How To Waste $500,000 On A Domain Name - Startups.Com Story
pickydomains.com
pickydomains.com
I was going to delete this "dupe" but since the discussion has kicked off here, I'll keep it. However, if an admin wants to "fix" the link to point to the original TC source, please do so! :-) Mea culpa!
> Arzuage says he doesn’t want to sell the domain, even though he has already had offers in the high six figures should he change his mind.
He could have named his company: randomstartupdeals.com, or something not as succinct as startups.com but much cheaper. Then he could have used that $500k to extend the life of his business (possibly through another pivot or two).
However you are correct if a startup gets $X funding and spends $Y on a domain and then runs out of funding, if having $Y in cash at the end would have given them enough runway to significantly change their odds of success, spending that money on the domain might not have been the best idea.
It doesn't appear that is what happened in this case, though.
Overspending on a domain is a habit of past, and doesnt't bring you any advantages. Focus more on marketing, product and usability.
Recently I just purchased another domain for one of new product. Actually I named the product just after I got a domain. It's Dokeeno (http://dokeeno.com)
The point here is don't spend on domains and name of your company, Just build the brand & product
Some domains are rightfully worth millions and millions.
As someone who paid $8000 for his domain, I don't believe domains are currently overpriced. You can buy prime real estate on the internet for less than than the quarterly lease companies are paying for physical prime real estate in shopping areas.
both set up for $10 (each) at a point where I was unemployed, had nothing beyond the few $ I made freelancing, both now doing over 1,000,000,000 page views a year (with adverts). Wouldn't have existed if domains were priced at $20 or more each (I had $40 to my name at the time, if I remember correctly).
Congratulations!
If I could register domains like AmazonDeals.com I could make a killing too, but they would get shutdown instantly.
Websites that do exist that are making a lot of revenue and employing a lot of people would not exist if domain prices were changed to be only affordable by those with substantial income. I've seen other HNers talk about this before, I'm sure if you don't like my example I can find other examples that don't have anything to do with trademarks.
> You're trading on someone else's trademark, that's what made those domains work. It's likely both could be shutdown with a UDRP.
Also specific to this point, no, we have been permitted to use the Minecraft trademark since day 1. We can't be shut down (not that they would ever want to).
Most people who are genuinely prepared to put effort into building a business would be willing and able to spend a bit of money. Maybe $500/yr is too high (I think so) but I seriously doubt $100/year would stop anyone who was at all serious.
Maybe my world view is skewed because I spend a lot of my time around people that build sites as hobbies that turn into businesses and not true startups like Instagram or Twitter.
I forget the persons name, but just last week a hackernews user posted about their top 400 (I think it was 400?) US website that they started in high school as a hobby, I doubt they would have started that if domains were priced at $500.
could you possibly name a few? perhaps I can learn new things...
I dont fall for this reasoning. Same way you could tell a cop to leave that cocaine dealer alone because selling drugs is his only "job" and he has a family of four and uses his profits to buy diapers.
If you bought a good domain, regardless if it was $10 or $500, AND obtain a copyrights to use the trademark, you are in a different category - your success is not based on cheap domain, but rather the fact copyright owners cannot go legally after you.
I still stand behind my point. If you truly believe in your startup, then you would shovel camel shit for six months just to get that $500 to make your startup come true.
I'm not saying we were successful because the domain was only $10, I'm saying if the domain would have cost more than I could afford ($500 was the arbitrary figure provided above) then I would never have created the websites, just like many people I know.
The company I work for currently owns quite a lot of video game fansites, they're acquired from the creators and the original creators are hired to manage them. From the 50+ websites I see listed in our analytics I can tell you the majority were started as a hobby by one guy/girl but now help support many employees and provide real revenue... people that had a passion for their chosen subject matter and didn't care about making money and as such wouldn't have been able to invest $500+ in it.
There is a world outside the hackernews idea of making money online. I started the sites because I liked the game and wanted to provide value to other people, I didn't care about money and I still don't (even if I do live in a nice apartment). The company I work for was started as a hobby and now is a profitable enterprise with big name investors.