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LLLL.com Pricing Predictions |
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Tuesday, 25 March 2008 |
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Some LLLL.coms are going down. Some LLLL.coms are going up. Fluctuations are normal in any exchange market. People are constantly buying, selling and trading thus, it's extremely difficult to monitor what's happening in the present term, nor predict what someone will accept. One person might be happy with $25 another with $225. However, over the long term we continue to see great gains in ALL rare domains.
Some of the rarest domains are the two letter domains, here are some sales this year...imagine the return on your investment had you registered one 10 years ago?
c4.com $107,500 2008-03-04 SEDO.com
ar.com $225,000 2008-02-13 snapnames
49.com $91,500 2008-01-24 SEDO.com
LLLL.coms are not 2 letter domains, however, if you look at the LLL.coms you see them growing over the years as well.
Rare domains are bought and sold for many reasons, many of which have nothing to do with endusers. Their value could be worth registration fee if the tax collector came knocking or (the ex spouse) or $2,000 if the right person came along. Rare domains are fun to collect, you can monetize them, park them, assign them to affiliate programs, build websites around them and more.
There has been a lot of talk in this thread about endusers. However, we already know that most go to register a name, see that it's gone and take a longer or hyphenated version. The avearge Joe is ignorant to the domain name aftermarket. Further, most endusers have no idea that QXY.com might be worth more than $7,500!
Ignorance is bliss for the moment for domain investors because their will come a day when the public will find out their is money to be made with short domains and then the stampede will be on. However, until that day happens, there is no sense in trying to figure out the mind of the public. Even with everyday collectibles like coins and stamps most people are clueless when it comes to value.
You could give the average person on the street a rare quarter and the "enduser" might pop it into a soda machine, unaware that they just spent $10,000 for a soda. You could give your aunt an old stamp and as an "enduser" she might lick it and add it to a Christmas card along with some other stamps, unaware that she just spent $40,000 for postage.
The same is even more true with domains, most people don't even know what a domain is. I know if I gave my cousin the name bobo.com (just an example) he'd probably laugh and let it expire.
People buy things because they "want" them, not neccesarily because they have a use for them. From cars to stuffed bears, pictures on the walls to antiques, people just like collecting stuff. Rare domains are collectibles, in limited quantities. They are also an easily salable and transferrable investment. Given both these strengths, I wouldn't worry too much about endusers just yet. I also would not worry about the normal ups and downs that affect every market.
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