This should not really be surprising, since 80% of all small business fail, and the Internet is full of small businesses - particularly in the domain sales market.
There have been, and will continue to be, many small businesses who have never written a business plan, have no idea what it really means to run a business, and will either string out their Internet business until they are out of college and get a real job, or if they are lucky, until someone else buys up their customers and adds them to their potential revenue stream.
I recently exchanged a number of emails with a domain reseller who want out. He wants $20 a domain for each domain currently registered through him. I told him not a chance, I'll give him $3 a domain. He thought I was insulting him. I was simply quoting him a price that makes economic sense to me and my business plan. There is no guarantee that even 50% of his customers will renew their domains, and certainly not as much of a guarantee for following years. His business model has caused his influx of new customers to dry up. What's the business worth? These customers will most likely be shopping for a new domain management service very soon anyway...
It's not easy. It's not cheap, and it's always changing.