The problem with domains is that most people have too many of them. Like other things we accumulate, every registered domain means something to us. Oftentimes, it is the dream of that project you wanted to do (but never did). We keep each dream alive by holding onto the associated domain with the hope that one day, it will come to fruition. But the hard truth is that there aren’t enough days to do it all, and most of these domains are garbage to begin with. So, why is it that when domain renewal time comes, we make the same promise we did the year before, get out the credit card to renew, and once again continue to fuel the obsession? There’s more to it than you think.

FOMO (“Fear of Missing Out”) is a primary driver amongst domain owners. If a domain is seen as valuable, memorable, or unique, losing it may trigger anxiety and the drive to renew it, even if you don’t really need or want it. Thoughts like “What happens if you drop a domain and someone else buys it?” and “What if a competitor takes it?” are irrational thoughts driving anxiety and the urge to renew rather than a rational decision based on your current needs. Most domains only have value to the person who registered them. There are exceptions, but if you openly registered it (and didn’t buy it from someone else), odds are you’re the only one who wants it, and it has the same value you paid at registration.

Only premium domains with high value sell for big money. Think about chat.com, which sold this past year. You can probably guess the acquirer, but it has obvious value on its own. The standard joke amongst the big-league domainers is that “if you have to tell someone it’s a domain premium, then it’s not premium.” That is because sellers grossly overvalue their domains, delusional that their below-average domains are premium. [Continue Reading in XBIZ Magazine]