” The LLLL.com Conundrum”

Samit (MWZD) wrote a great article about LLLL.coms which inspired this post.

I’ve tried to explain just this a few times to several people who haven’t been happy with the “reseller appraisals” I’ve given them on their names. To an enduser any name is premium, but other than that, our best bet is to evaluate domains based on their likelihood of finding an enduser. Is it perfect? Of course not. If it was a perfect measure, people wouldn’t be selling domains like UNET.com for so much under “true value” that they’re subsequently flipped for a 1000%+ ROI, people wouldn’t be selling PSWD.com for $800 + change and reselling it a couple months later for $5500…

That’s what makes this market so very interesting… The potential for massive profits is there in each LLLL.com. Unfortunately, the potential for many of them to find an enduser might be years away (or never) for some of them and I think that’s what most of us are finally starting to realize.

Pronounceables aside, there are still some serious valuation problems with many LLLL.coms imho. A domain with 10+ endusers, 1M+ google results, loads of type in traffic and aged 10 years is worth more than an LLLL.com dropped yesterday because nobody wanted it that has 0 traffic, very few google results, and no apparent endusers.

This is where the bargains still lie imho. You can pick up many quad premiums today for ~ $400-$600 that have as many google results and potential endusers as LLL.coms costing 15 times more — or you can pick up quad premium LLLL.coms today that have less google results and potential endusers  than their supposed “lower quality” brethren for prices 1/10th what you paid. What will it be?

This isn’t the LLL.com market and as soon as the masses start realizing that and acting accordingly, we might start to get somewhere.

Unfortunately a price guide simply cannot (due to sheer lack of time) break down each and every single LLLL.com and give valuations based on the factors mentioned above, but this is how I have always recommended people go about making their purchases.

I recently bought PLLP.com for $500 — about the going rate on a quad premium with similar letters… But why settle for an ordinary quad premium when I could do so much better? For the same money, I got a palindromic LLLL.com which has real meaning as a professional accreditation.

We can apply those same principles to each and every purchase we make. I never buy “ordinary” LLLL.coms unless I get them considerably under market value, rather, I prefer to focus on specimens which have something more to offer — if only so that they’re easier to market + sell.

There’s still alot of money to be made in this market and perhaps one of the biggest misconceptions out there is that “it’s too late”. It’s not too late, it’s time for a different strategy.

Source: The LLLL.com Conundrum

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~ by Reece on April 3, 2008.

One Response to “” The LLLL.com Conundrum””

  1. Well said. I like your last sentence especially: “It’s not too late, it’s time for a different strategy.”

    I agree 100%

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