stupid people are trying to buy generic names for millions

[seeker]

I am 13.
I still know when a fart is coming.
yes, we all thought together how to best get by your strict requirements.
and , man, it was a looooonnnngggg one....
this gas is on you...

LOL

p.s.

I would be honored to be anything less than 40....
unfortunately, physics and its laws apply everywhere, so I cant attain your level and go one on one with you here... :-/

 

[Togoodhlth]

i am just wondering why people would pay 7 millions for business.com or 10 millions for sex.com or even more

if you think in a matter of investing and making money you can realize that

let's say around 60,000 person visits business.com per month and that's how it makes money

you can otherwise register 2000 business related domains and you can easily find tons of these names which receive 30 visits per month or even more
and redirect them to one main site

2000*30 = 60,000 visits ...same received by business.com

and you only pay 2000*7$ = 14000 $ per year

and it takes around 490 years to consume the 7 million dollars paid for business.com

is it a matter of arrogance and showing off..so they can walk everywhere and say yeah it is me who owns this name ..!!

some one please tell me i am wrong g

For me it would depend on the name. Not that I have anywhere near $x,xxx,xxx to spend on a domain but I have purchased the generic .com version of some of the products I retail and can use that as an example of why the .com version was a far better investment.
One of my sites sells "widgets". I bought "widgets".com for $xxxx. I also caught "widgets".net for $20 at enom and caught "widgets".org for around $30. I also bought/hand reg'd/ caught "wholesalewidgets".com, "Metalwidgets".com, "widgetsBusiness".com etc etc for $6-$30.
"widgets".com gets me about 500 uniques/day and all the others combined get me another 100+/- per day. From "widgets".com I earn an average of $2000/week net profit and from the others I earn approximately $200/week net profit or 10% of what "widgets".com makes yet based on the traffic of the other names I should be making double that based on what "widgets".com does for business. In my case there are not enough "widget" related domains getting the traffic needed to meet the traffic of "widget".com.
So for me spending $xxxx for "widget".com was a very good investment as it paid for itself almost immediately. When I was buying "widget".com associates thought I was an idiot.

Now imagine you buy movies (dot) com for $2,400,000. And lets say it gets 30k uniques/day and you are a large video store renting/selling movies. If you can sell a movie to 3% of the visitors and you net $3/movie sale you are netting $2700/day or $81k/month, $972K/yr. So in 2.5 years you have made more than your money back.
You may need to buy 100 other domains at $xxxx to get the same traffic but it would be less targeted and it will take you more time to aquire them. But no matter how you slice it movies was a very smart investment.

Ok, that's the best I could do for an example. There are many real world examples I can think of and many I have seen here on the forum. Remember when someone bought the kazaa related name and everyone laughed at what he paid pool for it? If I remember correctly he made his money back in like 4 weeks!