Making a Profit in Any Market

If you read my November 23rd Investment advice tips, you’ll remember that I recommended that people stay away from triple repeat letter LLLL.coms. However, I also did explicitly say to watch out for deals in all markets. Well, here’s some truth to those words (see: ). A big congrats to Alex for spotting a bargain and capitalizing on it! And take a look at this steal by John (see:!

I told everyone (see: and now was not a good time to sell. It’s unfortunate that some people have to learn the hard way… It’s so much easier (and cheaper) to learn from other people’s mistakes than from your own!

 With large amounts of threads being made in the Namepros auction section lately, an element of strategy goes into placing your bids. If you place them around midnight CST, there’s a good chance that by the time half the USA wakes up, the sales thread is off the first page (and out of most people’s minds). For people like me who bid on multiple auctions at multiple venues daily, using this type of strategy can often help you win. I forgot all about and what a shame that was.

Analyzing the market… Prices seem to have bottomed out now. Supply of LLLL.coms on the market today was substantially less than earlier this week. It remains unclear what effect supply or demand for LLLL.coms will have over the next few days. From my contacts in the industry, I’ve come to realize that most people have set prices in mind that they’d like to receive for either:

a) each of their   b) their collection as a whole

These price expectations, especially if my small sample is representative of the larger whole could in turn influence the market in a positive way (eg. prices would be quicker to rebound as most sellers are reluctant to sell). A large portion of investors are either:

a) very new to domaining   b) have several years experience domaining

Interesting enough, we see very few holders in the middle. Most of the big holders have been in the business for several years and many of the people with 50-300 have been in the business for less than 6 months. This creates a very interesting market indeed. As we all know, most “domain newbies” have very inflated expectations of what their names are worth… To complement this, most of the big holders are holding out for prices which at present seem overly inflated. If both groups decide to hold out for what they believe LLLL.coms should be worth, supply may eventually become severely compromised. And we all know what that leads to…


~ by Reece on November 26, 2007.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: