Should I Just Buy This Domain?

jhacks · 2013-05-02T04:19:56.000Z

I have a domain name currently that is similar to flickr.com, scribd.com, etc. in that with one letter excluded, it still sounds like the word.After customer and market validation and with my co-founder and I coding, I realized it'd be important to trademark the name. That has gone through. Which is great since the name is a great fit, is a real word (less the letter), easy to say, and easy to remember.The domain name with the correct spelling is available for purchase for $1.5k ("buy it now" so no negotiation). Honestly, similar or worse domain names are trying to be sold for more money and I would happily pay $500 - $1,000 without issue.Should I just purchase it at this price? I doubt it goes lower and there isn't an option to negotiate. I guess the only thing holding me back is that it's a big sum (I have the money - since still working day job). I wonder if my incorrectly spelled domain is good enough?But then I see that flickr has flicker.com. In terms of word of mouth, I'm sure there will be people who try spelling it correctly, in which case I would have potential to redirect them. It could help with SEO as well.Any and all advice appreciated. Thanks!

itsprofitbaron 13 years ago |

Without knowing what the domain is, I can't comment on its actual worth but considering everything that you have said you should buy it.

The reasons are because:

- You're already committed to the name - you have a trademark and you say the name is a great fit for your startup

- You are already willing to pay $1000 for it ($500 more isn't that much in real terms especially, if you think you can at least recover $1500 for the domain if the startup fails)

- If your startup becomes successful, you are going to want to acquire that domain name (and once you're successful the owner will want a more substantial price)

tacticus 13 years ago | |

Since they have a trademark for it and the current owners are using it in bad faith can't they use wipo to get the domain.

The cost may be greater than just buying it. i just have a dislike of those squatting on a domain.

dangrossman 13 years ago | | |

> the current owners are using it in bad faith

He never says this. Merely holding a trademark does not entitle you to take a domain from someone (see: Nissan Motor Company v Nissan.com). Sitting on domains is not illegal.

Navarr 13 years ago | | |

Nissan.com is a legitimate company with a legitimate purpose though.

dangrossman 13 years ago | | |

The submission here says nothing about who owns the mystery domain except that they're willing to sell it. You don't need to be a "legitimate company with a legitimate purpose" to register domains. I own domains I only use for mailboxes; you can't take them by paying $350 to register them as trademarks. If I put a "for sale" page on the domain, that wouldn't let you take them either.

The UDRP only allows a dispute when the current owner is using the name to intentionally "attract, for commercial gain, Internet users to your web site or other on-line location, by creating a likelihood of confusion with the complainant's mark...". Or, if the domain was registered for the purpose of selling it to the trademark holder, but that's not the case since the domain wasn't registered after the trademark and the owner didn't reach out to him.

tptacek 13 years ago | | |

What purpose would that be? A quick visit to their site strongly suggests that a pretty important purpose of their business is to squat NISSAN.COM.

w1ntermute 13 years ago | | |

Based on their website, I'll go out on a limb and say it might have something to do with the computer company owned by one Uzi Nissan.

darushimo 13 years ago |

My guess is that the discrepancy between the general $10/yr from godaddy and the current $1500 is what's getting to you... My advice would be to try to disregard the "standard" price for a domain and just ask if it's worth it on its own.

One way to look at it: you could say that the "standard" price for a domain name is no longer standard at all--that most (not all, but most) good domain names are already taken, and that "$10/yr" was a historical moment that already passed. However you create the story, it should lead you to ignoring what you think "should" be the case, and help you take full consideration what IS the case.

jhacks 13 years ago | |

Yes. That is likely in my subconscious. Also, I think going above 4 figures makes it "large" (for me) so more difficult to swallow. My co-founder and I have already spent countless hours on the startup, I've spent money on the trademark and even minimal hosting costs. And I know we will have more costs once we launch and get things going (although hopefully we can be break even or cash flow positive as quickly as possible). What's $1.5k at the end of the day?

I think it's going to be worthwhile to buy.

benackles 13 years ago |

If you're not building a physical product, I don't think it's necessary to invest in a domain. Early on you should just be focusing on the product. The name may change as the product evolves. If your product reaches any level of success, you can then decide to purchase a better domain. At the point of success, you'll have the resources to purchase a better domain.

Keep in mind...

* dropbox.com was getdropbox.com

* basecamp.com was basecamphq.com

* foursquare.com was playfoursquare.com

* facebook.com was thefacebook.com

There are a lot of creative ways to fake it until you make it. Don't choose a terrible name that nobody can pronounce, but there are other alternatives for a lot less money. In the last year, I've purchased a half dozen domains that are simple to pronounce and didn't cost more than $9.

davidandgoliath 13 years ago | |

"At the point of success, you'll have the resources to purchase a better domain."

And it'll cost far more, vs. at this point where it's extremely inexpensive. That price will raise as his service/product gets more successful.

benackles 13 years ago | | |

Say you have $10,000 set aside to start a business. If you invest $1,500 in a domain name, before you truly validate your product, then you are throwing away 15% of a very limited budget with $0 in cashflow. Now say your business has been validated and you're making $100,000 per year. If the price goes up to $15,000, you're still in a much better position since you have proven cashflows to legitimize that expense. The original $1,500 was actually much more expensive, relative to your cashflows. You would be buying off the assumption that you're business will succeed, rather than when your business is succeeding.

illuminate 13 years ago | | |

"it'll cost far more"

And you'll be able to afford it better then.

"at this point where it's extremely inexpensive"

Not necessarily compared to how much you're investing in it.

Tpsoc 13 years ago |

If this will be a real legit business making money, 1500 isn't worth the risk of having to potentially pay 100x more when your business URL is known and thus may increase the value of the domain you are looking to buy.

gonehome 13 years ago |

Flickr didn't have flicker.com until recently and I think it cost them over $800,000 if I remember the bidding for it correctly. Probably worth just buying it now and not worrying about it.

jhacks 13 years ago | |

Really? Wow. Honestly doesn't seem worth it to wait. It'll most likely only help to have it earlier for word of mouth and SEO.

holic 13 years ago | |

http://domainnamewire.com/2010/06/14/yahoo-settles-lawsuit-a...

stevewillows 13 years ago |

Like others have said, ignore the typical cost of a domain and consider how many 'conversions' it will take to cover the cost of a decent domain. If you're intending on making money, it won't take long to have that domain name pay for itself.

All this said, ensure you can get the other appropriate usernames for twitter and any other social avenues you'll promote through.

Best of luck!

jhacks 13 years ago |

Thanks for all the advice guys! I'd edit original post but I suppose it gets locked. Anyway, I went through with the purchase. I think it was worth it.

Does anyone happen to have advice on domain transfer? I have a feeling it gets done through the same I bought it through but not quite sure yet. Hopefully transaction goes through soon / shortly.

Thanks again everyone!

simantel 13 years ago | |

What was the name/domain?

joshu 13 years ago |

Drop me a line - I have some tools to explore this space I am working on that might help you.

jhacks 13 years ago | |

Sounds good. You don't have email (well, there is tastylabs contact) in your profile, but any other preferred form of contact?

tdignan 13 years ago |

I once got $500 through network solutions for a domain I didn't even want. A year later the buyer let it expire.

The way network solutions even found me? WHOIS.. Did you try whois yet? Their contact might be right there.. they might go lower.

shenanigoat 13 years ago |

A single dictionary word .com is almost always worth $1500. Buy it now before the price goes up and you have to fight for it later. Better than spending it on beer and other stuff that makes you fat.

plaxis 13 years ago |

I say try politely negotiate reducing the cost. I've managed to talk down 75% or so from that range, and I wouldn't call myself smooth...

mikeburrelljr 13 years ago |

Buy the correctly spelled domain name, and redirect to your trademarked term / domain name. $1500 for a domain is very reasonable.

waltz 13 years ago |

don't forget to buy the .net .org .edu .co .us .br .es .xxx .gj .aj .xj .ns .jt .tk .fj .gja .aj .rjg .al .gj .jq .jp

jhacks 13 years ago | |

I assume you are being sarcastic?

However, I wouldn't think bothering with anything but .com is worthwhile?

waltz 13 years ago | | |

It really isn't. And dropping 1.5k on a .com isn't either in my opinion. Web application markets are evolving, people will look for a product name, not a url system that's not even relevant to a user, unless it is for browsing files.

tdignan 13 years ago | | |

One major caveat: word of mouth will lose the extension in translation. People still assume .com first if they can't think of anything else. Scale up, and that's a sizable portion of lost users.

jhacks 13 years ago | | |

That is a good point. It's tough though, I agree that in the future, the URL system might not be as important. However, right now that transition hasn't been made.

doctorwho 13 years ago | | |

Regardless of sarcastic intent, stop and think for a second about how you'll feel when someone DOES register one of those domains. If your site becomes popular and you don't own all of them, which domains would impact your business the most? If you're serious, buy those ones before they become valuable.

gregcohn 13 years ago | | |

I would especially consider that that someone would very likely be a direct competitor.

danfitch 13 years ago |

Worst case could you sell it for 1k. Then you lose 500. I say it's worth it.

chmullig 13 years ago |

Yes, you should probably buy it if you're serious about the company.