- Impact
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I may be somewhat optimistic in this title, but I thought I'd offer a few comments for posterity's sake, and I welcome your agreements or disagreements.
Consider these points:
1. In 2004, the un-registered supply of pure 3-letter domain names in .info, .biz and .us have all been registered. This now means that pure 3-letter names in all the top extensions of: .com, .net, .org, .de, .co.uk, .info, .biz & .us are all registered and can only be purchased via a rare drop or from the private marketplace. (In addition to this, all 3-number names in these same extensions are all taken, as are all 3-character names in .com).
2. The domain marketplace in 2004 has seen an incredible valuation boom, particularly in the 3-letter marketplace. In January, 2004, the minimum wholesale sales prices (according to my research on the major dn boards) for 3-letter domains composed of even poor letters were:
.com = $375
.net = $50
.org = $15
.info = $5 (Some people were selling their names at a loss to Reg Fee)
.biz = $2 (Some people were selling their names at a loss to Reg Fee)
.us = $2 (Some people were selling their names at a loss to Reg Fee)
Now compare this to values researched from the same boards in October 2004:
.com = $875
.net = $175
.org = $30
.info = $25
.biz = $15
.us = $12
Notice that all extensions listed saw a sharp increase in minimum wholesale value in just 10 months time, and no slow-down to the increase is in any way foreseen for the future.
3. The remaining supply of non-end-user held 3-letter domains (defined as 3-letter names still held by speculators/dealers and not by end-user companies) has greatly dwindled. This can be attributed to many factors, including the continual sale of 3-letter domain names to end-users by name holders as well as the influence of Elequa who personally owns thousands of the limited number of 3-letter names in .com, .net, .org, .info and .biz and has pledged never to sell them (thus becoming his own end-user), of which many of these said names were purchased by him in calendar year 2004.
4. End-user demand for 3-letter names has continued to grow, as many companies have come to value a respectable web presence, which includes owning their own business name's acronym. This can only be accomplished by purchasing their desired name from the current owner.
--> My Analysis (and editorial):
In consideration of the above info and research, it really seems possible to me that the market for pure 3-letter domains is in the beginning phases of a long-term boom. As demand rises at a strong pace, and as the general domain marketplace is on a very strong bounce-back from the .com "recession" of 2000-2002, I can't help but be very optimistic, and more than happy to invest in the 3-letter marketplace. And as all this is said, I have yet to mention the huge growth in domain parking for revenue, which has additionally allowed those investing in 3-letter names to make additional income from their names!
So My Question:
With all of this said, do you share in my optimism? Is this a proper analysis or am I way off base?
I'd love to hear your opinions (agree or disagree)!
Thank you,
Andrew
Consider these points:
1. In 2004, the un-registered supply of pure 3-letter domain names in .info, .biz and .us have all been registered. This now means that pure 3-letter names in all the top extensions of: .com, .net, .org, .de, .co.uk, .info, .biz & .us are all registered and can only be purchased via a rare drop or from the private marketplace. (In addition to this, all 3-number names in these same extensions are all taken, as are all 3-character names in .com).
2. The domain marketplace in 2004 has seen an incredible valuation boom, particularly in the 3-letter marketplace. In January, 2004, the minimum wholesale sales prices (according to my research on the major dn boards) for 3-letter domains composed of even poor letters were:
.com = $375
.net = $50
.org = $15
.info = $5 (Some people were selling their names at a loss to Reg Fee)
.biz = $2 (Some people were selling their names at a loss to Reg Fee)
.us = $2 (Some people were selling their names at a loss to Reg Fee)
Now compare this to values researched from the same boards in October 2004:
.com = $875
.net = $175
.org = $30
.info = $25
.biz = $15
.us = $12
Notice that all extensions listed saw a sharp increase in minimum wholesale value in just 10 months time, and no slow-down to the increase is in any way foreseen for the future.
3. The remaining supply of non-end-user held 3-letter domains (defined as 3-letter names still held by speculators/dealers and not by end-user companies) has greatly dwindled. This can be attributed to many factors, including the continual sale of 3-letter domain names to end-users by name holders as well as the influence of Elequa who personally owns thousands of the limited number of 3-letter names in .com, .net, .org, .info and .biz and has pledged never to sell them (thus becoming his own end-user), of which many of these said names were purchased by him in calendar year 2004.
4. End-user demand for 3-letter names has continued to grow, as many companies have come to value a respectable web presence, which includes owning their own business name's acronym. This can only be accomplished by purchasing their desired name from the current owner.
--> My Analysis (and editorial):
In consideration of the above info and research, it really seems possible to me that the market for pure 3-letter domains is in the beginning phases of a long-term boom. As demand rises at a strong pace, and as the general domain marketplace is on a very strong bounce-back from the .com "recession" of 2000-2002, I can't help but be very optimistic, and more than happy to invest in the 3-letter marketplace. And as all this is said, I have yet to mention the huge growth in domain parking for revenue, which has additionally allowed those investing in 3-letter names to make additional income from their names!
So My Question:
With all of this said, do you share in my optimism? Is this a proper analysis or am I way off base?
I'd love to hear your opinions (agree or disagree)!
Thank you,
Andrew
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