Bob Parsons, CEO and founder of domain registration company Go Daddy.com, says this type of business is fairly straightforward."They make their money in two ways," Parsons said.
"One way is through the traffic they get and the other is the appreciation of the name."Parson didn't think there was anything wrong with the practice as long as those involved weren't using names trademarked by others."Domain names are becoming 21st century real estate," Parsons said.
At the moment, Fischer, Goldberger and Eli are sitting on their names.
They've recently turned down million-dollar offers for and As technology evolves, maybe direct navigation will fall off the charts and there goes your property."Copyright 2007 The Associated Press. This material may not be published, broadcast, rewritten, or redistributed. FIND MORE STORIES IN: Manhattan | Internet domain | Ari | By Bebeto Matthews, AP | Internet business "You got it," a smiling Fischer tells Eli. These are boom times in an estimated $2 billion industry that involves the buying and selling of domain names.
Words that allow them to own a category such as and cardiology.com, two of the domain names they bought at the auction.
To help figure out a word's potential value, they see how many hits it will produce using Google. The first guys did really well then it became more difficult."And expensive.
Goldberger's entry into the business was unorthodox to say the least. sued him, alleging trademark infringement after Goldberger registered esqwire.com, which resembles one of the company's magazines.
The two sides eventually settled and Goldberger, a lawyer, was allowed to keep the name.
"Just owning a domain name as an investment, I don't see a problem with that."Anthony Malutta, a lawyer who specializes in trademark law at a San Francisco law firm, sees fewer trademark infringement cases thanks to improved laws."Trademark law involving domain laws is much clearer and much easier to understand," he said.
"It's pretty clear that registering a domain name that corresponds to somebody's trademark is actionable.
Most the sites are lucrative for their advertising dollars.