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I’ve read an interesting article on the rise in LLLL.com prices on Elliot’s blog today. Prices of four-letter domains have indeed gone up faster than the values of most other domain names during the past few weeks. Reece of 4 Letter Noob observed that the minimum wholesale price for LLLL.com domain names rose by 10% between February 01-08, 2008 (the median sale price was up 13%). That’s just for the first week of February. I’m sure prices have climbed quite a bit further since then already.
I wrote about four-letter .com domains being a good investment opportunity in January 2008 and August 2007 myself, but now I find it hard to say that LLLL.com domains still are a safe investment due to the fact that buyers have driven the prices sky-high. Normally, this alone wouldn’t be a bad sign, but one must not forget that at least 90% of all LLLL.com transactions are sales between domain speculators and not end-user sales (the speculator/end-user ratio might be even higher).
So, a justified question arises: Do we have a LLLL bubble now?
There are both pro and contra arguments. I would say, however, that the situation looks more and more like a market anomaly. The price rise has been too high and even outperformed the best expectations I had had last year. Although it is no question that there is value in LLLL domains, I don’t think the rate at which four-letter domain prices rise is still justified. This would require a situation in the market for these domains that is far different from the situation before, but that’s not the case. The market for LLLL domains is almost the same with the sole difference that there are now hundreds of domain speculators buying these domains, because they can be bought for cheap compared to other types of domain names such as LLL domains and generics.
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I’ve read an interesting article on the rise in LLLL.com prices on Elliot’s blog today. Prices of four-letter domains have indeed gone up faster than the values of most other domain names during the past few weeks. Reece of 4 Letter Noob observed that the minimum wholesale price for LLLL.com domain names rose by 10% between February 01-08, 2008 (the median sale price was up 13%). That’s just for the first week of February. I’m sure prices have climbed quite a bit further since then already.
I wrote about four-letter .com domains being a good investment opportunity in January 2008 and August 2007 myself, but now I find it hard to say that LLLL.com domains still are a safe investment due to the fact that buyers have driven the prices sky-high. Normally, this alone wouldn’t be a bad sign, but one must not forget that at least 90% of all LLLL.com transactions are sales between domain speculators and not end-user sales (the speculator/end-user ratio might be even higher).
So, a justified question arises: Do we have a LLLL bubble now?
There are both pro and contra arguments. I would say, however, that the situation looks more and more like a market anomaly. The price rise has been too high and even outperformed the best expectations I had had last year. Although it is no question that there is value in LLLL domains, I don’t think the rate at which four-letter domain prices rise is still justified. This would require a situation in the market for these domains that is far different from the situation before, but that’s not the case. The market for LLLL domains is almost the same with the sole difference that there are now hundreds of domain speculators buying these domains, because they can be bought for cheap compared to other types of domain names such as LLL domains and generics.
Send PM
Discuss
Tell a friend
Bury
change your credit cards, hide your personal information, hide your mail,...thanks for share your op...Is it reasonable to ask for reimbursment for vet fees from breeder?...great post...It would be easy to jump to conclusions here, and I don’t doubt they...DNHour.com is on auction.
DNHour team members have spent a...where is it?...it is cool....read more
DNHour team members have spent a...where is it?...it is cool....
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