>I argue there isn't any inherent value in a word incorporated into a domain
>name.  It is what is done with the domain name that creates value.  If
you
>just sat on that domain name you paid $40,000 for for a few years without
>doing anything with it, how much do you think it would be worth in say
2016?
>What is it worth when you stop selling the product related to the name?

Very good questions.  Questions I would suggest would be best answered by
a freely-operating secondary market.

>What does a startup company do when it finds that to get a name related
to
>their products the current price is $40,000 cause so many other companies
>with
>deeper pockets have been paying such prices?

How about, they think of a DIFFERENT name?  Have a look around, Darryl.
 There are TENS of MILLIONS of .com domain names registered and yet there
are new businesses appearing every day with brand new domain names...most
of the 'hot Web 2.0' sites (flickr, del.icio.us, digg etc etc) have all
managed to create new, memorable and valuable brands within domain spaces
that have many more names registered than .com.au.

Jon



>-- Original Message --
>From: "Darryl (Dassa) Lynch" <dassa&#167;dhs.org>
>To: "'.au DNS Discussion List'" <dns&#167;dotau.org>
>Date: Thu, 20 Jul 2006 19:42:36 +1000
>Subject: Re: [DNS] Secondary Market
>Reply-To: ".au DNS Discussion List" <dns&#167;dotau.org>
>
>
>
>|> -----Original Message-----
>|> From: dns-bounces+dassa=dhs.org&#167;dotau.org 
>|> [mailto:dns-bounces+dassa=dhs.org&#167;dotau.org] On Behalf Of J 
>|> and J Miller
>|> Sent: Thursday, July 20, 2006 11:39 AM
>|> To: .au DNS Discussion List
>|> Subject: Re: [DNS] Secondary Market
>|> 
>|> >  I don't call having to pay $40,000 for a domain name as 
>|> was mentioned on the list, a reasonable price.
>|> Dassa, well to us it is a bargain. Of course we don't have 
>|> to pay that much. We choose to because it would be a good 
>|> investment. 
>|> I don't intend to be rude, but you obviously don't 
>|> understand that some names have an "inherent" value. Here is 
>|> a good article that "considers the valuation and pricing of 
>|> domain names."
>|> http://www.caslon.com.au/domainsprofile6.htm 
>|> <http://www.caslon.com.au/domainsprofile6.htm> 
>
>I argue there isn't any inherent value in a word incorporated into a domain
>name.  It is what is done with the domain name that creates value.  If
you
>just sat on that domain name you paid $40,000 for for a few years without
>doing anything with it, how much do you think it would be worth in say
2016?
>What is it worth when you stop selling the product related to the name?
>
>What does a startup company do when it finds that to get a name related
to
>their products the current price is $40,000 cause so many other companies
>with
>deeper pockets have been paying such prices?
> 
>|> The sooner the namespace opens up the better it will be for 
>|> everyone. Our company would not want to invest in developing 
>|> the namespace if the market was not mature. 500,000 .au 
>|> domains registered! The Policy has served well in past but 
>|> now it is too restrictive. 
>
>500,000 isn't that big a number in the overall scheme of things.  Numbers
>can
>change very quickly.  There may be some need to refine the policies and
rules
>and allow some more freedoms but I really can't see opening things up so
>the
>market is a total free for all is justified.
>
>Darryl (Dassa) Lynch 
>
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