Are drop prices inflated?

[actnow]

...most 'big players' are no different that compulsive gamblers or rare stamp collectors who are into the thrill of the chase. for them the outside world does not exist. it's not about end users, it's all about them and their inner circle. the latest thrill is in competing who will overpay the most. just because they feel like it. it's the journey they enjoy, not the end. you would be ill advised to 'model your business plan' after them. remember, most 'big players' are bored, white men well into the middle age crisis. this is their rediscovered life purpose. without it they are just anonymous nobodies with bad breath, receding hairlines and pot-bellied guts.

You know you can get busted for smoking that stuff.

Most of the comments sound like "sour grapes" that they can't play in the sandbox
with the big boys.

Personally, I don't think any 3 letter .com, .net or .org should sell for more than
$ 100. But, I want to be charitable so I will pay $ 150 for them.
:-D

Bottomline, if you think the big boys are overpaying for the 3 letter domains, then don't bid against him.

 

[Chappy]

I certainly appreciate everyone's views. I only started in this business 1 month ago and have gathered all my knowledge from the forums. Still a lot of research to be done.

I will continue to monitor the drop sales prices.

 

[mole]

It seems that with the recent dropping prices of Google shares and increasing consciousness by the business community for PPC fraud, the auctions are already showing signs of a softening.

Nonetheless, domain names are an excellent avenue for money laundering and tax deductions, and that will always help keep prices perky.

And yes, egos do play in the auction game big time. It's a grown man's way of saying "my daddy is bigger than your daddy".

Nothing more, nothing less. The truely smart investors took out the best names years ago for a flip.

 

[linkdomain]

Another reason why "big players" overpay for crappy names is for tax purposes (notwithstanding that many of them are on the run from their respective tax authorities). I am by no means an expert on this issue but I know enough to tell you that domain purchases can be claimed as tax deductible "business expenses" and what have you.

i would be careful how i treated the cost for the acquisition of a domain. i would treat it as the basis when i sold the domain. i would expense registration fees and other realated costs.

IRS

Domain name information can be obtained from InterNic. InterNic is the directory service under contract with U.S. Government to register and track domain names. InterNic’s registry includes the name, address and phone for the registrant, the billing and technical contact points, the host site name and its Internet Protocol (IP) address. Domain names may be acquired from domain name brokers. Third party domain name brokers gang register domain names :-D with InterNic for a nominal fee on the speculation that the name may appreciate in value. The resale value may exceed several hundred or even several thousand dollars. These names are tentatively believed to be capital in nature with the cost being amortizable.

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The tax treatment of the following items may result in potential tax issues. Many of these potential issues boil down to capitalization versus expensing and timing of deductions. The tax treatment of these items is still under consideration by Counsel and issues involving the tax treatment of these items and online retail should be referred to the E-Business & Emerging Issues staff for assistance.
Business Start-up Costs (Internet Business)
Acquisition of Domain Name(s) and Website Development Costs
Acquisition of Hardware
Acquisition of Intangibles, including Costs of Production of Literary Content, Graphics, Sound or Video
Acquisition of Software and Software Development Costs
Lease Expense
Catalog Costs
Research & Experimental Expenditures and Credit