So, what the hell happened to domain prices?

Stian

www.bitweb.no
Joined
Jan 19, 2007
Messages
7,608
Reaction score
292
Feedback: 238 / 0 / 0
So, I've been away from the domain market for .. maybe a year .. and when I come back I see domains like ZXYQ.com, DPDQ.com etc. sell on Sedo for $500+ a pop? Names that were hardly worth regfee last time I checked.. ?!

What happened? I know there's a lot of new Chinese money in the market, but man .. Aren't these domains only going from reseller to reseller infinitely?

Are you no longer valuating a domain name based on its potential to end up with an end-user?

Are most of the 456.976 combinations of LLLL.com domains ending up developed? If so, then I understand where the prices have gone. If ZXYQ.com will never end up as anything more than a reseller-to-reseller catch ball, then I don't see why it should ever have any value at all.

Are we about to see a bubble burst, or will the prices keep going up? The reason I'm asking is because I don't see a solid ground for the current LLLL/LLL prices.

Anyways, I've been away for a while, so please fill me in and feel free to discuss. Thank you. :)
 

katherine

Country hopper
Joined
Jul 9, 2005
Messages
8,428
Reaction score
1,289
Feedback: 65 / 0 / 0
In domaining bubbles come and go. Not the first nor the last.
Something is not right when what was labeled junk yesterday become premium overnight.
 

Johnn

Level 14
Joined
Apr 13, 2004
Messages
15,867
Reaction score
1,333
Feedback: 587 / 0 / 0
They play with the demand and supply rules.
They (I dint want to tell you who) create a false shortage to buy them high and sell them at a higher price. There is no real demand..

Names without aoiue or v will never be premium names - in the long term.
 

katherine

Country hopper
Joined
Jul 9, 2005
Messages
8,428
Reaction score
1,289
Feedback: 65 / 0 / 0
They (I dint want to tell you who) create a false shortage to buy them high and sell them at a higher price.
There has been an LLLL.com buyout in the past. Ditto for LLL.us/.in/.biz.
Of course artificial scarcity does not create value.
 

Stian

www.bitweb.no
Joined
Jan 19, 2007
Messages
7,608
Reaction score
292
Feedback: 238 / 0 / 0
The funny thing is that people tend to forget that there's a whole world of buyers outside of China, so super-premium LLLL.com domains often sell below the radar, because everyone is seemingly busy bidding on names like XQYN.com! Especially people who are new to domaining tend to be extremely hyped about these types of domains.

Don't get me wrong though, I sure appreciate the fact that the Chinese are pumping tons of money into the domain market and I don't see it ending any time soon, but I still prefer the "good old" premium LLLL.coms, aimed, valued and priced with Western end-users in mind. But then again, those domains have also increased tremendously in value lately, so I guess we should be happy, those of us who still have LLLL.coms in our portfolio.

I'd still pick APAB.com over YYZQ.com any day of the week. ;)
 

stuff

Mr Domeen
Joined
Mar 30, 2002
Messages
4,357
Reaction score
37
Feedback: 53 / 0 / 0
There are total 160000 4 letter .com so called Chinese premiums. (domains not including letters a,i,e,o,u,v.)
is this big number or not. I don`t know how to compare. there are only 8000 Chinese premium 3 letter.com-s
 

Stian

www.bitweb.no
Joined
Jan 19, 2007
Messages
7,608
Reaction score
292
Feedback: 238 / 0 / 0
There are total 160000 4 letter .com so called Chinese premiums. (domains not including letters a,i,e,o,u,v.)
is this big number or not. I don`t know how to compare. there are only 8000 Chinese premium 3 letter.com-s

Minimum price for "quad-premium Chinese" LLLL.com is very close to $1,000 right now. So considering ratio 160,000 : 80,000 = 20, then minimum price for Chinese premium LLL.com should be 20 x $1,000, which sounds pretty correct to me. I haven't seen an LLL.com without vowels + V sell for less than $20k in a while.

Now, can you imagine only a couple years ago, we could pick up "bad letter" LLL.coms for $3,5k a pop? :)

The domain market changes a lot overnight, which is why it's so fun. :)
 

stuff

Mr Domeen
Joined
Mar 30, 2002
Messages
4,357
Reaction score
37
Feedback: 53 / 0 / 0
Minimum price for "quad-premium Chinese" LLLL.com is very close to $1,000 right now. So considering ratio 160,000 : 80,000 = 20, then minimum price for Chinese premium LLL.com should be 20 x $1,000, which sounds pretty correct to me. I haven't seen an LLL.com without vowels + V sell for less than $20k in a while.

Now, can you imagine only a couple years ago, we could pick up "bad letter" LLL.coms for $3,5k a pop? :)

The domain market changes a lot overnight, which is why it's so fun. :)

I actually remember 2002 or 2003, when you could get 3 letter.com for $500 and some guy sold here 2 letter.com-s for $15000 a piece.
 

DomainSageLtd

Level 2
Joined
Jan 10, 2006
Messages
33
Reaction score
0
Feedback: 2 / 0 / 0
I found this thread very interesting :)

I gave up domain trading around 10 years ago, after doing it full time for 2 years with my own UK registered company.

Due to personal reasons I now find myself with some spare time and some money to invest so thought I'd revisit the domain name game :) ... Boy, things have changed ( but still a lot stays the same ).

Literally just been thinking of this for the last hour, so a lot of research do do to get up to date. Interesting thoughts on the Chinese market.
 
Top Bottom