As many of you know, I've been an outspoken critic of PPC valuations for domain names. It isn't that I didn't understand how it works, I just believe it is least possible value that could be assigned to a domain name, and therefore most useful for low grade domain names that have little or no potential for resale to a viable business. I believe the friction in thinking is only a representation of the differences between a click business and a pure play domain name investor.
More specifically, click businesses seek to make an income that can be disclosed in their quarterly income reports; a long-term investors seeks domain names that show the promise of being desired by real companies that have a financial stake in their ability to brand their product or service.
Click business owners are most likely interested in domain names that will generate an income this month to pay their bills. An investor may be seeking a safe haven for investment funds - funds that may not be needed for several years. In both instances the owner purchases domain names she thinks will meet her financial objectives. I don't think one way is right and the other way is wrong, I just think they are starkly different - different propositions that each have their own unique risks.
Source: DN Investor Blog
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