Minimizing Risk, Maximizing Liquidity.

Pretty straightforward, right? Like any investment, one can choose to conservatively invest in LLLL.coms (eg. investing in only quad premiums), invest more aggressively (eg. investing in double and triple premiums), or take on a great deal of risk (eg. anti-premiums).

Each of these markets have their own unique advantages and disadvantages. Triple premiums for instance, are very easy to resell for their full market value, whereas both premiums and anti-premiums may sometimes take days to receive bids for their “true” value. In the case of anti-premiums, demand is low — hence it is understandable that it may take awhile to get a reasonable offer (above reseller pricing). In the case of quad premiums, often demand is not a problem — these things are HOT! Rather, the problem is the difficulty in assessing a value for each premium With a base price of $200, yet many sales for $1000+ , it’s often difficult for buyers and sellers to agree on any pricing above reseller pricing.

The main benefit of quad premiums is their incredibly fast and stable appreciation. Quad premium LLLL.coms have considerably more history than other LLLL.coms and hence are somewhat of a safer bet if we are to judge future performance based on the past. While past performance of course never guarantees future performance, quad premium LLLL.coms have shown a pattern of appreciation somewhat similar to LLL.coms which shows no sign of slowing down anytime soon.

 CVCVs and VCVCs are far less liquid than any of the three examples previously mentioned, however their recent appreciation in value is second to none. They tend to perform unusually well at auctions held at Sedo and TDNAM and are the most likely to be unaffected should LLLL.coms drop come renewal time and the buyout cease.

Triple Letter LLLL.coms are a domainer fetish 😉 Everyone wants one (we all want a CVCV too, but can’t always get what you ask for!) and prices are reasonable enough (often $200-$400) that people can afford to buy them. Demand and future potential are difficult to ascertain due to the limited number of these on the market, however it is my belief that triple letter LLLL.coms have a very solid future.

Now that you’ve read all that… Why not get a few of each? The secret to minimizing risk and maximizing liquidity is in having lots of different options for your customers to choose from.


~ by Reece on January 14, 2008.

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