F1 Numberplates - Domain names

For those who wonder about the values of domain names and whether scarcity value really exists:

Fan pays record for Formula One car plates

A businessman has paid almost half a million pounds for the car registration plate "F1" - making it the most expensive ever sold in Britain.
Afzal Kahn, a Formula One motor racing fan, has fixed the £375,000 number plate to his 200mph black McLaren SLR sports car, which itself cost £300,000.
With VAT, the total paid for the plate by Mr Kahn was £440,625.

A number plate, let's remember is a pure vanity item. Yes it's unique, but it doesn't offer much in the way of return. It doesn't allow people to contact you, it has no way of earning you money directly, and it's only of interest to a small number of wealthy people and a small number of investors. It's also a very local thing. A premium UK number plate may look good cruising around Sloane Square but is unlikely to be seen in Monte Carlo, Wall Street, or Silicon Valley.

Domain names are different. For a start, the prices are still well under their true value to the market (and I'll come back to why in another post), so you don't have to drop £1/2 million on one just yet (although there are plenty at these prices if you like..).

But there are much bigger business propositions: people can contact you with a domain name, a domain name can earn you astronomic amounts of money with little or no effort (think how many people hit mobiles, loans, even secondary product areas such firebowls every week), and your buying circle increases massively, form domain investors, individual entrepreneurs and the business and marketing world - where the big money really is. Don't forget also, that a domain name is accessible to anyone on the planet with an Internet connection.