Why it matters
Investors hand-register names they think a business will want later, for the cost of a registration fee. It is cheap, but most names never sell. Buyers who want a good name should know that a hand-registered name has no real price history, so the asking price is a guess. Sellers should compare yearly renewal cost to the chance of a sale. Common mistake: registering hundreds of weak names and paying renewals for years. A hand reg only has value if there is a buyer who needs the name.
Source: icann.org