Which LLLL.com Camp do you fall into?

From what I’ve seen, there are 5 rather common LLLL.com camps:

1. There are those who believe all LLLL.coms are worthless.

2. Those who believe that people who bought in pre-buyout got a good deal but are uncertain about what the future holds for people paying multiples of that original regfee for LLLL.coms.

3. Those who believe that only premium LLLL.coms and perhaps triple premium LLLL.coms will ever be worth much more than prices today (renewal fees must be taken into account here).

4. Those who believe all LLLL.coms will eventually appreciate in value (taking into consideration all renewal fees paid).

5. Those who believe LLLL.coms will follow the path of LLL.coms and that soon every LLLL.com will trade for $XXX+.

Number 1 isn’t an opinion — it’s an outright lie to oneself (or clearly the sign of a very inexperienced domainer). If one thinks that all LLLL.coms — premiums, VCVCs, and CVCVs included are worthless, I don’t have much to say to you… Other than to perhaps find another hobby 😆

I can agree with all other views here and when represented with facts or reasons, all can reveal a certain “truth”.

Those in Camp 2 are aware of aftermarket LLLL.com prices. They see that prices are always in excess of registration costs and acknowledge that those who bought in pre-buyout made a good decision. They’re not necessarily certain what the future holds and are divided on this issue — some suggest selling enough to cover your initial investment, some suggest selling names each year to fund next year’s renewals, and some aren’t quite too sure what’s best to do and are perhaps waiting until a later date before selling their names or making their opinion on this matter known.
A person in Camp number 3 recognizes the success pre-buyout domainers achieved. Nevertheless, they’re not confident about the long term outlook of names containing several bad letters and are skeptical about whether values can increase at a rate faster than annual registration fees will eat up. Such a person could point out that premium LLLL.coms (esp. CVCVs) have a long history of appreciation and that this is unlikely to change… Perhaps they feel that as LLL.coms continue to appreciate, premium LLLL.coms may eventually become the choice of small and medium sized companies… If they look at LLLL.coms this way and see their value as being tied to enduser potential, it’s hard to discount this opinion… There are clearly far more endusers for your average quad premium than your average anti-premium. That’s a given and this LLLL.com camp, while perhaps playing it a bit conservatively, certainly have a firm grounding in reality.

A person in Camp 4 (I consider myself in this group) looks at LLLL.coms as a long term investment. They believe that various factors (increasing number of domainers, decreasing quality of new registrations, increased demand for short domain names, increased prices on LLL.coms caused by corporate investors,…) will eventually contribute to higher LLLL.com prices. They’re not confident enough to say with certainty that LLLL.coms will hit a certain price at a given point in time, however they’re fairly confident that given a long term (2-5 year) outlook, prices will be sufficiently higher than they are today for not only renewal fees to be compensated for, but also lost opportunity costs.

A person in Camp 5 usually believes that all LLLL.coms are currently underpriced substantially and that the market will eventually (some here would even say soon) awake a sleeping giant. They use as evidence continuously increasing demand for LLLL.coms, the fact that all drops are picked up almost instantaneously, the fact that LLLL.coms are already selling for 100-500% ROI over prices even a few months ago,… Much of their reasoning is based on events which have already occurred. The big difference here from a Camp 4 domainer, is that the Camp 4 domainer believes it may take several years (possibly 5 or even more) before the worst LLLL.coms hit $XXX (however he believes they will be a profitable investment, regardless of how long they take to get there), whereas a Camp 5 domainer believes that LLLL.coms will all hit $XXX+ within 2 years or less — many believe it will happen in 1 year or less. While a Camp 4 domainer regards rapid appreciation as a possibility (granted the various factors they have analyzed could indeed rapidly increase in their favor), they’re more than willing to wait for it to happen.

Your thoughts? Did I miss an LLLL.com Camp here?

Source: Which LLLL.com Camp do you fall into?

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~ by Reece on December 20, 2007.

4 Responses to “Which LLLL.com Camp do you fall into?”

  1. mmmm.. It looks like the only difference as stated between camp 4 and 5 is time. I guess I stand somewhere in between. Sometime last year or a few months ago I purchased a 3 letter .biz for about $50.00 or $60.00 I looked back and saw that in 2003 or 2004 (forgot which) that same domain was selling for $5.99. I think $50.00-$60.00 is about the standard now for them. However the .biz and .us seem to be going through a week phase right now and hopefully will pick up some time in the future? It is possible that you may have a fast rise and then somewhat of a slow down but with the fact of them being .com an interpretation of a “slow down” may just be a slower appreciation in value rather than a collapse. As far as the appreciation from the $5.99 to the $60.00 in 3 or 4 years is concerned you can site a similar history in the lll’s of old and that history repeating itself with the llll’s now. I’m positive about llll’s, though I don’t have many at all I plan on holding on to most of them in anticipation of their rise to glory. It surely seems like the natural progression….

  2. Hi CHILLY,

    Thanks for the insightful response! 🙂

    Alot of people are seeing LLLL.coms as the natural progression from out of this world (but still highly in demand) LLL.coms. I think you’re correct about a fast rise followed by a slower (in terms of ROI) cool down period. The hype of “being sold out” no doubt sent prices from regfee to $10 or so inside of the first few days, which was already a 50% increase on regfee if you get them wholesale… If we look at prices since then, they’re already starting to cool down as they’re going up by 10-40% or so a month (depending on the LLLL.com flavor), rather than 10-40%+ a week like right after buyout.

    I do think holding them is a good idea and will be doing that myself (selling a perhaps a few to finance renewals or other acquisitions).

  3. Hey Reece,

    I just ran across your page and thought it was very informative. I jumped into the LLLL’s earlier in 07′ and bought up about 120 of them. I currently have a few people on Ebay and at my work that are offering me prices all over the map for different names. I too, think that I should hold onto them as long as possible, but what price would be sufficient enough to sell them this year. I was very selective when I was buying them, so I have some good letters, but I am seeing even q,z,x,y’s selling for 60+. I don’t see the prices ever going down, but there’s a price for everything.

    Any advice?

  4. Jeremy,

    My advice would be to engage in LLLL.com arbitrage. You can make some good money buying LLLL.coms with a single bad letter for <$40 and reselling them for $50-$60.

    I’ve been doing this with semi-premiums lately. Names with 3 good letters and a V, W, or Y can be had for $50-$60 with a little searching, but are very easy to resell for $70-$80. With a little patience, some of them even fetch $100.

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