Why LLLL.com Domains Will Grow in Price

[DomainMagnate]

New long article here
Why LLLL.com Domains Will Grow in Price

Check out some interesting facts I've researched

Includes analysis of some of the biggest LLLL holders and busting the common myths of why "LLLL.com will fall"

[dcristo]

If your willing to sit on LLLL it could work out, but IMHO poor quality LLLL is a bad investment and just a reseller bubble. Only time will tell.

[DomainMagnate]

Originally Posted by dcristo

If your willing to sit on LLLL it could work out, but IMHO poor quality LLLL is a bad investment and just a reseller bubble. Only time will tell.

Don't just repeat what some other domainer said.. how is that different from crappy LLL.com? Many predicted those would fall too back in the days. Poor quality for one can be premium for another. It's all a matter of perception.
Why would they fall, how can it happen?

Read the article for a full guide and refers to all these questions..

[dcristo]

Originally Posted by Michael_Goldman

Don't just repeat what some other domainer said.. how is that different from crappy LLL.com? Many predicted those would fall too back in the days. Poor quality for one can be premium for another. It's all a matter of perception.
Why would they fall, how can it happen?

Read the article for a full guide and refers to all these questions..

When I make a comment it's my own opinion I am expressing, I am not just reiterating what some other domainer said. Poor quality is exactly that, a poor name, anyway you look at it. ie. No acronyms, non pronounceable etc It's only been recently that prices have started to skyrocket for LLLL, poor quality LLLL have taken off with the hype so yes there is every chance they could fall.

[DomainMagnate]

Adam posted on another thread that he sold zwas.com and zzzq.com for each over 5 figures to end users, are these two poor quality? To us, domainers, yes. But end users think different.

You can say that for example tnmp.com or any quad premium for that matter has higher chances to find an end user than qjyv, true, but that's why the high difference in reseller prices.

Now would there be more potential end users to LOMN.com, than to qjz.com? Most likely. .. still the later is worth about 10 times more.

How many domains have you sold to end users? For me it would be a tiny portion of my sales.

Number of .com registrations grows and so do the prices for short domains. This is just a natural growth in the domaining space.

The prices for LLLL's won't just fall by themselves. What possible reason can there be for that to happen?

[replic8te]

Interesting article. I didnt know who the big cheeses were cept for Adam.

[kamil]

Difference between qjx.com and qjxv.com ?

1. You cant say bad things about qjx.com while you can get the hell out of qjxv.com 24 times a day

2. There are 10 buyers for qjx.com and surprisingly there are 100 others who can afford to buy qjxv.com (doesnt matter who is buying as long as I am making profit)

3. There are 26 times more qjxv.com than qjx.com but I am still thinking 26 times to buy qjxv.com for the 1/100 price of qjx.com

4.If I can sell one qjxv.com and renew five other LLLL.coms domains why would I let them drop? one has to die to save other 5 lives in terrible situation and thats it


6. I have seen some people paid for the short and rare (not available to register) yahoo chat id let alone a rare domain name

etc etc.

[dcristo]

Originally Posted by Michael_Goldman

Adam posted on another thread that he sold zwas.com and zzzq.com for each over 5 figures to end users, are these two poor quality? To us, domainers, yes. But end users think different.

zwas.com is pronounceable and it looks like an enduser snapped it up.

zzzq.com is a parked page so it's hard to understand how this sold for 5 figures.

[hugegrowth]

Nice blog post on LLLL.com why they will rise in price. I only own one, and sold another with all premium letters last year for about $120 (should have held). They are short, .com's, and good for acronyms. The demand for domains by all sorts of users will keep increasing over the coming years and imo is enough to suck a lot of them up.

The problem I had with accumulating them is you don't know which ones have the right letters for re-sale, plus by the time I got wind of it the only available ones to reg had 'crappy' letter combinations, though I know some may have been gems in some countries or languages. Anyone who was regging premium letters when they were availalble will make out great. Good luck to you all who have them.

[jmizel]

While it's easy to call this the "greater fool" theory in action, I think that the fact that there is scarcity at play will keep the prices up. People want things that are restricted in supply, it's that simple.

I have no idea why these increase like they do, most have amazingly unresponsive traffic and make little or no sense as business names. It's interesting that people pass on keyword rich domains with traffic to buy a bunch or LLLL.com domains, but nobody can deny it's a real market.

[Acro]

I have to agree that the bubble will eventually burst, simply because thousands of LLLL .com domains were registered en masse by the same speculators, a lot of them for 2 years. Unless there is some substantial revenue from these names (e.g. reg fee plus) a lot of them will be allowed to expire. Of course, this does not mean that quality letters or meaningful/aged LLLL .com's are facing the same fate.

[Devil Dog]

Originally Posted by jmizel

I have no idea why these increase like they do, most have amazingly unresponsive traffic .......

It's all one big pyramid scheme I tell ya.

[DomainMagnate]

Originally Posted by jmizel

It's interesting that people pass on keyword rich domains with traffic to buy a bunch or LLLL.com domains, but nobody can deny it's a real market.

Maybe because they sell for over 10 years of revenue for the real generics? And you don't call that inflated

Originally Posted by Acroplex

I have to agree that the bubble will eventually burst, simply because thousands of LLLL .com domains were registered en masse by the same speculators, a lot of them for 2 years. Unless there is some substantial revenue from these names (e.g. reg fee plus) a lot of them will be allowed to expire. Of course, this does not mean that quality letters or meaningful/aged LLLL .com's are facing the same fate.

Acro, Will the same happen to LLL.com and LL.com? Did you predict this 7 years ago for LLL.com as well?

Once again what many domainers don't realize is quality is very relative. 'q' is a bad letters for us, but it maybe good for the Chinese. You say quality letters will be ok, then where do you draw the line. MLOP is good and XQJW i bad, right? what about MJPZ, or YNHJ or PLVT? You can't just say anything with 2 bad letters will get dropped and the rest will have value, that simply doesn't make any sense.

It's an easy excuse to say they will get dropped as they have no value or traffic. But if you look deeper it doesn't make sense. Why would anyone drop their LLLL.com's?

[CyrusL]

Originally Posted by Michael_Goldman

Acro, Will the same happen to LLL.com and LL.com? Did you predict this 7 years ago for LLL.com as well?

Using the same logic we could say that poor quality 5L, 6L, 7L, ect will all gain value in 6 year intervals when we all know that pattern can't go on forever. I think you would do better to make arguments relative to LLLL.com rather than comparisons to shorter domains.

[DomainMagnate]

Originally Posted by CyrusL

Using the same logic we could say that poor quality 5L, 6L, 7L, ect will all gain value in 6 year intervals when we all know that pattern can't go on forever. I think you would do better to make arguments relative to LLLL.com rather than comparisons to shorter domains.

Yes with the same growth rates in domaining space that we've seen over the past 7 years of course the 5 letters will have some value in another 7 years. Do some math bud, but 7 years is a lot and that's too long to try to predict anything.
I don't quite see your point
Again why do you say zqw.com is worth $7k, but zqwj.com will drop?

[CyrusL]

Originally Posted by Michael_Goldman

Yes with the same growth rates in domaining space that we've seen over the past 7 years of course the 5 letters will have some value in another 7 years.

And then 6 letters, and then 7 letters, and eventually 15 letters and 20 letters and 100 letters? It cannot go on forever so I would make your arguments relative to the properties of LLLL.com rather than direct comparisons to the growth rates of LLL.com.

[DomainMagnate]

Originally Posted by CyrusL

And then 6 letters, and then 7 letters, and eventually 15 letters and 20 letters and 100 letters? It cannot go on forever so I would make your arguments relative to the properties of LLLL.com rather than direct comparisons to the growth rates of LLL.com.

I've made my arguments on both in the post, but other than mocking the lengths I'd like to see your arguments.

It won't go on forever at this rate simply because the world population and thus the internet population can't keep growing at the rates domaining space was growing in the last 7 years.

But while probably half of the people on the planet are connected to the Internet, do a small research and ask your 10 friends (not domainers) what do they know about domains? I did and while some of them undersand and can explain what a domain name is they don't realize it's a pretty big market. So there is still space for it grow..

[hugegrowth]

There is still lots of growth to happen in domain investing.

When people you know come up to you and say they're thinking of investing in domains, or have started investing, and they've previously had no clue of the industry, then you'll know it's getting mainstream.

The only time domains come up in regular conversation with people I know is if I've started the conversation.

[CyrusL]

Originally Posted by Michael_Goldman

other than mocking the lengths I'd like to see your arguments.

I'm pointing out a fallacy in your logic supporting LLLL.com, not making an argument against LLLL.com.

Originally Posted by Michael_Goldman

It won't go on forever at this rate simply because the world population and thus the internet population can't keep growing at the rates domaining space was growing in the last 7 years.

Yeah exactly, thats why saying ZJVX.com will attain end user value because ZJV.com did and ZJ.com did is a fallacy.

Originally Posted by Michael_Goldman

ask your 10 friends (not domainers) what do they know about domains? I did and while some of them undersand and can explain what a domain name is they don't realize it's a pretty big market. So there is still space for it grow..

I think the domain market is fueled by end user sales, not more resellers looking to get rich quick and inflating reseller prices. If the domain market is to grow, it will be because of the growth of the internet and online commerce, not laymen discovering the market itself.

[DomainMagnate]

Originally Posted by CyrusL

I'm pointing out a fallacy in your logic supporting LLLL.com, not making an argument against LLLL.com.

Yeah exactly, thats why saying ZJVX.com will attain end user value because ZJV.com did and ZJ.com did is a fallacy.

So you saying there are only 676 LL's, 17.5K LLL's and 450K LLLL's and 450K is too much for the market, is that right? So why is that. What makes you think that 17.5k is not a big number, but 450k is too big, especially after you've seen proof that LLLL.com's prices can be maintained over the last 4 months? Do explain why.

Originally Posted by CyrusL

I think the domain market is fueled by end user sales, not more resellers looking to get rich quick and inflating reseller prices. If the domain market is to grow, it will be because of the growth of the internet and online commerce, not laymen discovering the market itself.

I agree that's true in a way, online advertising market is growing very quickly along with the domaining market and it has supported it so far. As the domaining market matures the growth rates will stabilize, which is why it would be unlikely to see something like that in 7 years.