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Ever heard about .com Boom crash in the millennium, or decline in house prices in UK in recent months?
If a price of an item is inflated definitely there will be a declining trend afterwards. If the market is bullish, Savoy investors will support it irrespective of the real value of the item.
So what makes it’s a crash. When suddenly people realize there are no actual gains on investing and when everyone tries to sell the stock and make cash instead, the supply will increase, so do the prices do decrease as there will be more supply than a demand. At this stage most of the small time investors will specially try to get out of the market by selling short as of the fear due to declining prices.
Situation is same with three letter .com’s though one might put it as a temporary issue as summer always been a bad time to sell. In end of June this year minimum wholesale price for a LLL.com peaked at $7650 but in next two months it dropped to $5400. And in my opinion it will fall further to the level how it was about 2 years back in coming months which is around $2500, as I according to me the market was based on speculation and on the bullish trend afterwards giving the LLL.coms a inflated price tag. Three years back the minimum wholesale prices of LLL.com was around $1500 mark, which was more than 500% increase in last three years. There is no reason why only a specific market segment of domain industry gaining a tremendous growth whilst other areas in domaining are not gaining the same type of growth. It was the same case observed with four letter .com’s where the minimum wholesale prices went near $50 mark soon after its buyout in early this year, but now some four letter domains find it difficult to gain $20 in the reseller market. Same case was observed with 5 digit domains which minimum prices reached double the registration fee soon after the buyout but in few months some 5 digit .com domains were available freely to register.
One might think that as the prices were going down this might be the best time to grab some bargains. But I do predict the short domain market to go further down.
So unless you are a very experienced domainer I do not recommend buying short domains such as three letter .com, four letter .com, 3 character .com’s
It’s just a matter of thought. Decision is yours. Anyway there are loads of investment opportunities in the domiain industry. Subscribe to RSS feed to keep up to date with the latest opportunities.
the four letter .com market which had a bear minimum of around $50 in the begining of the year is sevierly effected just like a bubble burst. Last week have seen some LLLL.com on ebay fetching only $10. Better not be a lazy domainer just investing with hype. have to look at the end user potential and realistic value when investing on short domains
I m very new to this market …But i observered from past 2 months there is some change in the market ….So i planned to think double times before i invest here
Thanks for the insight about LLL.com domains. Careful approach in buying or not buying LLL.com at this moment may be a right idea at this moment.
I will try to keep coming again and again for more tips on domain industry. Thanks for the article though.
I always thought that the whole LLL.com and LLLL.com thing was ridiculous! Register a domain that has meaning to you, not because it’s the shortest out there. I can see the point of buying and selling domains with high PR, but come on!
Oh, and to answer your comment on my blog,
“balloon festival!! thats cool. is it hot air balloons?…… havent been on one but would love to”
Yep they are, I didn’t go though. I would love to go on one too!
Nice informative article, mate. From investment perspective domain, either short name or long name, should be purchased with specific audience in mind. In my opinion, buying a 3 or 4 letter repeating character domains for investment purpose is not a good idea.
Good article……..i agree with you and the balloon part from some previous coments…… but i think webmasters now r more inclined towards the branding or relevance of the name rather than it being small……
the market has been changed totally this year last year their was demand for 3 letter domains
by reading your article obviously shows me that which domains should i buy
Nice article post. Short domain name is good to buy If you know what domain you should buy. I prefer domain which has keyword on it. You can develop it and sell it.
short domain names are always good investment as there is always a demand from end user
Hey nice article. very interesting. Personally, i prefer domains with keyowrd in it as they are easier to build
Yeah, I too noticed the declining in the prices of short domain names. They were expensive when I first noticed the domain market and now their prices have been going down. May be I will get one when the price reaches really low.
There is definitely a lot of hype surrounding the short domain industry. 3 and 4Ls did, like you mentioned, increase in value out of proportion compared with other types of domains. Personally I follow the 5L domain genre closely. 5 letter domains are the shortest domain type that has never really experienced any hype. You can still hand register decent 5 letters and those in the aftermarket are normally priced so everyone can afford it. Even though there are about 12 mil. 5L combinations I think the best ones will increase considerably in value in course of time. The Internet IS growing!