Pumping Up The Domain Name Speculation Bubble
from the buy-and-hold dept
A few weeks ago, USA Today wrote about how much money there was in domain name speculation. Now, the same author is taking a look at the people behind the business. They view the business the same way a lot of people view real estate investment, that it’s as easy as buying a property up, sitting on it, and then — voila — selling it for more later. As we noted before, there seems to be a total lack of skepticism about the strength of the market among the participants and by the author of the article. There are trends that may undercut the value of the market such as greater use of search engines (are people still just typing in clothes.com when they’re looking for an online clothing retailer?). Also, ICANN isn’t slowing down on approving new domain name suffixes, each time diluting the value of the existing ones. Perhaps their naiveté is actually a shrewd business strategy. Almost any time a domain name speculator is interviewed in an article, they seem to go out of their way to talk about how easy the business is and how anyone can do it, which sounds like a tacit invitation for fresh fools to keep bidding domains up. As with anything else, anytime you start hearing how easy it is to make money, and how anyone can do it, it pays to be cautious. Hmm, is there any way to short domain names?