domainprotector.com.au - what a dodgy tactic!

[netik]

Do you guys know domainprotector.com.au?
It seems their business model is to track high value domain names on netfleet and then search for the businesses that rank for the phrase and try to sell them the domain which is still not available...
I got an email from them offering their services:

"The domain name xxxxxxx.com.au is listed in an auction tomorrow and we can place a bid of your behalf.
If this is of interest please call or email me to discuss.
In most cases we can secure a domain name for a minimum bid of $197 + GST."

You win domain for $10 and then sell it for $200. Nice profit

 

[zhenjie]

Haved received this and didn't like the business model personally.

I believe could be a member here on the forums. Business is business.

 

[findtim]

seen it a few times, had clients call me about it a few times, I have 2 thoughts on it

1) it apparently breaks the "buy for the purpose of selling" type auda script, but if they don't hold a portfolio of their own then whats auda going to do?

2) they have seen a gap in the market, NF do outbound cold canvasing, these guys are taking a chance and making a profit, they are spending time doing it so the profit just converts to "an hourly wage"

the upshot is businesses might just get a valid domain for their business. today is a good day for this conversation as I see many $10 bids on motelgoldcoast etcccccccccc , so you can't tell me that in ALL those towns there are people who own a motel that are also members of NF ? so whats going on?

i'm sure many of us "phone a friend/client" when we see a domain that might be of interest to them, the only difference is we don't make profit......... do we

$197 + GST = $10 + COR then another COR + GST, + your time in research, then maybe a phone call, an explanation to the prospective buyer and THEN you might have to do 6 phone calls on 6 different domains to finally get a YES.

I don't think its a real good profit margin

tim