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For Sale Several reasons WLS will push the prices up.

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<<Point >
WLS will pull domain prices up but not for resellers.
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<<Illustration>
Consider a good name dropping and it gets noticed by hundreds of resellers and the wls is taken. The domain name holder will be called... several times. Several calls in a row will create an illusion of a big interest in the name and the seller will realize, and probably overstimate, the value of his domain. Thus the holder will not let the domain go any cheap.
However if a domain drops, and someone gets it cheap, it might be sold cheap as well. (imput - output prices relation)
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<<Elaboration>
Recall dnf.com case. The holder was called several times and was offered some nice amounts and he didn't sell. Y? Because he has no longer a doubt that his domain is on demand and it's now a matter of time till a buyer who can afford his asking price(which is completely unjustified), will come along.

Now recall thieves.com case. The domain was picked up for $100 by a smaller player who managed to order it on dropwizard long before it went on PENDINGDELETE status. He came to the forum and sold his domain for $1500, regardless of the fact that NW reflected a $5000 proxy bid! He got the name cheap and let it go for cheap.

Namemart.com is a similar story to thieves.com, however the domain was caught by SnapNames.com which uses the same wls concept. The name had approximately $4500 proxy bid which confirmes that this is a decent name, and like all decent names had to be backordered long before it went on hold. The fact that a smaller player have managed to backorder the name using the most popular backordering service before the bigger players did, illustrates that the dropcatching process was never and never will be fully monopolized.
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<<Substantiation>
There is no doubt that Buy Domains will have staff on the phone making 500 call a day to buy out all possible dropping and not dropping domains for whatever the reasonable (or not reasonable) price. In fact, this will help him to ultimately acelerate his strategy.

"Observers say it's 'absurd' or 'insane' for resellers to pay these prices and surprisingly Mann does not disagree. We actually think there is no longer any profit to be found buying new domains. We are hoping our aggressive tact will encourage more people to drop out of the market, allowing us and our customers a margin again from new acquisitions. Before you dismiss this as sheer lunacy, keep in mind that Microsoft took the entire browser market away from Netscape by giving their product away."
Ultsearch and others will fallow.

Frop what we have seen in the past it is clear that some names will actually drop, will be picked up by smaller sellers to whom they will cost $24 and who will sell the for cheap.
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<<Reistatement>
WLS will cause a considerable inflation in price for domain names, however it will still be possible to buy domains at wholesale prices.
<</>

Yakov
 
Dynadot - Expired Domain Auctions
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Deleted member 4749

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Originally posted by DNMole


And his costs ....

Well once they don't need to burn funds on having 10 registrars involved and once they don't need to bid thousands per domain on namewinner and pool, their cost will go down ...to the basement. The staff who makes research will still be in place and it takes only 2 secretaries with good communication skills ($15/hour) to make 500 calls a day (31 call/hour).

I don't see how their cost will be ultimately accelerated (inclreased), but I'm pretty sure they will expand their marketing department.
 
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