I really don't get where squatter prices come from. It's one thing if a domain is in use, has a history of high traffic, and has high potential through name len

I really don't get where squatter prices come from. It's one thing if a domain is in use, has a history of high traffic, and has high potential through name length and/or brand potential. But a regular old squatting site that barely gets hit except by crawlers and link farms? I think the problem stems from an unregulated marketplace. Don't get me wrong, I'm not asking for domain reselling to be regulated, I'm just saying the consequences of the reality of the situation is that somewhere along the way it became okay to pay tens of thousands of dollars for a $10/year commodity. Because of that, everyone thinks they can strike it rich by being greedy. Personally I think a new model is needed for a majority of domain reselling. I've been working on a model that prices regular domains at cost to the owner times a premium factor. For instance, if you had a domain for ten years at $10/year, and multiplied it by a premium factor of not less than 1.5 and not greater than 3, the domain would sell for between $150 and $300. Not bad for a $100 investment. The premium factor would be calculated based on traditional characteristics (length, traffic, etc). Don't get me wrong, I've been asked by buyers for domains I own and I'm not doing anything with and I see the dollar signs. But at the end of the day, I'd actually sell a domain using the above formula. And when I'm buying domains, it doesn't take that much effort to find an alternative to a taken domain... just use some imagination.