As we continue to see ever climbing prices on LLL.coms and a very healthy upper end LLLL.com market, the LL.com market seems to be struggling, with the recently reported OW.com selling for just $120,000 and now WT on Sedo, unsold at $112,000. Interesting to note that since $66,000 there were only 2 bidders on this name...
I've always been a fan of LL.coms, but they seem to have taken quite the hefty devaluation lately. There was once a time when any LL.com was unobtainable for under 6 figures -- now even strong names like OW and WT are struggling to see 6 figures and one can only imagine what lower quality examples would fetch in today's market...
It`s something very logic and simple that I already explained in my average English.
Like for the complicated Lotto systems, many people buy more if th eprice is cheap simply because is more affordable.
Potential returns also matter and while for LLLL.com and LLL.com there is still plenty of room to grow, it`s quite hard to monetize a LL.com for $500,000 despite I think that`s their value.
So instead of buying 1 LL.com , people invest in more LLL.com and LLLL.com also splitting the risk.
Even if there was the mathematical connection of prices values:
1 LL.com = 26 x LLL.com
There would be more buyers at 1/26 of LL.com price then at the full price of LLL.com simply because it`s more affordable.
When did LL.com disappeared? How much were they going for back in 2000 and who own these LL.com any ways? Big companies, people who have lots of money, and people who hates money that spend them carelessly.
WT is as close to double premium as it gets -- this is a fairly steep decline from what would have been expected. Seller had previous offers in the $200,000 range in weeks past, as per his sales thread.
people simply aren't liquid, across the board that's all
these are amongst some of the most expensive names you can buy apart from top generics or geos.
just because a domain doesn't sell at $100k say, doesn't mean it's not worth it, simply means 99.99% of people..............
1/ don't have those funds
2/ aren't willing to tie up all their funds and wait
3/ don't appreciate it's value
if you offered a van gogh on here or on an art forum for $40 million & it had previously sold year before for $80 million, it wouldn't sell for one of the reasons above, 1-3 imho. pretty much number 1/ as no-one has that kind of money mainly
it's a lean time that's all, and it's here for a while. the seller of wt.com has a fulltime job and a load of nice domains so without knowing the intricacies of his personal life, i doubt he HAS to sell, so he'd be better of holding for a year or two imo as it's a $300 - $500k domain now to an enduser imo, it's that good, but as i said if he offered me for $100k i couldn't raise those funds even though i know it would be cheap. also i know i can privately go out and source better domains for $100k
Is that different to 6 months ago, were big domain buyers more liquid then? Personally I get the strong impression big buyers are choosing to keep more cash and not invest (ie they are more liquid than in the past). I think the smaller people are probably the ones with liquidity issues (stock market losses, possible job losses, house price falls etc), rather than the people buying 6 figure names.
Here is an interesting quote by Rick Latona,
"I’ve had countless conversation with other major players whom all point out that Kevin Ham, Xedoc and some of the other bigger players have stopped bidding on what they call “trophy names”."
In my thinking if something can't be sold in a pretty short space of time for 100k, it probably isn't worth 100k. We aren't talking $40million here. The auction would have been filled with people who have over 100k in the bank.
To be honest i'm troubled with the sale of these LL.com's
I had in mind to take one LL.com (not the ones previously mentioned) at the asking price of the seller which is around $250K
It has about 1300 uniques per day from typos (not a trademark name)
I was sure it was a good name but now I reconsider it
The following is a very simple calculation I do, if I have to value a domain very fast and dont have other factors:
yearly reveneu X 10 years = value
I know this is a very simple vay, and there are many other factors involved in a real valuation, but as an fast way to value a domain, if you dont have any other information then the yearly reveneu, this is the way I do it.
With your domain the calculation shows, that it will take you 52 years to get what you have paid for the domain back.
(This is ofcourse if we take in account, that everything will remain the same, nothing is changed, and that we only know one factor: monthly reveneu)
So if your plan is not to hold on to it forever, but plan to resell it, you are depended on the market. It looks that the short time market for LL.com's is not good at the moment, so if you buy it, you either have to have it for longer investment or develope it.
All this is ofcourse just a simple quick thought of mind, without knowing any other factors about the domain.
I bet with your experience, you could learn me a thing or two.
