I see a active-domain offering $2.95 domain registrations in their website .

Who register a domain in this site ?
http://www.active-domain.com

'..Register domain name now from only $ 2.95 / year*..'
( Only .info domains are $ 2.95.. )

> www.active-domain.com/price.htm (http://www.active-domain.com/price.htm)

Yes, a lot of companies are offering 2.95 info domains now. What I'd really like to see is some registrars offering .com's for $2.95. That would really shake up the market(except for the fact that they'd be losing about $4 per domain)

some people are selling at $3.99 and making $3+ loss per domain considering merchant fees and other staff/office/etc..

Yes, but I think only Big companies are mainly working on that strategy

yeah, they can always include the loss in the marketing budget

Unfortunately, the shock value of such low prices is slowly disappearing.

At first, the pricing of a domain at $6.99 or less generated a huge response around the internet, and essentially marketed itself. Now that it is relatively commonplace, it just doesn't have the same effect. Still, I can guarantee that people will be pushing lower and lower into loss leading territory just to generate the exposure it gives.