LLLL.com – A Temporary Slowdown Due to Market Correction

New LLLL.com price guide is out by Reece and we can see that prices have slowed a bit:

Data derived from TDVR.com, the largest LLLL.com database. Numbers in parentheses reflect Feb 17, 2008 statistics. Current prices reflect the results of the 500 most recent reported LLLL.com sales within the Feb 25, 2008 through Mar 5, 2008 timeframe.

*Minimum Wholesale : $48.00 ($52.00) -> 8%

10th percentile: $59.00 ($60.00) -> 2%

25th percentile: $65.00 ($67.00) -> 3%

Median: $85.00 ($81.00) -> 5%

75th percentile: $126.00 ($150.00) -> 16%

90th percentile: $400.00 ($445.00) -> 10%

How did this happen, what are the reasons and will the prices keep growing in future?

1. In my opinion this is only a temporary slowdown caused by the market correction.

   Many smaller domain investors registered few dozens up to a couple hundreds crappy LLLL’s before the buyout and they were waiting for the best moment to flip them.

   Now many are afraid the prices might drop for all LLLLs and especially the crappy ones so those investors panicked and sold their LLLL.com’s cheaper – it’s better to sell cheaper and still make a huge profit than to lose it all, right? They are still in a big profit compared to the reg fees, but for the whole market it’s a temporary slowdown.

2. Eventually the LLLL.com’s will keep growing in prices, in a same way as LLL.com’s grow and in a same way and even faster as the domaining market grows. If you look closely and analyze the sales carefully, except a few bargains the prices for good LLLL’s weren’t affected much. The demand is still high for cvcv’s, quad premiums and similar premium 4 letters.
3. The current temporary slowdown in prices presents many great opportunities for smart investors. There are plenty of good LLLL.com deals. Many decent quad premium LLLL’s for around $400 and triple premiums for around $100 with good letters.

To sum this up while many are arguing about the future of LLLL.com I’ll keep buying them up for cheap same way I did 4 months ago before the buyout. Back then I was able to get triple premiums with ‘U’ and ‘K’ for $15-20 on average and quad premiums for $100-150. Now the prices are much higher but looking back in a year it will be very cheap too.