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Ask HN: How to deal with domain squatters/resellers?

6 points by halfmatthalfcat ↗ HN
I'm currently working on a project where the .com is owned by a domain reseller who has, in my opinion, an unrealistic valuation. I own the .io, so I'm not super concerned but it's frustrating to negotiate when I feel like the reseller doesn't have a good faith valuation of the name rooted in supply and demand.

How has HN negotiated successfully with a squatter or reseller to purchase the domain at a fairer market price that doesn't seem artificially inflated?

3 comments

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agitator
I'm on the other side of a negotiation, so I thought I'd share my perspective.

I bought a domain I was planning on using, but never ended up doing anything with it. I know that the domain I own may not have a high value now, but I believe it will be much more valuable in the future. It's an investment. A prospective buyer needs to make a good offer, otherwise I would prefer just to hold onto it. I'm perfectly happy holding onto it till I need it, or with some luck, someone makes a decent offer.

Supply and demand are just two aspects of what determines a price both buyers and sellers agree on. Just because no one else is hounding me for my domain, doesn't mean I will settle for less. Among other things, there is a prospective value that has an impact on price, much like overpriced shares of companies that have promise, but aren't yet making a profit.

halfmatthalfcat
I guess what do you consider "settle for less" and how do you valuate your domain? You have the original purchase price (or your annual renewal costs) but it seems that a lot of resellers or squatters tend to artificially inflate demand because .coms are the defacto TLD, yet no one is barking up their tree (no demand).
agitator
Yeah, I admit the amount I would settle for isn't scientific. I'm also not in the website squatting business. I just happen to have a couple of domains that I haven't gotten around to using yet.

It's more so, that I paid for the domain and pay the yearly renewal, and unless it's an offer that I would profit a bit over those total costs, I wouldn't consider it because if I happen to need a good domain in the future, it will cost me more to find one than to just hold onto the one I own and continue paying renewals.