Cappuccino,
Have you been drinking too many cappuccino's this morning. You sound a little hyper. :-D
The pricing of domains have been getting stranger EVERY WEEK.
Part of the auction process causes the prices to be high. The heavy hitters do
not often buy on the secondary market. (DNF, etc.)
They know they will only have one opportunity to grab it.
Then, you get into the p*ssing battles between the major players.
For example, Cayman works very hard at bidding against Marchex and BD.
BD use to ignore him and let him win. Now, that an investment group is involved
with BD. I see BD being just as aggressive in securing new domains.
I see Marchex bidding aggressively for a couple reasons. I think the bidding manager
might be new to the business. And, also they have enough cash to cover any errors
in purchases. Plus, their strategy is to build a larger inventory base.
Then, you have a couple of the old timers bidding because they feel this might be the
last chance at these "discounted" prices.
Overall, I believe all of the major players feel that the price of domains are going to
escalate even more than they have. And, they don't want to miss the buying opportunity.
Also, just because the domain does not have traffic or overture numbers does not
mean that it doesn't have value. For example, I have one domain that I'm positive is
worth $ 50,000 plus. And, it gets very little traffic. But, I sure a major corporation
would pay that amount for this generic domain.
The branding potential of domains is very important.
For example, GlobalGroup.com went for $ 6,100 this past week at Snapnames.
(I didn't win it.) It gets zero at overture. But, I'm sure a major corporation would
buy that for much more than $ 6,100.
Cap, I have a feeling you are in the southern Fla area. 20 yrs ago, you could have
bought prime property there for a very, very low price compared to today.
Without going off on a tangent, what true value does a diamond or gold have?
Part of the value is in the end product.