As I mentioned last week, I am thinking about starting to invest in numeric domains next year, so anything related to numeric domains is catching my attention more than it usually does. So a post from Rick Schwartz today really caught my eye, in it he made a clear point – Domainers are selling LLL .COMs for too little:
“3 letter domains are selling for around $25k-37k. Way too cheap!! 1/10 of what the prices should be and probably will be in the not too distant future. LLL.com domains are worth a MINIMUM $100k! Any less is weak. Selling too cheap. A unique asset to fill a unique need of something very specific and you pull your pants down??!! WEAK!” (Source – RicksBlog)
This got me thinking, I wonder if this represents an opportunity? Next year I plan to deploy $50k – $100k into numeric .COMs, at least that’s what I’m thinking now, as I continue to dive deeper into the data this could change, but that’s the plan as it stands right now. If Rick thinks that Domainers are selling LLL .COMs for a fraction of what they are worth, the same is likely true for 4N and 5N .COMs as well.
So could it be that now is one of the best times to buy numeric .COMs from Domainers who have held them for years, are sick of holding them and are ready to just take the money and run?
I agree with Rick, it does seem like Domainers are selling LLL .COMs for too cheap. At the same time, I want to put myself in the shoes of an LLL .COM owner. Supposed I’ve held onto an LLL .COM for 12 years, I originally bought it for $5,000 – I get an offer for $25,000 and think – okay, that’s five times my money and I’ve been hanging onto this name for 12 years, I need to make some money. So it moves onto another Domainer, if they hold it for 5 years and during that time put more time and energy into marketing the name, could they flip it for a 4x profit? Maybe so.
This leads me to a question. If you were going to deploy $50k – $100k into numeric domains, would you buy more names and thus focus on 4N and 5N .COMS, or go for the bigger names and try to pick up 2 – 4 LLL .COMs for $25k each?
What do you think? As usual, I want to hear from you – comment and let your voice be heard!