Petty taxes

Marty Schwimmer prints an excerpt from this story, about a guy who wants to buy a domain name to start up a new business, but can’t afford the $1000 for the name he wants and which is being warehoused by a domain seller. The would-be buyer doesn’t even counter-offer — why not? He probably could have gotten the domain for under $500 if the starting price was $1000. The domain seller feels guilty.

Writes Marty, “This is an illustration of how the domain name system sometimes function as a tax on small business.”

I guess. A little tax is still a tax. It doesn’t seem “fair” — but in fact, the person who registered that name first got the real estate precisely because he recognized the domain name’s future value. I can’t fathom a small business that doesn’t have $1000 for the “right” domain name that has any chance of succeeding, considering that most small businesses fail precisely as a result of a lack of capital.

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Author:Ron Coleman

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3 Responses to “Petty taxes”

  1. Trademarks and Domains
    September 21, 2010 at 12:54 am #

    Can you rewrite the post on this one but compare it to standard – I didn’t get it? Great way to approach it, but perhaps I just haven’t thought of it that way.

  2. January 22, 2011 at 11:05 am #

    Never occurred to me bu that’s a great idea. Just like buying a car, make an offer. All they can say in no. But they may say yes… just to move some inventory!

  3. July 13, 2011 at 4:00 pm #

    Thanks for enlightening my mind. I absolutely admire what you are doing.