The Secundary Domain Market is a Giant Ponzi Scheme Pyramid

Posted by k | Posted in Uncategorized | Posted on 10-02-2010

Unless you’re an investor on top keywords domains, like sex.com, business.com or any great one word keyword dot com, with true marketable value and decent type in revenue, this post is for you: this means 95% of all domainers out there. So, why are you on a Giant Ponzi Scheme Pyramid?

  • 1.You’re buying air based on fantastic future promises
  • 2.You get in lured by the successful stories of others
  • 3.You’re fattening the ones on the top of the pyramid
  • 4.You can’t easily get out. (Liquidity trap: You can’t sell your portfolio at any time for the same value you get it)
  • 5.You try to get new blood to the pyramid convincing your friends how great the domain business is
  • 6.You end up selling air to others to cover your losses (And you might even enjoy doing it and keep going)
  • 7.You keep dreaming of being as rich as the religious mentor sitting on the top of your pyramid

Sounds familiar right?! This Domain Market Giant Ponzi Scheme main idea is to squeeze money from newcomers. Every new “revolutionary” platform serves only to better achieve this purpose. Firstly to the owners of those platforms, next to their friends and relatives and finally, while and if the scam is still convincing, to their network of interests.

Take for instance BIDO, don’t you ever think: “why are they listing this crappie name and constantly refuse to list mine’s”? Domainfest, Mardigrass, or the last platform everyone is blogging about: bargaindomains.com. The idea is to sell domains with huge discounts, like 90% off and even more. Excuse me, but, 90% off of what? 90% off of ESTIBOT valuations. Everyone knows ESTIBOT valuations suck big time, except newbies, of course. Another great example is eBay, being the latest trend there to sell IDN domains that look like English domains. That’s the ultimate fraud, I tell you. Just go to eBay and search for “IDN”.

Joel Comm recently spoke out the real truth about internet marketing:

My associate and I were stunned when the promoter told us that the attendees to his event were always looking for the next big thing and that it was like he was selling crack to them… providing their next fix. He made it clear that he didn’t expect them ever to make any money and he was fine with that

This is exactly what the top gurus of our industry think about you, yes YOU. Behind closed doors on those famous conferences. I bet one day we’ll have our “Joel Comm” revelation.

Therefore my advice is: when you buy a domain name, any name, for more than reg fee, you’re being swindled. You can buy a “great” name for $100 and never, ever on your life be able to sell it again. In the meanwhile, you will be supporting ICANN investments on the stock market and Bob Parsons’s Playboy girls, with the reg fees you’ll be adding every year.

Don’t buy the domain names are like virtual real state bullshit. Would you pay billions to own “Pittsburg” (Real Estate) if you could own “PittsburgAB” for $8, and construct exactly the same house (website) and have almost the same number of people visiting? (Same Rank on Google) I know, I know exact domain match is a big plus, but my point is that IT CAN be done!

Buying .com domains was a great investment to enter, in 1996. Buying IDN domains was a great investment to get in, in 2001. .mobi or .me domains were great investments to get in, if you were a partner on the company launching them. If you let those times go, don’t go chasing ghosts, and don’t buy the crap talk.

So, why am I domainer, you may ask. Go read this blog’s title: Black Hat Domainer. Keep tuning in, as I’ll be posting next how you should successfully ride this highly distorted domain market tide. Highly distorted markets are markets were you can profit a lot, if you know how to properly do it. The level of distortion is proportional to the number of people who have real awareness of its distortion. Welcome to the other side. Most top domainers are black hats. Halvarez rings a bell?

Comments (11)

  1. Somewhere there are new opportunities breaking as well. Brand new fresh as domains in 1996 opportunities. But as long as I’m this focused on domains I’m not out there looking for them.
    At least these last few years of domaining may have taught me how to spot a breaking trend.
    Looking forward to your follow-up post. Interesting.

  2. This definately goes on in droves. There are still opportunities in land rush releases of new tlds and Ive made a bit that way, but 95% of the time buying domains is air buying. Standard.

  3. you’re right that you can buy an $8 domain and get it to a similar ranking then the exact match, but head to head won’t the exact match domains convert better ?

    $8 domain + work/time/money = page 1 or
    $5,000 domain + less time/work/mone = page 1 + consumer trust and confidence

    different paths for different people

    just my 2cents. I’m no black hatter tho

  4. Great post!
    It’s really hard to read though. Would be great if you could change the font color to white.

    Cheers!

  5. The community at Bido selects what goes to auction via our “Vote For Profits” program. It’s how we filter inventory, we crowdsource it. The community votes on the domains that are submitted in relation to the domain’s BidoPrice. If the domain sells, the people who voted for it earn a percentage of the sale price. This selection process ensures the domains that make it to auction are “In-Demand”.
    More info at these links:
    http://www.bido.com/VoteForProfits
    http://www.bido.com/Info/BidoPrice

  6. this sounds like a lot of puffery to me.

  7. Jarred: Yes, NOW they are doing it. It used not to be like that.

  8. Your so clueless about domains I don’t even know where to begin.

    It sounds like you are just frustrated by some bad purchases.

    Buying domains and making a profit is a skill. It is not something you can just start doing and necessarily make money immediately. It takes a lot of mistkaes before you recognize the valueable domains from the bad ones. And there are many domains that look great, but really are bad…..I call those fools gold domains.

    Anyhow, you are totally wrong sir.

  9. [...] I’ve alerted before, The Secondary Domain Market is a Giant Ponzi Scheme Pyramid and this is just a clear evidence to add on. Read More (0) [...]

  10. Domains value is not only in the name itself but things like links and trusts. An EMD that’s never been used on a website is useless, however some dhjfareiwodsfahie.com with thousands of trusted links are priceless. Just my 2cents.

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