| NamePros Regular Join Date: Jan 2008
Posts: 411
NP$: 1122.00 ( Donate)
| A lot of good points are made here. One I would add is for people to check the state of the market before jumping in, including are there any end-user sales of a domain (like are there any end-user sales of L-L-L-L that do not spell words? Probably not). Also, are there any developed sites? What kinds? What percent are developed? Getting a handle on the current market dynamics is not necessarily going to let you see in to the future, but it's a good first start. Certainly, random L-L-L-L could become the new internet trend in the next five years, every one and their grandmother could be setting up sites that are X-U-Y-P.com and be willing to pay $xxx for these domains. But it's highly unlikely, and you can say that because nobody is paying for these right now.
I "jumped on" the NNNNN.com buyout because I saw a very good current market for these, some nice high-value end-user sales, lots of potential uses (foreign postal codes, mobile phone sites, product related sites), decent traffic, nearly 1/2 of these domains were already developed sites, many in the fast-growing Chinese market, and I saw that Chinese domainers were buying these domains en masse. It is still a risky investment (although one with potential for huge profits), although I think given the market fundamentals and all the possible uses for them they will do well. But the point is that there were valid reasons to make a calculated risk and invest in the buyout, I don't see valid reasons to invest in a lot of the other things people are getting excited about, and I'm not sure if they do as well other than that it is a "buyout". On the other hand, things like LLLL.com's and LLLL.net's do make sense, as they have good fundamentals and are probably a great investment for 10 years from now, and will probably significantly outperform standard investments over this time period. But they are very risky for the short-term, and people should understand that.
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