What is My LLLL.com Worth?

In an attempt to cut down on the number of LLLL.com appraisals we see posted in the Appraisal Section on Namepros, this question was recently asked by Ramakazi. 4 Letter Noob is quoted in his thread, so I felt obliged to reply on how I believe the data made available on 4 Letter Noob in the LLLL.com Price Guide is best used.

The LLLL.com price guide (on 4 Letter Noob) is mainly focussed on allowing someone to quickly estimate the value of a large number of LLLL.coms in a reseller environment. That’s also a major reason why I stay away from providing much in the way of details on pronounceables — prices can vary so much on these that I really wouldn’t want it on my conscience that someone sold out for thousands too cheap or bought for thousands too much…

If you had 100 non-pronounceable triple premiums + X and resold in a reseller environment, what’s reported on my blog (4 Letter Noob) would almost guaranteed be within +/- 30% (likely much closer on the “under the posted min wholesales” side) of what you obtain. On a single LLLL.com however, my blog (or any appraisal, really) is highly inaccurate — we just can’t account for things like endusers or why a certain domain may go for more on a particular day than the exact same domain would on a different day (different bidders, different market conditions, different amounts of now available disposable income, etc).

Bad letters aren’t “bad” in every situation, as FAQs, an example provided by dezineright on Namepros elucidates and as sales of strong acronyms such as UK or RX in example reinforce.

To accurately appraise any 4 letter .com in a reseller environment (this is the only type of appraisal I believe in giving — nobody is qualified to tell you what an enduser will pay), you’d certainly need to know the name in question, it’s pronounceability and the desirability of the letters (including in other languages and how it’s desirability in foreign languages may influence it’s value to a predominantly English domaining population) and the desirability of the order in which they present themselves, the likelihood of finding an enduser, whether there’s any significant traffic or age which may complement it’s value, any significant collector value (may be influenced by rarity, pronounceability, or other characteristics such as extreme age, extremely premium letters, all vowels,…), what similar names have gone for recently (if this data is available), current trends and fads, the availability of comparable domains (more choice likely means less value),… There really are an infinitesimal amount of factors influencing the value of a particular domain on a particular day, and I’m sure a statistician could draw up another hundred I neglected to mention (eg. how might selling right at tax time influence domain valuation? Chances are that big domainers are paying in whereas smaller domainers may be getting some money back, could this have an effect?).

Source: What is My LLLL.com Worth?


~ by Reece on May 5, 2008.

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