R-I-S-K and the Future of LLLL.coms

 

                 

 

I think some people took my previous blogpost the wrong way, so please allow me to elaborate further here and perhaps clear things up a little bit.

Investing in 4 letter .coms is about balancing risk and reward. There is perhaps no opportunity greater today than the 4 letter market — it’s what inspired me to create this blog, it’s what keeps me hanging around the Short Domain Discussion forum on Namepros for 10+ odd hours each day, and it’s largely the reason behind the creation of BQB.

I live and breathe 4 letter .coms. I rarely buy/sell/trade anything outside that category anymore and I hope BQB can one day become the premier marketplace for short domains with a specialty in 4 letter domains. This post, as well as the previous one are a warning to domain name flippers, not domain name investors. The 4 letter market looks as promising as ever long term, with rapidly advancing cellular technology promising the adoption of the mobile web faster than most of us expected. Companies around the world are embracing the mobile web as the future and it’s a future I hope we’ll all be part of. For companies large and small alike, LLLL.coms remain one of the most cost effective and efficient solutions for creating a presence on the mobile web. They’re affordable, easily brandable, and perhaps most importantly, very memorable — the 3 attributes any enduser would want in a domain.

Wimax, Wifi, One Laptop Per Child,… They all say one thing to me — ever increasing internet penetration globally. What does this mean for LLLL.coms? Increased demand for a limited number of domains. There will never be more LLLL.coms. There are exactly 456,976 of them —  about 1 for every 14,000 people in the world. Inconceivable that there will one day not be an enduser for most or all of these? I think not. It’s only a matter of proper timing. As my previous blogpost elucidated, now may not be the best time to get into the market — the Summer is upon us, renewals are right around the corner, the economy shows no signs of improvement in sight.

Short term my vision is blurred. Long term I see a very clear and prosperous picture. If you choose to invest in 4 letter .coms today (especially the low end) do it with a bright future in sight, don’t do it expecting to flip for a profit tomorrow. Patience is a virtue, Fortune favors the brave, and History usually does repeat itself. If those analogies mean anything to you, then you know exactly where I stand with respect to LLLL.coms.

A wise LLLL.com investor is one who isn’t afraid to wait and realizes that this is a long term play. Invest not for today but for tomorrow. Because tomorrow is full of potential, opportunity, and promise. Invest with full knowledge that the market may periodically go through waves of ever increasing and decreasing demand, knowing full well that at the end of the day, there are only an ever decreasing number of LLLL.coms on the market and an ever increasing number of people vying for them.

The image at the top shows a picture of 4 dice with the letters R, I, S, and K on them. How much risk are you prepared to take? Is this an investment for the present or one for the future? Ask yourself the questions contained in the previous blogpost, question your motives for investing in the 4 letter market, and should you arrive at the same conclusions that I have, understand that this is a long term investment that will yield dividends beyond your imagination in the long run. I’ve said it once, I’ll say it again — Invest not for today, but for tomorrow. Because tomorrow there is no question about whether the 4 letter market is a success or not — it already is one. The dice have been thrown, now it’s your turn.

Source: LLLL.com domains

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~ by Reece on June 14, 2008.

3 Responses to “R-I-S-K and the Future of LLLL.coms”

  1. Hello Reece,

    You are not alone to estimate this type of domains should have a high value in the long term.
    Check out what we are doing at ClassyDomains.com

    Now it’s a good thing some domainers search and buy these names for hundreds, this way they can resell them for few thousands and make some benefice.
    This creates liquidity and allows everyone to make money:
    – Domainers having low cash flow generate incomes that pay for their time.
    – Others domainers can buy such names for a reasonable price and hold them betting for the future.

    Reece, it’s well said: RISK!
    It’s up to everyone to evaluate the level of risk one can/want to take.

  2. Oh now you explained yourself muchhhh better.
    Thanks for that.

    Just a quick note regarding the conversation you are having with Andrei on the Forum about the KKKF kind of domain.

    You write:

    “FFF.com recently sold for something over $50,000 ”

    Yes, maybe even more, but that`s not only because it was all same letters (which KKKF is not, you are comparing already 2 different things, it would be good to compare FFFF.com to FFF.com)

    but that domain had also a HUGE amount of traffic.

    I have always thought that buying all those KKKF kind of domains was a bit risky , especially at that price. Of course some are really nice, like IIIT.com, that`s a true gem. Some have more potential than others.
    But I have to agree with Andrei: bashing one niche of the LLLL.com is not going to help another one.

    Look, around, in my NamePros sale thread, I still have a LLLL.com domain with lots of traffic starting with PC and no one offered $1 for it yet.

    From what I`m seeing, everybody has cut the bids, the wallets have closed. And not for LLLL.com only.

    OIL prices are killing the World economies and this was not in my “predictions” as Snoopy called them.

  3. A good post. I must say I worried a bit about my (relatively small) LLLL.com portfolio after reading your previous guide (I haven’t been too active in domaining recently, hence wondered whether everything had imploded :-P)

    However I think the following summed it up for me:

    “A wise LLLL.com investor is one who isn’t afraid to wait and realizes that this is a long term play.”

    Very wise words!

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