Readings for February 7th, 2008


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The Christian Science Monitor: What's in a (domain) name? Some serious cash.

In the mid-1990s, "lone rangers" lassoed many of the great generic Web addresses and ruled the secondhand market for years, says Jackson. Small companies, often built around one guy, would amass thousands of domains. They were a seclusive bunch, happy to hoard domain names quietly and sell only when the price was right.Most of the venture capital at the time went to Web companies. But when the dotcom bubble burst in 2001, websites that were once valued at millions of dollars became worthless. Yet Web addresses retained much of their value. "Beachfront property is still beachfront property, regardless of what house or store sits on top of it," says Rob Sequin, who entered the market in 1999 and now owns about 1,500 Web addresses. "And the beauty of domains is that you don't need to paint them, or maintain them, or pay taxes on them." By 2003, Web address sales once again broke $1 million. Mr. Sequin says that's the first year he could consider domain trading to be a full-time job. This time, major investors started paying attention.
Source: The Christian Science Monitor

Domain Name Wire: How Did Pool Score Shoppers.com? A Glitch.

Pool sold Shoppers.com for over $166,000 this week, but the name should have been exclusive to NameJet. [Updated 10:24 CST] Pool.com landed a whale this week, catching Shoppers.com and selling it for $166,000 through its auction. Although the value of the domain is debatable, the bigger question is how Pool landed the domain since it was registered at Network Solutions, which has an exclusive relationship with NameJet for expired domains. One rumor was that the domain was deleted due to invalid whois information. That isn't true. The domain had a private registration at Network Solutions until late last year, when its email changed to novaildemail@verisign.com [sic, notice the wrong spelling of valid.] This suggests that the domain had incorrect whois information. However, the domain had an expiration date of October 28, 2007, so the domain did expire.
Source: Domain Name Wire