Domain Magnate

Justin Godfrey, known as Rockefeller on dnf, recently posted about his sale of 92 LLL.com’s for $598K:

I just finished up a deal where I sold 92 LLL .coms for just about 600k, probably could’ve got more since it was only 6.5k each, but it’s nice to see people are spending freely again!

I suppose the LLL.com’s were of lower quality so this sounds like a good deal. It’s indeed good to see that there is healthy demand for the names in such quantities. The buyers are out there and ready to invest and spend money on quality domains! It’s the lower quality domains that are “in recession”, good generics and 2-3 letter .com’s are always in demand.

Myself I don’t own any LLL.com and never have. I always thought they were overpriced and not a good investment. They can’t be developed, they are too expensive for most end users and during the last half a year it’s unclear if the prices are going up or rather dropped.

So I’d much rather buy geo or generic domains.

Last Premium LLLL.net’s were bought out on Feb,5 2007 – 3 days ago. Now you can already see threads on namepros selling these for $20-25 each and some are getting purchased. It’s pretty obvious that these will grow in price and based on past LLL.net growth and LLLL.com quick rise to power, I predict the premium LLLL.net’s to have a minimum price of $50-100 by the end of the year – not a bad return for those who bought them for $5 each. I bought 400 premium LLLL.net’s myself, could have bought many more, but I figured I’d better keep these and renew them next year if needed as I’m mostly concentrating on LLLL.com’s now.

That comes to show the enormous leverage of a buyout. LLLL.com domains that were available 4 months ago are now selling for $60-70 and will continue to grow at high rates while new players enter the market and boost the prices by buying the 4 letter names in large quantities. At some point, several months from now, the prices will stabilize and continue growing at more regular rates close, but still higher than the LLL.com’s do now. Although the biggest winners will be the ones who originally registered the domains and had enough patience for the prices to grow to turn their $7 registration fee domains into $100+ domains.

All the decent cvcv.net/vcvc.net seem to be taken as well and have certain reseller value. People are also buying all good LLLL.net’s now inspired by the LLLL.com’s, but I think many of them will be disappointed because there are about 220K LLLL.net’s remaining. And unless a name belongs to a special category which was already bought out, like premium LLLL.net’s, or cvcv.net etc, it won’t have reseller value.A domain that looks “cool” to one person can be total garbage for rest, that’s why the safe way is always to buy domains that are supposed to run out soon. It’ll take years till we see the last of LLLL.net’s purchased, my prediction is 5 years or more – so don’t get too excited about these. There are more profitable opportunities around the corner