Why is it when something newsworthy transpires, a new product launch like the WII or the passing of an artist, Michael Jackson, do domainers rush out and register anything related to the individual or product? We (domainers) seem to think www.michaeljackson2009abcxyz[dot]com is worth 10 million dollars. Just visit any registrar and try to find any domain name with Michael Jackson in it…truly bizarre to think someone would actually be able to resell it (www.michaeljacksonblahblah[dot]com) for profit. A quick search on eBay for “Michael Jackson” netted over 22,000 results. Free enterprise, have to love it…but in reality it is the domain name registrars that make all the dough as speculators buy up everything then 95% let them drop a year later when registration is due.

The actual glove worn by Jackson recently sold for approximately $50 K so why would an undeveloped domain name be worth hundreds of thousands of dollars?

Well, the true value of a domain name is what your customer is willing to pay for it. The highest returns are made when you are able to find an end user or someone whom has the intention of developing the domain name. They have a specific need for it to sell their goods and these are usually corporations or businesses. This is your target market!

The biggest returns I have made were as a result of contacting corporations directly using a well written letter identifying how they can use the domain name or how it would compliment their existing business. And  make sure you address it to the right individual in the company. If you cannot find a contact on their website phone them directly and ask whom you should address the letter or e-mail to. We would love to hear your success stories when it comes to selling domain names and how you accomplished it.

For those interested, here is an excerpt on the Jackson glove:

Sun Sep 6, 6:22 am ET

MELBOURNE (Reuters) – A white glove worn by the late singer Michael Jackson sold at auction for A$57,600 ($49,000) in Australia Sunday, nearly twice the price auctioneers expected, the auction house said.

The white bejeweled glove was a trademark of the U.S. singer, and according to auction house Bonhams and Goodman this was the first Jackson glove to go on sale since he died in June at the age of 50.

The glove sold in Melbourne Sunday was worn by Jackson in Sydney in 1996, on the day he married Debbie Rowe, the mother of his two elder children, the auction house said.

After a bidding war between collectors in Australia and the United States, it was bought by Warwick Stone on behalf of the Hard Rock Hotel and Casino in Las Vegas.

“There was a huge amount of interest in the week leading up to the sale. We were still pretty surprised by the price,” Charlotte Stanes of the auction house told Reuters.

In November 1996 Jackson was in Sydney during the HIStory tour, and attended a premiere in Sydney of the film “Ghosts,” in which he starred. Earlier the same day the singer had married Rowe.

At the end of the performance Jackson threw the glove to Bill Hibble, a collector of music and film memorabilia, who has since died. Hibble’s mother put the glove up for auction.

Giles Moon, national head of collectables for the auction house, said he was “astounded” by the price it fetched.

Filed under: Domains General, Domain Name Valuations