Cash parking Allows You to Pick the Time to Sell
What would you say an American carpet salesman had in common with a Texan entrepreneur and a British soccer fan? The answer is simple: each one had a domain name that somebody else was willing and particularly anxious, to acquire for themselves. Cash parking could prove to be one of your most valuable assets – especially if you hang onto it until the most opportune moment before agreeing to sell. Sadly, in the case of the soccer fan, he was ordered to part with his domain name by a British court as it was interpreted that he had infringed the trademark of the soccer star to which the domain name related. Conversely, the battle of the domain names continues to rage between Scottish housewife in Mossend, Lanarkshire and top American lawyers: all will be revealed as you read on.
A Valuable Asset
Marc Ostrofsky, an entrepreneur from Texas purchased the domain name ‘business.com’ for £75,000 [British pounds, not dollars]. This equates to US$ 284,188.33 at today’s conversion rates. However, you can see how lucrative cash parking can be for people such as Marc Ostrofsky who sold ‘business.com’ in 1999 for £4.6 million [British pounds] – you’ll have to work the conversion of that one out for yourself but, suffice to say, cash parking with a particularly sought after domain name can make you a huge profit if you hang onto it until the time is ripe to sell. The secret is in the domain name and an essential ingredient involves parking a domain. An investor purchased the domain name ‘megayachts.com’, eventually paying $ 150,000 for it at the culmination of a fast and furious auction.
Threats of Legal Action
When it comes to getting on the bandwagon, that is exactly what the Scottish housewife did – and you have to give her full marks for being on the ball. The minute she heard that Donald Trump was considering the development of a luxury golf retreat and resort in Scotland – at Balmedie in Aberdeenshire, to be exact – she quickly registered the domain name ‘trumpgolfclub.co.uk’. Donald Trump’s lawyers have labelled Hayley as a cybersquatter, warned her against selling her domain and threatened her with legal action. In Hayley’s case, cash parking- this domain – is her best bet to selling it to the Trump Empire in the future: if she picks her time to sell she could make an absolute killing.
A Growing Industry
The purchase and sale of domain names is now big business, worth an estimated $ 2 billion. It has been predicted that, by the end of 2010, the industry of buying and selling domain names will have reached $ 4 billion: that remains to be seen, but it is certainly heading that way. In 2007, globally, more than 128 million domain names were registered. According to Verisign, Inc this figure has increased by 31% in just 12 months: now, as we head into 2010, the number of registered domain names has exceeded 150 million, with an estimated 90,000 domain names being registered per day. This is excellent news for the domain parking industry as the majority of those 90,000 a day will be cash parking rather than develop it.