MTV VJ Adam Curry bought the rights to the domain name MTV.com way back in 1993 when barely anyone gave a damn about the Internet. Fast forward to a few years later when people did start caring about the Internet, and MTV had to take Curry to court and shell out a huge wad of cash to get the rights to the name.
And that's the story of how buying an Internet domain name before the person who might actually need it has a chance to became a way to make money on the Internet. Now, there are people who do just that for a living. If a bus crashes into a Waffle House in Louisiana, someone will own the domain name LouisianaWaffle- HouseBus.com four minutes later and then resell it to you for five times the price eight minutes later.
While this can indeed be a savvy way to make a few extra bucks, it's important to not let delusions of what kind of financial windfall you're in for cloud your judgment when setting a selling price. For example, prior to joining Cracked in late 2011, I was the managing editor at a Playboy-owned website. At some point during my tenure there, it was revealed that someone was posting all of our content on a site with a name identical to ours, except with ".blogspot" inserted between the name and the ".com". It's been approximately never since anyone actually read a Blogspot site, but still, you don't want people just posting your shit freely without consequence.
Seriously. Don't do it.
In lieu of setting up an actual fight somewhere, we had Playboy's legal team swing into action to demand that this miscreant stop stealing our stuff. As a gesture of goodwill, we also had them inquire about maybe purchasing the Blogspot domain name from him. Not that it was of any use to anyone, but it's the kind of thing you could envision chaining up in your basement so you can point at it and laugh whenever you're down there. Like that retarded child we wrote about taking care of back when Cracked was staffed exclusively by crazy people.