Should I Buy 50,000 .XYZ Domain Names?
As you have probably heard by now, Uniregistry is selling .XYZ registrations for $.01/each for the first year. I saw this tweet from Frank Schilling and it got me thinking:
Ever wanted to own a million domains? Go .. NOW! https://t.co/pL2Kkeq7UV
— Frank Schilling (@Frank_Schilling) May 31, 2016
I could buy 50,000 .XYZ domain names for just $500. I could make sure that auto-renew is off so I don’t accidentally pay full price next year to renew them. I could then list them on Uniregistry Market with $500 BIN prices and see if any of them sell. Even if just one of these domain names sells in the next year, I would break even. If more than one name sells, it would be a profitable endeavor.
Essentially, doing this would be a gamble. Although $500 isn’t much risk for me considering my enjoyment of blackjack, there are other risks and costs to consider:
If I were to try and register 50,000 domain names, it would take a considerable amount of time to put together a list of domain names to buy. It would also take time to do perform bulk searches, as I am not sure if Frank would allocate time from one of his team members to do the search for me.
Registering 50,000 domain names is bound to create legal risk. With a portfolio of 50,000 domain names, it is likely there will be some trademark issues. Even if all of the names are generic in nature, it is likely that some trademark owner will take umbrage with my ownership of a keyword brand name that their company owns. I highly doubt someone would file a cybersquatting lawsuit over a parked .XYZ domain name, but I could see someone filing a UDRP (even though the $500 BIN price is lower than the UDRP cost) just to prove a point and show others that they will protect their brand. Even if they don’t file a lawsuit or UDRP, there is the potential that someone could label my company a “cybersquatter” on social media or on their website.
I am still not sure whether or not I am going to register a whole swath of names. I don’t think the odds of selling are great if I only buy a handful. I imagine it would take a large purchase to make it worthwhile. I am still not sure if it’s worth the time and/or risk to do this, so I will likely be on the sidelines.
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