What the Hell is LLLL.com Arbitrage?

So asked a reader named Sammy yesterday…

LLLL.com arbitrage at it’s best would be risk-free investing in LLLL.coms.

For example, if someone approached you and said “I’ll buy any quad premium LLLL.com you have for $200,” and you proceeded to go around offering people $150 on their quad premium LLLL.coms, any purchases you make would be risk free.

In a less ideal situation, you would use a price guide, like the one found here at 4 Letter Noob and proceed to offer people less than the going rate on their LLLL.coms. Because the current minimum wholesale is $14.00, if you could buy a bulk package of say, 100 LLLL.coms for $10.00 each, you could make a very quick profit reselling them at the minimum wholesale price. The best way to go about this type of arbitrage is to have a ready supply of cash available at a moment’s notice for domain name purchases. This type of LLLL.com arbitrage is riskier because you’re exposed to potential fluctuations in the value of LLLL.coms which you aren’t exposed to if you have a guaranteed buyer. Nevertheless, if you can get LLLL.coms for considerably under the going rate (in this example, 40% under the $14.00 min wholesale), you’re at least safe from short term market fluctuations.


~ by Reece on January 6, 2008.

One Response to “What the Hell is LLLL.com Arbitrage?”

  1. Thanks a bunch. So it’s basically securing a buyer and going out buy under that price.

    Hrmmm. Great idea. I’ve been selling at an average of $35. I only went after “decent” LLLL.coms… never anything to wild like QWYZ.com. It’s hard to hold since I have my CC payments to think about… but maybe this is a good idea to make a little bit of extra income… Make money with other peoples domains.

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