Current Observed Minimum Wholesale Price (regardless of letter combo) as of Sep 1

[DNP]

Pricing Guide for 3-Letter (Composed Of Letters Only) Domains:

Current Observed Minimum Wholesale Price (regardless of letter combo) as of September 1, 2007:

3-Letter .com - $4550 (+ $300 since August 1, 2007 report)
3-Letter .net - $810 (+ $10 since August 1, 2007 report)
3-Letter .org - $270
3-Letter .info - $135 (- $10 since August 1, 2007 report)
3-Letter .biz - $75
3-Letter .us - $90
3-Letter .mobi - $200 (+ $5 since August 1, 2007 report)

The quality of the letter composition can play a significant role in determining 3-letter valuations. General concensus states that the letters A, B, C, D, E, F, G, H, I, L, M, N, O, P, R, S, T are considered premium letters. Other lesser high quality letters include: J, K, U, V, W. Lower quality letters include: Q, X, Y, Z. Domains selling for less than the above figures would represent a strong buy in today's market. Premium letter only domains tend to fetch a 500% to 600% premium (or more) over the Minimum Wholesale Price. Mixed letter quality domains have valuations somewhere in the middle of these two extremes.


Pricing Guide for 3-Number (Composed Of Numbers Only) Domains:

Current Observed Minimum Wholesale Price (regardless of Number combo) as of September 1, 2007:

3-Number .com - $6000
3-Number .net - $1000 ( + $25 since August 1, 2007 report)
3-Number .org - $350
3-Number .info - $200
3-Number .biz - $120 (+ $5 since August 1, 2007 report)
3-Number .us - $135 - (Note: These are the rarest of the NNN Domains, as the registry holds a high percentage of NNN.us names)
3-Number .mobi - $600

The quality of the Number composition can play a significant role in determining 3-number valuations. General concensus states that the numbers 1, 2, 3, 5, 7, 8, 9 are considered premium numbers. Other lesser high quality numbers include:4 and 6. Lower quality numbers include the number 0. 3-Number Domains selling for less than the above figures would represent a strong buy in today's market. Premium number only domains tend to fetch a 300% to 400% premium (or more) over the Minimum Wholesale Price. Mixed number quality domains have valuations somewhere in the middle of these two extremes.

Source: You know

 

[hugegrowth]

interesting read!

 

[Argie]

Very interesting. Thanks for sharing DNP!!!

 

[madcamel]

Thanks for the info.

 

[gawnd]

thanks for sharing.

 

[Biggie]

like to add a note here

imo...

there is no such thing as a low quality letter
how many years have letters been in existence?
now all of a sudden since the internet and domains, some letters are "low quality"?

why don't we just throw those letters away

in these times of 2.0 websites and "half-pieced" together words, odd sayings and such,
these "improper" english words and "made-up" terms become popular and get accepted into the mainstream. once that happens,they can soon become dictionary words.

many domains starting with the letters "u" "v" and "q" are highly sought after, as well as domains that end with "z" when displacing the "s" and domains starting with "x".


in todays advertising world, what "used" to be seen as the norm, is not as marketable as the "abnormal".

also, i don't know what "so and so" would value a 3 number .mobi over a 3 number .org
or place it's value higher than that of more established tld's, especially when comparing LLL.mobi to LLL.info

i'm sure the "OP" is only quoting a source, so i'm not directing this personally, it's just my opinion on the content.


as for lesser quality numbers. how can one or some be considered "lesser" quality....
there's only 10 of them!

case in point...
since there's only 100, "two" number .com domains in existence, which one would you not want to have?
if you had one or some, would you "under" sell, because someone said that "the numbers you got are low quality". then you sell, now you got none and he got yours and his!

when you break in down, it's not logical nor does it make sense to me.
unless you're trying to "low value" certain domain names, and using your site or rep to "say this is how it is".




to the youngins, please...don't be lead astray


however, in the content there is some knowledge.

if you're holding some of those "lesser" quality letters or numbers, and you thought of selling in those price ranges....then all you gotta do now is raise the price.
since they were considered a "strong buy".

sorry but i just don't believe in price guides.

many newbies have sent me offers, and when they do, i know where they are gonna say they got an idea of prices from....even before they say it. source: you know
particularly those that come from np ( no offense ), as the "source" seems to have more influence there.

here, it's a different story


imo...

 

[replic8te]

thanks for this thread

 

[madcamel]

btw, DNP, can you post the previous months data ?
Thanks

 

[CyrusL]

Don,

I think you're misunderstanding. The source isn't decreeing that some letters are lesser quality and some are lower quality. They are rather responding to and reporting the market data. You personally may believe that Q's, X's, and Z's are just as valuable as A's, B's, and C's in acronym domain names, but that wouldn't change the underlying reality that the market believes otherwise.

Even just a cursory review of any sizable amount of 3-letter domain sales data will reveal that yes, in nearly any domain, people would prefer an A, B, or C in place of a Q, X, or Z. The metrics we all use to evaluate these names are different, but whether its pure letter quality, overture searches, or potential acronyms, the majority of us have determined we like to buy domains with the premium letters as defined by the source.

 

[Biggie]

Don,

I think you're misunderstanding. The source isn't decreeing that some letters are lesser quality and some are lower quality. They are rather responding to and reporting the market data. You personally may believe that Q's, X's, and Z's are just as valuable as A's, B's, and C's in acronym domain names, but that wouldn't change the underlying reality that the market believes otherwise.

Even just a cursory review of any sizable amount of 3-letter domain sales data will reveal that yes, in nearly any domain, people would prefer an A, B, or C in place of a Q, X, or Z. The metrics we all use to evaluate these names are different, but whether its pure letter quality, overture searches, or potential acronyms, the majority of us have determined we like to buy domains with the premium letters as defined by the source.

There is no misunderstanding here.

I completely get the message.

however, data is always subjective to "who" collects it and how it can benefit them. otherwise, what's the purpose in collecting it?

if i am part of the market, then what i believe is also true.

and the more who believe or share them same opinion or similiar, they too are part of the market.

since, the data collector did not survey me or those in conjuction.

the data is not valid!

simple logic, if you follow the premise.

also, we/us/you like to buy domains as cheap as we can get them.
no matter what the letters or numbers are.

Sorry, had to edit your post, to remove the source, as that would make this an advertisement...imo.

 

[A D]

DNP,

Great info, really appreaciated.

What's your take on 3 letter .ca's?

-=DCG=-

 

[zesty]

Hello All,

I'm glad the source not listed here has conjured up great conversation among great domainers.

Biggedon is a top domainer IMHO, whom I've enjoyed doing business with in the past and I greatly respect his thoughts. I know he is generally not a big fan of this unmentioned site...and certainly no worries. His thoughts and contributions to this conversation are well received and appreciated.

The intent of this guide is as it has been designed, a guide. It was created in response to many domainers inquiring over the last many years as to what various types of 3 character domains are selling for and what the every changing 3 character marketplace reflects among resellers/wholesalers.

In regards to the letter quality conversation, the guide's reflection of certain letters is based on observed sales data. Obviously there are many Non-disclosure sales, so that data is not available, but of what is available, the general distinction among letters and numbers comes across three lines: Premium, Lesser Premium and Lower Quality. The categories are not hard and fast (there are plenty of exceptions), but do generally reflect what the market recognizes.

Thanks again all on your thoughts. Agree or disagree, it's great to learn from the conversation.

Thank you,
zesty

Also: DCG, I know I wasn't asked, but LLL.ca's have really struggled, as the registry's restrictions on the broader .ca marketplace have also served to muffle LLL.ca valuations. The resulting limited pool of investors and end-users has made LLL.ca sales both rare and of relative low price.

It's a big if, but "if" the .ca registry would open up the extension, it has the possibility to be a big sleeping giant. It would really be great to own a few nice LLL.ca's if that ever were to happen. I'd certainly like to see it happen one day...

 

[Johnn]

Good job Zesty!

John

 

[CyrusL]

however, data is always subjective to "who" collects it and how it can benefit them. otherwise, what's the purpose in collecting it?

I don't understand why you're implying that the source would falsify their data. I can't see any motive why the source would do this.

if i am part of the market, then what i believe is also true.

The market is based on what people buy and sell, not what people believe. Unless you're buying QXZ.com for the same price as ABC.com, and with enough volume to influence everyone's pricing, then A's, B's, & C's are still worth more than Q's, X's, & Z's.

I think there are two reasonable things that you may be trying to say, but haven't really yet:

1) You think that lower quality letters ought (normative) to be worth as much as premium letters. Whatever metric you use to evaluate domains brings you to this conclusion. This is much different than believing that lower quality letters are worth as much today as premium letters. Lower quality letters are worth less today because they are selling for less. The data doesn't lie.

1) You feel that even though some letters are worth less than others, they will grow at a faster rate than premium letters. That is, while you believe QXZ.com is worth less than ABC.com, $20k worth of QXZ.com, maybe 5 domains, will appreciate in value faster than $20k worth of ABC.com.

Still, I maintain belief in the source's current analysis of letters given the sales data I have seen across different selling platforms like the forums and Sedo.

 

[VirtualT]

It's just a fact that words containing letters such as A, B, C are more common in the english speaking world than X, Y, Z, as such its only natural for these letters to be more desirable, and hence the market reflects this, not that any of the letters are necessarily "worse" than any others.
If our valuation system was primarily chinese english we, might see a different trend.

 

[DomainMagnate]

Zasty, good work updating the site every month!

~MG

 

[Biggie]

Hello All,

I'm glad the source not listed here has conjured up great conversation among great domainers.

Biggedon is a top domainer IMHO, whom I've enjoyed doing business with in the past and I greatly respect his thoughts. I know he is generally not a big fan of this unmentioned site...and certainly no worries. His thoughts and contributions to this conversation are well received and appreciated.

The intent of this guide is as it has been designed, a guide. It was created in response to many domainers inquiring over the last many years as to what various types of 3 character domains are selling for and what the every changing 3 character marketplace reflects among resellers/wholesalers.

In regards to the letter quality conversation, the guide's reflection of certain letters is based on observed sales data. Obviously there are many Non-disclosure sales, so that data is not available, but of what is available, the general distinction among letters and numbers comes across three lines: Premium, Lesser Premium and Lower Quality. The categories are not hard and fast (there are plenty of exceptions), but do generally reflect what the market recognizes.

Thanks again all on your thoughts. Agree or disagree, it's great to learn from the conversation.

Thank you,
zesty

Also: DCG, I know I wasn't asked, but LLL.ca's have really struggled, as the registry's restrictions on the broader .ca marketplace have also served to muffle LLL.ca valuations. The resulting limited pool of investors and end-users has made LLL.ca sales both rare and of relative low price.

It's a big if, but "if" the .ca registry would open up the extension, it has the possibility to be a big sleeping giant. It would really be great to own a few nice LLL.ca's if that ever were to happen. I'd certainly like to see it happen one day...

Hey Z!

Glad you're not taking it personal, as we go back farther then others may know.

I'm just not one to accept anything or any data thrown in front of me....just because the masses believe it as so.

Nor were any of my statements intented to insinuate that you would "falsify" any data for your benefit.

Data is subjective to who collects it, always has been and always will be.
That's a fact.


Thanks for your imput!

 

[tristanperry]

Hey big,
I can see what you are saying with regards to 'low' quality letters, however VT does make a good point above - some letters simply aren't as popular in the English language. In fact, the letter frequency (going from most frequent to worst) is:

e t a o i n s r h l d c u m f p g w y b v k x j q z

I'm a bit suprised that "b" is considered premium and "w" isn't looking at the list above, although that's just the way things are

Plus I don't know about you, although I've always thought of z, q, w, x, j (etc) as 'worse' letters, even before I got into domaining early this year
Tristan

 

[mulligan]

The trouble (if you could call it that) is that there is only a single source of 'information' which 99% of people on this and other forums blindly follow.

The numbers get updated by whatever methodology is used and as far as I can see it is not a scientific evaluation.

The thing is that people here and elsewhere have given this information validity by using it and quoting it in sales thread and so it seems as if the source of the information is the authority in this area of the market when in fact it is the sellers themselves of 3 character domains who are forcing a 'false' sense of validity onto this information and so it continues ... in a circle.

I am not knocking the site or it's way of placing a value on these domains but it is not a scientific chart that should be followed blindly.

It is essentially a milder form of 'tulip mania'
http://en.wikipedia.org/wiki/Tulip_mania

 

[Poohnix]

Well... I kind of agree with both views... those letters are more comon in the english language, but for example Q and W are in my point of view not bad letters from acronyms, since the words "Quality" and "Web" rather often may be used. It's one thing what's traditionally used in the English langage, another what is de facto used on the web.
Perhaps the market hasn't realized that fully yet. I agree that the market says those letters are lower quality, (can't argue there), but that's resellers preconceptions, not real end user value.
But I guess that we won't know until all are sold to end users..

..