Why an Investment in LLLL.coms still makes Cents

While most of the big players comfortably sit on our LLLL.coms with no intention of selling them cheap (under $100 each… BAH!), many smaller domainers are curious about whether now is the right time for them to sell or whether now is the right time for those who missed out on the LLLL.com buyout to consider purchasing some LLLL.coms.

 At a going rate of approximately $30-$100, LLLL.coms with 1 bad letter (J,K,Q,U,V,W,X,Y,Z) seem like a sure winner. There are millions of potential endusers out there for names containg a single bad letter.. The amount of endusers begins to dramatically decrease from there on, however. Let’s take a recent purchase of mine — ZVQJ.com (http://www.namepros.com/domains-for-sale-auctions/395792-very-rare-100-anti-premium-zvqj.html). How many potential endusers does that name have? I can’t imagine it has very many. I bought it as a keepsake — a memento of the last remaining hours during which LLLL.coms could still be had for regfee easily. At $12, it was worth it to me. I definitely do not think anyone would be better off buying names like this than buying names with 1 or 2 bad letters, however. Names with 1 bad letter represent a strong to very strong investment opportunity at present, with very strong investments containing a single bad letter, being a Q,X,Y,Z found in the ~ $30 range. J’s found in the ~$50-$60 range, K’s found in the ~$60-$80 range, and U,V,W found in the $80-120 range would represent strong investments in today’s market.

 Names with 2 bad letters can still sometimes be had for as little as $20. These also present a solid buy. There are plenty of potential endusers out there. Do your research before you buy the name. Do a Google Search… How many results do you get? What’s included in the results? Why not use an acronym finder? Buying names with 2 or more bad letters should be done with caution — there’s a huge range here. Names with 2 bad letters should perform about average to strong (representing a balanced investment addition to your portfolio) in today’s LLLL.com market. Granted these are some of the cheapest names available which still have endusers out there, they represent a balanced choice for the cautious LLLL.com investor who’s looking for growth while being risk averse.

I’d recommend investors stay away from full market value priced premium LLLL.coms for the time being. Their value seems to be a bit inflated in light of the alternatives presented above. The same goes for triple letter names like JJJQ.com. With prices hovering around $250-$1000 on most names like this (price differences reflecting overall quality of the triple letter), ask yourself how high these can realistically go. Sure, they’ll go up with time, but won’t the alternatives mentioned above go up to? In other words, what do you think is more likely… JJJQ.com being bought for ~ $250 today and fetching $1000 a year from now (a 400% ROI) or EAQG.com being bought for ~ $30 today and fetching $120 a year from now (again, a 400% ROI). Plus, EAQG.com has real world potential endusers — do a Google Search and find out! All premium names and triple letter names are expected to perfom worse than average this quarter. Bargains can still be had in closeout sales, liquidations, and quick sales. Keep your eye out for premiums being sold for under their market value. Places like TDNAM.com, Namepros, Snapnames,  Sedo Auctions, and TDVR.com  are great places to begin your quest of understanding what all premium LLLL’s are worth. This market is very volatile and recommended only for those who appreciate risk and are looking for long term aggressive growth. Names with triple repeating letter combinations are not recommended over the next 2 quarters. These names represent a scarce asset, rather than being an asset in demand by endusers worldwide. Their value may depend on the overall perception of LLLL.coms as a whole as investment vehicles and the amount of disposable income your average domainer has (these names are not in demand by many endusers).

 Names with premium and non-premium repeating letters continue to be a strong buy with names containing double s’s and e’s in example, repeatedly topping the mid $XX mark (and often attaining $XXX-$1XXX if they have 1 or no bad letters). Names with non-premium repeating letters are now fetching ~$30-$40 on average, up ~$10-$15 from last week. This category as a whole represents a very strong investment at the moment.

CVVC’s are currently being overshadowed by the bargains still to be had with VCCV’s. While VCCV’s are definitely a bargain in the $30-$40 range we’re currently seeing on Namepros, keep your eye out for bargains to be had on CVVC’s. Any VCCV purchased under $30 today is a steal in today’s market.

CVCV sales are still strong, however VCVC’s are still commonly overlooked. Someone with $XXXX+ to invest in quality LLLL’s would be advised to consider investing in quality VCVC’s than in CVCV’s whose value is mainly because they are CVCV’s. Don’t pass up on the opportunity to purchase cheap “copycats” with Y’s rather than our usual vowel set. Names like ZYBU (a CYCV) are just as pronounceable as many CVCV’s but can be had for often 1/2 to 1/4 the price. In ZYBU’s case, $200 would have bought you the name over at Namepros earlier this week (talk about a steal!). CVCV’s containing a Y and VCVC’s as a whole represent very strong investment opportunities in today’s market. CVCV’s as a whole represent an average investment in today’s market.

Source: Why an Investment in LLLL.coms still makes Cents

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~ by Reece on November 23, 2007.

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