Holding Domains Hostage for Profit Isn’t Right
This post is a formal complaint against those who make a business from holding domains for profit. Anyone can register a domain and own a domain. Finding an appropriate domain that is relevant to your business and what your business does, is becoming increasingly difficult to do. The most common domain extensions (.com, .ca, .net) have been bought up by domain brokerages and people looking to benefit financially by holding as many relevant domains as possible.
A Conflict of Interest
Some hosting companies make matters worse by offering to negotiate for their clients and even placing a value on the domains you hold. They will list your domains and if not hosting a website they will ask, “want to try and sell this domain?” “It’s estimated value is ___.” We feel that is a disgusting, greedy move that’s counter productive to being a good hosting company. If your hosting company does this, you have to wonder if they will be there for you when you need them. Will they support your business, or will they exploit it? Read about GoDaddy Broker.
Waterloo Web Works is a website design company that also assists clients to find, register, and renew domains that will direct people to their website. Over 18 years in business, we have helped negotiate and purchase the rights to register domains for several companies. Domains we have purchased for costs up to $10,000 and as low as $100. We feel that people and companies who register domains with the intentions of selling them to the highest bidder is exploitation.
Starting in Business is Expensive Enough
Everyone starting a new business can expect many expenses to get started. Something as simple as registering a domain shouldn’t cost more than a typical registration fee of $10-$20. How would you feel if you had to pay $50,000 or more for something that should have a minimal cost? There should be international laws to prevent anyone from holding domains hostage for profit.
Getting the Right Domain Name
It’s very important to get the right domain name as it is the very first thing that is crawled by search engines. Unfortunately, many businesses have had to settle with vague domain names with a disconnect to their business, making it difficult to promote their website and business. Usually, a business settles while their perfect domain name(s) are held indefinitely by those looking for domain ransom money.
One of our clients transferred their domain to a “Search Engine Optimization” company with promises to get better search results for their business. Without our client’s knowledge the SEO company closed and allowed our client’s domain of 25 years to expire. Later a domain broker associated with GoDaddy wanted thousands of dollars for the domain. Our last exchange with them we we’re offered the $20 domain for $4500. In frustration we turned them down.
The business that lost their domain has thousands of customers that have known this website location for years. What will they think when they go there and find nothing? And what does the company do with all their printed materials and marketing with the lost domain.
Shame on You!
If you own a domain name that you purchased only to sell to a business in a similar situation, then you are part of the problem. However, if you’re a company that exists on others misery because you bought up all the domains, shame on you! Stop holding domains hostage for profit!