It's not just the TBR, GoDaddy auction prices look like retail these days... similar to most other asset classes from crypto to real estate, thanks to central banks printing trillions there is a lot more money chasing the same amount of stuff.
In my opinion almost all these traffic domain purchases are unprofitable. Two years ago the prices were less than half what they are today, and Google is getting better at detecting these sort of things.
Yes, they typically replicate the original site so Google keeps ranking it for related searches, and then they try to monetize the visitors (usually via affiliate programs for online gambling or other "make money" niches such as forex).
Fun fact: if you put a low BIN price on a domain that gets...
Gambling affiliate marketing.
For example: london2024.ca - sold for close to $1k at WHC earlier this month, now being used to promote online casinos & sports betting sites.
I made the hot pick this week too with my drop Arum.ca lol... not a bad name, but I'm trying to invest in fewer but higher quality names to keep the cost of annual renewals in check.
You'd never know the Canadian economy is on the verge of tanking when looking at these recent TBR prices, but I suppose one could argue domain assets are a good hedge against the coming stagflation.
I would be surprised if itbusiness sells for less than $10k (even I would pay $5600)... it's backlink profile is beyond amazing. You could easily make your money back in a month or two just selling links to SEO companies.
The #1 reason I invest in .ca is because it's truly exclusive to Canada (which I hope doesn't change). As online fraud continues to increase, as the Internet continues to get divided into spheres of influence (USA vs. China) etc I feel like Canadians will continue to trust .ca