What's the catch?

Selling/bidding on domain names

[humandesigner]

Hello,

I know I'm very late but I've just discovered that there are guys who sell/bid on domain names at crazy prices on domain auction sites.

What I don't get at all is the reason why people prefer to pay big bucks for a so-so domain name when they could get a far better one for about 8 USD as long as they use their brain a little bit and try to be creative.

So, I ask : what's the catch?

[Webwork]

The catch is that a lot of bidding is shill bidding or sham bidding.

The other catch is that if you don't really know the business what may look like a silly name could actually have value: IBL traffic, Ovt+ext value, etc.

If you know what those last 2 terms mean, and you are seeing domain bidding that is not correlated to those 2 criteria, then you are seeing stupidity in action. Chances are the stupid bids are never paid. Just shill or sham action or crank bidding.

[humandesigner]

Thanks for your reply Webwork.
That's interesting :)