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The idea of preselling a domain name before you’ve even acquired it, is certainly not a new idea. I know several Domainers who have done this (including myself, once). Its a challenge and a risk, but clearly there is a reward if you are successful.

There are also major problems when you are not. In the simplest form you can agree in principle to sell a domain name, then once acquired, the buyer changes their mind. At this point your stuck with a domain you thought was already sold and desperately looking to offload.

An issue was brought up on NamePros forum regarding a new form of this method. The issue revolved around the domain name DMG.com. This domain was dropped and captured by SnapNames. One of the bidders prior to the auction completing, contacted out a potential end-user offering to sell. If this has been "right", he would have learned how much the end-user would pay and could have bid anywhere up to that point.

However, this concept failed miserably. He alerted a Trademark holder to the auction and they have threatened litigation to obtain the domain. Now whoever does win the domain will more than likely be facing immediate legal action, potentially losing this domain name or even just being out the legal fees of defending themselves.

Despite the ethical questions (and there are many), Preselling domain names is a questionable practice that can be very damaging to other domainers. I recommend avoiding this strategy.

Justin

Starting in Christmas, yours truely will be in Europe. I will make my first stop in London. (Should be there for about a week) then heading to Athens on the first. I’ll be working my way back to London via the EURAIL with stops in Italy, France, and Spain.

Mostly backpacking with my girlfriend and family I will do my best to keep everyone udpated via this blog. If any of you European domainers care to meet up in the major cities, perhaps giving us a little tour? I’ll try to be available.

Justin