Investing in 5 Letter Domains?

[Hopi]

Hello everyone,

i'm relatively new to this forum and i just want to say that i really enjoy reading through this forum. Nice people and very interesting and helpful threads.

Now i have one question about investing in 5 Letter .com Domains (preferebly Premium Letters). Does it make sense to invest in those names now that all 4 Letter .coms are gone?

I mean we can play that game forever: If all 5 Letters are gone, then 6, then 7...? Many 5 Letters are gone, yet.
But maybe if the 5 Letters are rare in the future it maybe makes sense to invest in these names now, just like the 3 and 4 Letters. They could also get high value.
It's the same thing with all others, things that are rare have high value.

I'm just thinking about that in the moment, so i'm just interested in what you think.

Thanks for your replies.


Regards,

René

 

[martinisky]

its a bit of a numbers game once you think about it....

about 17,000 LLL.com's exist
about 450,000 LLLL.com's exist
and about 11,000,000 5L.coms exist

so it will most likely take YEARS and years before the 5L's sell out....but i think eventually they will, and at that point they should increase in value.....

a lot of the really good 5L.coms have already been registered but there are still some really nice beauties out there if youre looking... i think the big seller for 5L's is prounouncibility.... there are over 11 million possibilities but how many of those are really pronounceable and memorable? If you can find one that isn't regged yet that has these qualities then its probably worth more than reg fee already.... in time i truly believe these 5Ls will increase in value, but you have to be patient for sure.... regging dwitj.com and expecting to retire on it is not a smart idea.... i can say with some confidence that most domainers here will agree that a good pronounceable 5L.com will definitely increase in value in the years to come....but keep in mind everything has risk involved and nothing is a sure thing, but having a few 5L.com beauties laying around isnt a bad idea long term. IMO

best of luck!
take care.

p.s.... take a look at some threads here as there are a ton of great 5L.com threads out and about so you can get an idea of what kinda 5L's people like and learn more about this 'genre'....

 

[accent]

'case you have not found it yet:
Go to the top of this page where on the left is says:
NamePros.Com > Domain Names > Domain Name Discussion
click the "Domain Names" part of that.
Look down a bit for the Short Domain forum.

You could spend a week there reading and it would be time well spent.

Other than that, Martinisky covered it very well. Pronounceable LLLLL.coms are probably the best area for new domainers without the money for LLLL.coms (consider picking up a few, anyway), but like anything else around here the more knowledge you have the better decisions you will make - I cannot think of another investment where a person is confronted with as many choices as domains.

 

[HappyBunny]

If you want to "invest" then you want a good ROI.

A .com will cost you $7-$10 per year (depending on your registrar and coupon codes).

So, for really really good names in the $xxx range, it makes sense to hold and wait for another 10 years. They will surely appreciate. Otherwise... you will lose in renewal fees. It really depends on your specific name(s).

 

[srigopaldaliya]

If you want to "invest" then you want a good ROI.

A .com will cost you $7-$10 per year (depending on your registrar and coupon codes).

So, for really really good names in the $xxx range, it makes sense to hold and wait for another 10 years. They will surely appreciate. Otherwise... you will lose in renewal fees. It really depends on your specific name(s).

As a businessman i think if i invest 10$ per year till 10 year, then its not just 10*10 = 100$ i have invested in that domain... I will also consider min of 2% per month interest on it, and thus the figure will come whopping high to around 450$. So if i have to invest 10$ per year for next 10 year on a domain then i think at the end of 10 year the cost of that domain for me is 450$. I wouldn't be interested in it unless i can sell it in atleast in low $x,xxx.

This is just my way of calculations. Others may not agree to it :gl:

 

[accent]

2% per month compounded monthly is a very nice ROI. I am not sure where you can get that without a lot of risk - unless you put it into your own business, an option that most investors do not have, or we should assume that they do not have, anyway.

I am not sure of HappyBunny's point but let me put it this way:

If you buy on the aftermarket or from an auction like Snapnames you will pay a certain amount to buy the domain, plus renewals until you sell. The purchase amount is spent, the renewals are optional but you are not likely to drop a domain that you paid a lot for. Renewals are a smaller percentage of the final cost and of the final sale price.

If you register a drop that has cleared the auctions or an unregistered domain you can, with effort, find a domain that has some value now. That value you get free (except for your time finding it). You pay renewals, but you have the option of dropping the name if you find better investments. If you sell the name quickly your cost is minimal. Your initial investment is a a small part of your ten year cost, and you have the use of your money for other investments until each year's renewals are due.

 

[Kate]

Now i have one question about investing in 5 Letter .com Domains (preferebly Premium Letters). Does it make sense to invest in those names now that all 4 Letter .coms are gone?

The LLL (3-letter) have always been good because they are used for acronyms.
As for the LLLL it's more difficult to make good acronyms with them. The brandable are still good. But IMHO the LLLL market is overrated right now.
For the 5-letter I would say pick only the real good ones (pronounceable and brandable). Brandable names are not very liquid so for investment purposes I recommend that you diversify your portfolio. Brandable/5L should not exceed 10% of your assets or you will have cash flow problems :]

 

[Hopi]

Hm hm, cool thanks. Very good points here. I will think about it a little.

 

[deleted984054565403]

I'd only take the really good ones, since I don't believe five-letter .coms will sell out within the next several years (there are nearly 12 million of them). They're really not much of an investment unless the names pay back their renewal fees through parking each year. :imho:

I'm buying five-letter names as much as I'm buying six- and seven-letter names. I'm taking them for their pronounceable and brandable qualities, not solely because they're exactly five letters in length. I'd rather take a six-letter domain with spelling you can't mess up over a five-letter name that's a real stretch to spell, pronounce, and remember.

 

[friend1]

I'd only take the really good ones, since I don't believe five-letter .coms will sell out within the next several years (there are nearly 12 million of them). They're really not much of an investment unless the names pay back their renewal fees through parking each year. :imho:

I'm buying five-letter names as much as I'm buying six- and seven-letter names. I'm taking them for their pronounceable and brandable qualities, not solely because they're exactly five letters in length. I'd rather take a six-letter domain with spelling you can't mess up over a five-letter name that's a real stretch to spell, pronounce, and remember.

Your strategy seems so different. Let me think also.

 

[KingDon]

If you can pronounce the 5 letter name you're buying, and if a person can repeat it back to you AND spell it, it's a winner. That's what has worked for me over the years,

 

[Nsane Domain]

I'd only take the really good ones, since I don't believe five-letter .coms will sell out within the next several years (there are nearly 12 million of them). They're really not much of an investment unless the names pay back their renewal fees through parking each year. :imho:

I'm buying five-letter names as much as I'm buying six- and seven-letter names. I'm taking them for their pronounceable and brandable qualities, not solely because they're exactly five letters in length. I'd rather take a six-letter domain with spelling you can't mess up over a five-letter name that's a real stretch to spell, pronounce, and remember.

Very well put. I agree 100%.

Having the name both pronounceable and brandable along with easy spelling is the key because the acronym angle that helps the "value" of LLL and LLLL.coms goes out the window very quickly with domains over 4 characters. I believe many people overlook this.

Welcome by the way!!

Nsane