sales s138.com sells for $4,000

STUART MALOFF · Jul 1, 2016

I recently closed a sale for $4,000 with Domain Name Sales brokering for the domain name, s138.com.

As I alluded to more than 6 months ago, these kinds of domains are very under valued. They are much rarer than 5 or 6 number domains as well as the ever discussed CHIPs.

If I calculated correctly there are 160,000 LLLL CHIPS- 20x20x20x20
There are 262,144 Six Number CHIPs 8x8x8x8x8x8
There are 32,768 Five number CHIPS- 8x8x8x8x8

There are only 10,240 LNNN CHIPs 8x8x8x20
There are only 10,240 NNNL CHIPs 8x8x8x20

Please let me know if I am doing this incorrectly but according to my calculations, even when you combine both types of 3 numbers with 1 letter, they are still much rarer than even 5 number CHIPS which start at about $2,000. The types of domains I am discussing can be bought below $100 at this point in time on the drop.

A huge percentage of LNNN/NNNL domains are developed in China, so logic tells me at some point, these domains will heat up in the same way CHIPS did. The difference being, there are way more CHIPs available than these diamonds in the rough, so the ceiling is higher, as shown with my latest sale.

We will know down the road if this sale is an aberration or a sign of things to come, but I am bullish on these even if the price goes way up.

I normally do not discuss any of my sales on blogs, but believe this one may shed some new light on an area of the Chinese market that is rarely discussed, but perhaps should be.

A lot of people are bullish on NNLL/LLNN domains as well. I concur, but the NNNL/LNNN are still much rarer than those. If the letters have meaning such as Chinese surnames like Li/Wu/Xu then they may be worth even more than the ones I alluded to above. If not, I believe the rarity of the 3 number, 1 letter domains will have the most potential for future sales.

Joseph Green · Jul 2, 2016

Your math looks good, but just because something is rarer, doesn't necessarily make it more desirable or valuable: supply and demand.

There are far less LL.biz domains (676 total) in existence than LLL.com domains (17,576 total), but the price of any LLL.com domain is worth a lot more, because there isn't much demand for LL.biz domains regardless of their smaller supply. The demand for LLL.com domains far outweighs their supply, and therefore, they're worth more.

London555 · Jul 2, 2016

Stuart-thanks for this post. The one thing that I recall Rick Schwarz saying (and i dont read everything) is that to have real value a name must be rare. So what you've pointed out here is right on point. This isn't our main business-we own a small hedge fund but if we get our hands on an IPO it's rare and very valuable potentially-same applies here. I hope @Kassey Lee sees this thread and comments also.

London555 · Jul 2, 2016

We did also pick up 100x.co but don't know if it will ever have the same value as the .com even for China. Welcome any comments.

STUART MALOFF · Jul 2, 2016

Joseph, you're comparing .biz to .com. Rarity doesn't matter as much with other extensions.

Joseph Green · Jul 3, 2016

STUART MALOFF said:
Joseph, you're comparing .biz to .com. Rarity doesn't matter as much with other extensions.

I provided an example to explain supply and demand. I could have created the same example with different categories of .com domains, but it wouldn't have been as easy to calculate the rarity or to grasp.

My point is that just because something is more rare does not necessarily make it more valuable.

STUART MALOFF · Jul 4, 2016

Thanks Joseph. I agree with that, but in this case we have an example have someone paying a premium for the .com. It appears he owns and was using the .co, as when you click on the link it redirects to s138.co.

My point from the start was that since a very high percentage of LNNN and NNNL domains are developed in China and besides a few with 4s and 0s all are registered. These domains should be in demand more and more over time which would increase the price. Not only are they rare, they are heavily used by end users in China.

Anyone can see that 4 letter CHIPS are being used and in enough demand to command more than $1000 per sale even after it's drop in price. 5 number CHIP domains command a minimum of $2,000 a sale last time I checked .

These are much rarer than CHIPs and 5 number domains, yet used in the same manner. With internet usage growing in China and just a fraction of these .coms available compared to the CHIPs, my logic tells me these will go up. At this time, the sale of s138.com looks to be a great sale. We may reflect back at this 5 years from now and think the buyer got the better end of the deal because when looking at usage and rarity, the $4,000 was a fair price.

Buying these types of domains at their current drop prices of under $100 for most, seems like a low risk, high reward investment to me and it is now documented with a sales price similar to that of a solid 5 number domain name. The prices should be much higher and I believe the window for getting them at these prices will not be around much longer. I could be wrong, but let's just say that I was not overly surprised to sell that name for $4,000 and I believe there are many similar sales to come over time.

DnEbook · Jul 4, 2016

Congrats on sale, I do think as a golden rule a short domain has value, I have some short ones but would not base a whole portfolio around just one genre, we need patience for these names. Interestingly Namebio shows only 99 sales of LNNN .coms

STUART MALOFF · Jul 4, 2016

Thanks HireDomains! I agree no portfolio should ever be completely around one genre. I also have some LLNN and NNLL domains. In addition I have other domains with numbers connected with city codes such as JS, HG, and BJ as well as surnames connected with numbers. For example: I own Li518.com. Li is a very common surname in China and 518 means, I will prosper. Since more than 100 million people have the surname Li and 518 has great meaning in China, together I believe this will eventually sell. Having a mix of Chinese interest domains to go along with the rest of a balanced portfolio is important. I would say about 20% of my portfolio is of Chinese interest, but the rest is a mix of brandables, key word domains, and geo targeted and my sales are a balance of all of those as well.

Silentptnr · Jul 4, 2016

Nice sale! I have S134.com and many more.. Guess I'll hold on to them. Congrats!

DnEbook · Jul 4, 2016

STUART MALOFF said:
Thanks HireDomains! I agree no portfolio should ever be completely around one genre. I also have some LLNN and NNLL domains. In addition I have other domains with numbers connected with city codes such as JS, HG, and BJ as well as surnames connected with numbers. For example: I own Li518.com. Li is a very common surname in China and 518 means, I will prosper. Since more than 100 million people have the surname Li and 518 has great meaning in China, together I believe this will eventually sell. Having a mix of Chinese interest domains to go along with the rest of a balanced portfolio is important. I would say about 20% of my portfolio is of Chinese interest, but the rest is a mix of brandables, key word domains, and geo targeted and my sales are a balance of all of those as well.

Thanks your post inspired me to reg Vrc88 , I have sold a Vr name to a Chinese buyer so I figured a good fit, having said that this is the only LLLNN that I intend to keep. I did grab XX44 a few months ago, it is one of only a few double LLNN

London555 · Jul 4, 2016

STUART MALOFF said:
Thanks HireDomains! I agree no portfolio should ever be completely around one genre. I also have some LLNN and NNLL domains. In addition I have other domains with numbers connected with city codes such as JS, HG, and BJ as well as surnames connected with numbers. For example: I own Li518.com. Li is a very common surname in China and 518 means, I will prosper. Since more than 100 million people have the surname Li and 518 has great meaning in China, together I believe this will eventually sell. Having a mix of Chinese interest domains to go along with the rest of a balanced portfolio is important. I would say about 20% of my portfolio is of Chinese interest, but the rest is a mix of brandables, key word domains, and geo targeted and my sales are a balance of all of those as well.

Stuart could you share your thoughts on the best place to market these names in the future please? re: SEDO Namejet GoDaddy etc? Also-and this is for anyone-thoughts on these NLLL or LLLN in other extensions re .net etc Thank you!

STUART MALOFF · Jul 4, 2016

Hi London. I am not sure there is one market place that is better at Chinese sales other than the ones that are in China. I list mine of GoDaddy, DomainNameSales, Sedo, Afternic, and Flippa. Out of those, I have the most luck with Domain Name Sales and GoDaddy. Domain Name Sales because I am parked there and GoDaddy, because when they go to register it, they see my domains for sale.
Maybe some others have other market places that work for these that I did not mention.

London555 · Jul 4, 2016

STUART MALOFF said:
I recently closed a sale for $4,000 with Domain Name Sales brokering for the domain name, s138.com.

As I alluded to more than 6 months ago, these kinds of domains are very under valued. They are much rarer than 5 or 6 number domains as well as the ever discussed CHIPs.

If I calculated correctly there are 160,000 LLLL CHIPS- 20x20x20x20
There are 262,144 Six Number CHIPs 8x8x8x8x8x8
There are 32,768 Five number CHIPS- 8x8x8x8x8

There are only 10,240 LNNN CHIPs 8x8x8x20
There are only 10,240 NNNL CHIPs 8x8x8x20

Please let me know if I am doing this incorrectly but according to my calculations, even when you combine both types of 3 numbers with 1 letter, they are still much rarer than even 5 number CHIPS which start at about $2,000. The types of domains I am discussing can be bought below $100 at this point in time on the drop.

A huge percentage of LNNN/NNNL domains are developed in China, so logic tells me at some point, these domains will heat up in the same way CHIPS did. The difference being, there are way more CHIPs available than these diamonds in the rough, so the ceiling is higher, as shown with my latest sale.

We will know down the road if this sale is an aberration or a sign of things to come, but I am bullish on these even if the price goes way up.

I normally do not discuss any of my sales on blogs, but believe this one may shed some new light on an area of the Chinese market that is rarely discussed, but perhaps should be.

A lot of people are bullish on NNLL/LLNN domains as well. I concur, but the NNNL/LNNN are still much rarer than those. If the letters have meaning such as Chinese surnames like Li/Wu/Xu then they may be worth even more than the ones I alluded to above. If not, I believe the rarity of the 3 number, 1 letter domains will have the most potential for future sales.

Stuart-when you say "LNNN or NNNL CHIPS" I assume you mean no vowels or v? re 135q.com vs 135e.com etc Thank you!

STUART MALOFF · Jul 5, 2016

Yes, no 4s, 0s, Vs or vowels

JB Lions · Jul 5, 2016

Silentptnr said:
Nice sale! I have S134.com and many more.. Guess I'll hold on to them. Congrats!

The difference is nobody is using s134.co

"It appears he owns and was using the .co, as when you click on the link it redirects to s138.co."

Silentptnr · Jul 5, 2016

JB Lions said:
The difference is nobody is using s134.co

"It appears he owns and was using the .co, as when you click on the link it redirects to s138.co."

Ahhh, got it.. Thanks JB..very astute.

STUART MALOFF · Jul 5, 2016

JB, that is true and it is also true that the 4 will usually have a negative effect on the price of a domain name. That being said, there are better 3 number, 1 letter domains than that, as it is not a "CHIP", but in general this niche is worth monitoring.

JB Lions · Jul 5, 2016

STUART MALOFF said:
JB, that is true and it is also true that the 4 will usually have a negative effect on the price of a domain name. That being said, there are better 3 number, 1 letter domains than that, as it is not a "CHIP", but in general this niche is worth monitoring.

Your first post was going into CHIPS and combos and all that, when it was more likely that the sale happened because he owned that site. If he had a site on some other .co, you wouldn't have gotten the sale.

Silentptnr · Jul 5, 2016

Agree with you.. I dont see any data in recorded sales to indicate this sale was part of a trend or anything other than a normal end user sale.

STUART MALOFF · Jul 5, 2016

I think you are missing the point. The fact that he was originally willing to register a .co of a LNNN domain indicates that it was liked so much, he choose a LNNN over a CHIP or longer number domain, even if it wasn't a .com. He decided that the .com was worth paying for because .com is a premium asset and that LNNN is so important, that even registering one without a .com is worth it. As .net, .co and all other extensions of LNNN start to get registered, the .com will be worth more and more.
It is true if it was a different .co another .com would have sold.
The big picture is the .co of an LNNN is being registered in the first place and developed. That illustrates how strong the .com can be.

DnEbook · Jul 5, 2016

You would have to think that he realised getting the .co to start with was a mistake

STUART MALOFF · Jul 5, 2016

This was on Domain Name Sales and they do not announce their sales to the best of my knowledge. I just happened to share it because it is relevant. I think only a fraction of actual sales are listed on sites like NameBio. It is useful data, but if it does not include data from domain name sales than take it with a grain of salt. As a matter of fact, I have had several sales on GoDaddy premium listings not showing up on NameBio as well. Without GoDaddy or Domain Names Sales as well as personal sales, most sales probably do not get reported.

Silentptnr · Jul 5, 2016

I just congratulate you on the sale.. I dont usually analyze my end user sales.. There hasnt been any measurable pattern.

There is definitely a trend towards shorter names, smaller devices, etc.. I think the basic disciplines really havent changed at all.

STUART MALOFF · Jul 5, 2016

Meet The Gang- I concur, getting the .co was a huge mistake, but obviously to him, getting the CNNN was the way to go regardless of the extension.

sales s138.com sells for $4,000

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