Is the Domain Industry Like a Ponzi Scheme?

[VisionEdger]

I personally feel that the domain industry is crooked to the nth degree & is manipulated bigtime by the insiders who manipulated the values to create these outrageous prices that only the big dogs can afford, pricing the market as they see fit.

It's like a giant ponzi scheme in a way or some form of scam, possibly not necessarily a ponzi by definition exactly, but still one where the people who made the industry runs it, regulates it & profits off it takes your $$$ then gives you back a pittance or less if they must.

Come on folks you are part of one of the biggest scams in online history & we have all fell for it, imho.

Sure alot of normal people make $ on domains at some levels like many scams but who is really profiting?

Look at the big dogs at there big domain conferances, in lavish luxury hotels on jets & yachts, all tanned up with hot women & hotter cars, living the high life blabbing on & on in their blogs about how much $$$ they & all their domainer cronies make & how great their lives are from selling domains to their buddies while you are sucked in to their web. I am referring to the capitalist domainers who do it for control, power & prestige & just like any other industry doamining has its psychopaths too remember!

Its another industry that needs whistelblowers to come out & reveal the REAL truth. One day someone with the balls will tell us the truth what's really going on but why kill the golden goose if they can make this type of $$$ sitting on their collective butts making such outrageous $$$ on words for gawd sake!?

Big $$$$$ businesses like domaining has its dirty secrets like the rest of them & I want to hear these secrets.

Dont you???

:bah:

 

[SpiderHunter]

Its similar like a ponzi but there are differences, a ponzi has value only because of new members, the industry and domains have value on its own.

MLM - multi level marketing is also similar to ponzi but its not a scheme.

 

[interestedenough]

I truly think of domain names like an abstract form of real estate:

1. At first very cheap: Reg fees for domains = taxes for real estate
2. You can make your property make enough to pay for its taxes: You plant corn in your lot, or you park your domain
3. It is all about location: You have rich people move next to you, your real estate property gains value... your domain keywords get traction, your name gains value.
4. Almost always people get greedy and then bubbles happen. Same for domains as for real estate.

NOW, take for example something you can actually hold in your hand that many look as extremely valuable: GOLD. What the heck is gold good for? You spend a bunch of money digging it out, so that you have to spend a truckload more of money to place it back underground (a lot of the gold is saved in underground forts by the government). Is gold a Ponzi scheme? Heck yeah, how long has that ponzi scheme been around? for thousands of years. To me the value of gold is limited to its electromagnetic properties, maybe to its biocompatibility, but that's it.

I see the value in domain names and real estate, I do NOT see value in gold. A good domain name (with appropriate branding) will make it easy for website users to remember your site, a crappy domain name will guarantee that they wonder around until they find your competitor's website.