domain investors tend to make it easier for end user buyers to acquire the domain names they covet.
I spend a ton of time working on domain name acquisitions. I think it’s more challenging than ever before to acquire the domain names I typically target. I regularly come across domain names owned by medium to large companies, and it is very, very difficult to persuade these companies to sell a domain name. In the whole scheme of things, offering an extra $50,000 or $100,000 isn’t going to move the needle, particularly when the person on the other side of the discussion doesn’t stand to benefit upon a successful sale.
Domain investors, on the other hand, are generally happy to sell when a reasonable (market value) offer is made. It may not be easy coming to an agreement on what the market value is, but most domain investors are happy to sell a domain name for the right price.
One thing domain name buyers complain about is that the prices domain investors set is much more than they had hoped or expected. This seems to irk people because they feel like they are paying more than they should to acquire the domain name.
When dealing with someone who gets upset about the price, I like to remind them that if the price were lower, the domain name would likely have been sold to someone else already. If that would be the case, the domain name wouldn’t be available to them at all – or it would be expensive since it would be in the hands of someone else who prized the domain name.
Domain investors may be disliked (or despised), but I think it is far easier to buy a domain name from a domain investor than it is to buy from a large company or someone who has significant ties to the domain name. Instead of being outraged about domain investors, domain buyers should appreciate that the domain name is available to buy rather than held by a registrant that is totally unmotivated to sell the domain name.
Interesting point, I haven’t bought domains directly from a company before. And, the same could be said for selling to a company. Unless you’re dealing with a c-level stockholder or partner, most often middle management isn’t motivated for long term gains.