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pizza.com Sold For $2.6m
f8d noted a beeb bit on the fact that the pizza.com domain name was sold for a ridiculous 2.6m bucks. Can there be a bubble and a recession at the same time, or do the two cancel each other out like Penn & Teller?
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Your problem is that you are too smart to understand the business model.
I am a webmaster and I run a few high traffic web sites. I see people hitting my sites all the time who type in www.mydomain.com into GOOGLE rather than their address bar.
Not to mention the search engine possibilities. While having pizza.com does not guarantee that you'll be #1 for the search term "pizza" it will help a lot. Especially with the PR it's getting it wouldn't surprise me if it's already #1 due to all the news sites linking to it.
Also, while I am not a domain squatter, I have read up on the business model. It's not uncommon for people to type things like "bubblegum.com" into their address bar just to see what happens. I heard that the guy who owns bubblegum.com or gum.com or something makes a grand / DAY just having a spam page up (might be a myth but imagine having a few thousand such domains making SOMETHING every day even it's pennies).
So yeah, 2.6M for pizza.com is a steal, and it's pennies for a big chain like Pizza Hut. And as for your "it's still going to cost something in advertising", assuming it is a big chain that bought the domain, all they have to do is change their flyers and tv ads so that instead of "pizzahut.com" it prints "pizza.com". Their ad budget stays the same.
If it makes you feel any better, FTFA: "Mr Clark registered the domain name in 1994..."
*sign*
1: learn the difference between profit and profit margin.
2: "millions of people" are not getting losing their homes. You're off by an entire order of magnitude - which makes it pretty clear that you're just spewing hyperbole
2.a: The majority of the people who will lose their homes *lied* on their applications. That's right. They lied so that they could get a $300k McMansion on their 30k salary. Had they been honest, they couldn't have gotten that big a loan, but then they might have had to *gasp* live within their means, and we Americans just can't have that, now can we.