Highway Robbery by Domain Brokers

So, on June 15th of 2007 I wrote this letter to the current domain broker owning notsosoft.com:

You all have a parked domain at notsosoft.com. I’m wondering if you would be willing to sell it at a reasonable price since it’s just parked. Thanks.

Today I got a reply from them. Here is the reply:

Hi Man Chicken,
Thank you for your interest in notsosoft.com. We are currently not
entertaining offers below $3500 for three-word generic terms with the
expectation of a higher price upon receiving a proper evaluation. If
this is out of your price range I will be more than happy to search our
portfolio for a domain that better suits your needs. I look forward to
hearing from you.
Thank You,
Lauren [snip for privacy reasons]
Sales Operations
[snip for privacy reasons]
www.iREIT.com

This is insane. These people actually think they’re going to receive $3,500 USD for this domain? It’s been parked for at least three years, and I seriously doubt they’re receiving offers from anybody other than bloggers such as myself.
Now, I know that you all may argue that this is the free market, and all’s fair and blah blah blah… but these companies are doing this everywhere. Almost any domain you try to find these days is either used by someone else for their legitimate purpose, or is parked by some horse-crap domain broker. This is wrong because it excludes startups and normal folks like you and me from actually being able to get into many domain names. The reason why we’ve got so many new domain suffixes popping up isn’t because the domains are all being used by legitimate folks, it’s because they’re all being parked by idiots like this.
I understand it’s a business model that many think is harmless advertising, but it really is harming the ability of normal folks online to express themselves using logically named domains. Either way, I hope these folks enjoy their domain, because they’ll have it for a long time.

2 Replies to “Highway Robbery by Domain Brokers”

  1. Its a good example of supply vs. demand. If no one shows interest then the price will drop. If no one still buys then the company goes under. Not a good business model if you ask me. 3,500 USD is outright ridiculous and some one should punch their youngest child in the head. I think you should write them a “Stop hitting the crack pipe” letter and see what kinda response you get from it.

  2. Except that I don’t think it’s supply and demand. I think it is a company that is comfortable making money off of the tiny bits of ad revenue they’re getting in in hopes that they can snag some high-cap suitor to pay them big bucks for the domain. Every other aspect of domain name registration is regulated, why not this?

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