It is very similar to a hot real estate market, except the investment is substantially less. While investing in real estate may cost hundreds of thousands of dollars, investing in a good name can cost as little as ten dollars. Some webhosting companies will even pay for your domain name registration if you host with them for a year. The problem lies in finding domain names that are available for you to register. Domain names are being purchased at a furious rate each day.
People pay their two year registration fee, hoping to proclaim their Internet existence.
Two years later, they have done nothing with their domain name or have given up on their website after a few months. They disregard the notice to renew their domain name. These domain names are available for anyone to register. There can be over 200,000 domain names that expire every day. A majority of them are not worth looking at, but out of these daily dropped domain names, there are hundreds that are desirable.