The Dec 2015 spike and subsequent drop in LLLL.com prices on the reseller market wasn’t the first time that happened. Though the type of domains that appreciated were different, a similar event took place in early 2008, immediately following the buyout of LLLL.com in late 2007.
DomainSherpa recently had a discussion on Liquid Domains that makes some insightful points.
But an interesting thread on NamePros brought back memories of previous conversations – Expected future of 4LLLL .com domains, here’s my take on why the reseller market is depressed and why it doesn’t matter unless you have to sell for financial reasons –
gary-glen said: ↑
Talk to the “old guys”, 4 L has left a bad taste in our mouths.
When you say ‘old guys’ who specifically are you talking about? Guys who started in late 2015?
4L.com have done very well by people who bought at the right time and sold at the right time.
Maybe not as good as one word domains, but still, pretty good ROI.
Willrad said: ↑
Pronouncable and Brandable 4L.coms I think will appreciate with value as more and more companies search for short meaningful domains.
They always have been ‘valuable’ if you can build a business on them.
Brandable domains of all types routinely sell for $x,xxx and LLLL.coms are no exceptions.
Plus people will always look for short .com domains to brand their business on and that’s not about to change.
And shorter domains are more ‘prestigious’, which is why 3L.com are $30k min, 2L.com are $300k min.
Also, by the prices above, 4L.com should actually be $1k minimum.
imadoer said: ↑
Chinese market is down.
I think a lot of new investors are getting a reality check in general.
Chips are not selling for as much as they expected.
More than a few of them are facing massive renewal bills for their new tld purchases.
And/Or are facing a LOT of upcoming drops, which has to hurt, even at reg fee.
.Com already had a 1.9 million names drop, that’s a lot of wasted $$$.
When the truth of the matter is that a domain name either has intrinsic value, or it doesn’t.
And if a domain has inherent value, you’re can make way more through development than through a sale.
Though if you must sell, then at least takes Rick’s advice and sell it, or jv with, the right end user.
And you only need one correct end user for the domain.
After all, not everyone knows the value of a precious stone, I even blogged about it a couple of days back – “What’s the value of a domain name?”
Ironically, the discussion was pretty similar in 2008 as well – The LLLL.com Conundrum and nothing much has actually changed on the ground. LLLL.COM continue to be an excellent, liquid, rare asset class that can only appreciate in value over time.