Labeled as analysis in Domain Industry News started by News, Sep 26, 2018.
I have a LLLL.com domain with meaning in some lands in Scandinavia. It is with a norwegian letter similar to o but with a line in it, wouldnt that be worth about $10K?
Rick is 100% spot on with that evaluation. People are too impatient and after a quick buck.
I am sitting on 4 LLL.coms, I hope you are right, I am not selling them in the near future for sure, My son is vested in two them, so i hope for his sake, that you are right, two of them i bought off a classified ads site, no i wont say which one lol, One i bought in 2006 for $6,200 ,and i went to my bank and took out a personal loan to buy it. another one was a partial trade for website i owned, my cost on it out of pocket was $2800 after all said and done.
I worship those domains, i will be pretty upset when i sell em.
Great news for me then! - RFQ.com
Not everyone is in Rick’s financial position in that he can turn down high 5 and 6 figure offers and not think twice about it, people need to do what’s right for them and their own financial needs.
Dave L made a good comment in his blog. If Rick is slamming “clueless domainers” for selling LLL domain assets for $1k, $5k, $25k, then why isn’t Rick taking advantage of this and buying all these domain assets up cheaply rather than writing a blog about it criticizing such low prices?
Truth is, this is just the authors attempt at trying to influence the market, make people put prices up on their LLL, therefore making his own LLL more valuable.
To me this has nothing to do with financial fitness perhaps just classic "slumlord" mentality. Would SXW.com trade for $80k tomorrow i think not.
He still has his prefix "e" names listed at $1m+ to me he is [Absolutely Clueless] or has his head up his own ass - he can't see light of day - good luck to him. The market is priced correctly as it is.
The 3L market is highly liquid and efficient and great as it is. His posts only inspire new slumlord imitators > good luck to you too, report back tell us how far it gets you.
It's a two-dimensional swing, the more slumlords the more startup's&businesses move away form .com to other extensions. Then slumlords ridicule new extensions
Ethereum being the most potent example - They had close to $700m in cash reserve's, out of principle they choose not to pay any slumlord. The domain remains parked without ever finding a home
Classic BS conflict of interest, Why he bothers open his mouth in the first place...........
This is pointless article.
There are different strategies.
If LLL.coms can be obtained for $13500 (vju at Namejet on days) or iez for $16,500 (same venue), it might make sense for buyer to sell for $35K and reinvest in 2 other LLLs, of course doing his due diligence (end users, potential of the name vs what he acquires etc.).
Let's just remember that there are 16+ times more LLLs than NNNs and NNNN would be a closer comparison to them.
NNNs are more comparable to LLs than to LLLs.
Every valuable domain has endless potential the only things is How much you would wait and where you would like to sell.
If I want to convert some quick bucks from my recent purchased name I would not care about $100k or $1k I would be happy if I get more then $500 within a week.
HeHe, so tell us how you really feel
Personally I think there are junk 3 letters and there are really good ones. I think Rick is correct on some but other odd ball letter combinations will always be of lower value.
So all in all the end users will dictate the price and I would bet that Rick will be right on a few and others will never sell anywhere near his estimation.
So a crap shoot at best and no better or worse odds than any kind of gambling.
Just my opinion.
If Rick is correct, he wouldn't be posting about it. Instead, he'd put around $1MM to scoop all $15000-25000K names within next year or too.
He'd get around 50 names that he believes will sell for $300K+ each, i.e. will turn his million into 15MM in "near future" as he puts it and he would immediately push floor for LLL up, as there are not many of them coming up for auctions in that price range.
Instead, he blogs...
When he sold eBet for $1.3MM I bet he felt pretty clueless as well.
Though, I will say that all LLL.com domains are definatley NOT worth six figures.
Especially with many sales behind the scenes for very low 5-fig, and even 4 fig desperation sales.
Doubt there are any at four figures, because you could easily get more than that on any platform. Rick is not the only one who thinks all domainers sell too cheap, years ago I remember another big domainer tell me he thought BuyNames hurt the business by selling too cheap. But that's not their model, they need the turnover on a consistent basis.
The facts of domaining is that the majority of participants are not liquid and have low to zero cash reserves.
That is 1000% correct.
On separate topci, there is a post on morgan Linton's blog by someone that has experience in LLL's and it seems very good advice:
Rick is out of touch, period. I don’t say this as someone who is jealous, I’ve owned 60+ LLL.com over the years, a couple NNN.com, even a few CC.com.
He says domain investors are selling them for 1/10th of their worth. Duh, that’s just the difference between wholesale pricing and retail pricing. Basically what his “advice” boils down to is don’t ever sell to another domain investor because you can get more selling to an end user. What a revelation. Too bad not everyone got in super early, made a killing on porn, and could sit and wait for the perfect buyer. Most people have to hustle. If he actually believed what he was saying, with his bank roll you would see him winning practically every LLL.com auction today, but you don’t see that.
If I had only bought and held back in the day, I could have maybe afforded two LLL.com. The odds of me selling any of those in the next decade to the perfect end user is practically zero, theoretically it might not have even happened in my lifetime. But instead I flipped them for 2-5x to other investors, bought more, flipped those, and kept rolling up and out. In the subsequent decade I made hundreds of thousands of dollars doing this. Had I just sat and waited I might still be sitting on those same two LLL.com domains having not made a dollar to reinvest.
He’s talking from the perspective of someone who built up enough quality inventory early enough, mostly playing with profits and porn/parking money that isn’t around today, that he could just wait on every single domain and still make a great living. Almost nobody except institutional money can do that today. And even if you have the money it doesn’t really make sense… just do the math.
How many LLL.com would you have to own to sell one for six figures each year? I have it on good authority that the number is more than 250. At an average cost of $25k that’s $6.25 million invested to maybe make $200k a year on average. That’s a 3.2% return, barely above inflation and way below throwing it in an index fund.
You have to understand that the people buying numerics today are not buying them because they can get 10x returns to end users. It’s a different game than buying at wholesale and waiting for retail and benefiting from the inefficiency in the market. They’re buying them as a store of wealth hoping to flip them to the next fool (domain investor) for 20-30% gains a few years down the road. Also some of it is just money laundering. It isn’t investing, at best it is speculating and at worst it is gambling. It’s like saying you’re “investing” in crypto.
You’re also more than two years late to this party. There was a great run up in numerics that made a lot of people a lot of money. It was a bubble fueled by greed and FOMO. Then they got cut in half or worse, and now they’re kind of just trending sideways (much like crypto will for a few years). They will definitely not hold up well during the next recession, not relative to LLL.com or words.
Listen to Bill, just keep doing what you’re doing as it is working for you. Don’t chase BS hype machines, especially not several years after they peak. And don’t listen to Rick, his advice generally only applies to the top 1% that got in two decades ago. The rest of us are playing a different game. Don’t get me wrong, the man is a visionary. He saw value where few else did. He had the nerve to hold out for incredible prices. He worked out some brilliant cash+equity deals. But 95% of that success is predicated on already being in an extremely strong position early on due to a different environment.
Rick, if you’re reading this… start a separate portfolio with $10k and blog about your progress along the way. See where you stand in two or three years. Then instead of writing people off as haters or idiots when they say your advice isn’t relevant today you’ll understand where they are coming from and can maybe get a fresh perspective. With prices being where they’re at, $10k will maybe get you 5-10 fairly mediocre domains on the drop auctions, which could take 10+ years before you see a single passive sale in the $x,xxx range. It’s pretty bleak out there.
Have you checked though you might find he investing in some LLL names, it makes sense or him to invest in them if he is going to try and pump up the prices. Rick has been around log enough to know how may LLL names to invest in without being too much of a risk. Even if you have made a lot of money from domains, it doesn't mean you go crazy and thrown in a lot of money into 1 niche. They have made money from this game because they know the industry, they invest smartly in different niche's and the fact that they got into the game early.
One i have gets offers in the 25 to 30K range all the time, I wont sell it for that, and the offers i am getting have to be 98% domainers, I myself can put a price on it, because i own it, I would dare put a 1M price on it LOL, but i do know what it would take for me to let it leave my side, I know if i need money fast, i can sell it. but it has been paid for some years now, why would i want to sell my liquid gold? I don't, My 4 LLL.coms are going to be a part of my retirement living, and i am going to need more than 4 LLL.coms to help in that aspect, I figure i will look into selling them in about 7 more years, I work 40+ hrs a week and make an income now, when i retire, my SS wont hold up a post, I am going to need all the help i can get at that time.
Whether he had or not is irrelevant
His post sounds like he is absolutely certain regarding LLLs skyrocketing.
If one believes that much that the value of an asset will increase tenfold in near future, he should be scooping up.
If I see a category which I believe is a bargain, I quietly keep buying based on availability and budget. I am happy wholesale is low. I don't try to hype and pump.
Pump and Dump is very uncool and people get hurt in that process, I really don't anticipate my LLL.coms being worth any 100K apiece, That is a real stretch IMO, more around possibly 50K to 70k at the end. but if they were to bring a 100K price tag, and everything is legit about that pricing, I would be ecstatic.
You have to distinguish between a) reseller sales (support your cash flow, small return that you can reinvest); b) end user sale normal; c) end user sale for the benefit of cash flow.
If I have an opportunity to buy premium name at mid-high $xxx, I don't mind selling to fellow resellers at high xxx-low xxxx, given that I can replenish the stock with similar quality name.
For end user, if I don't need cash for another opportunity, I can walk away from four or five figure offer, as I know that it is numbers game. 80% of 5 $5K offers closed because of the discount is $20K, 60% of 5 offers that led to $10K sales (because of insisting on minimum price) will give you $30K. Sure you lost one $5K sale (and one is lost because people get cold feet even after good price or something else goes on), but overall you made more money.
You have 3 LLLs? Do you think with a bit more flexibility you could have turned it into 4 or 5 names by now of similar quality?
One example from another category. I bought 3/news/com for myself for low $xxxx. Got an offer for mid $xxxx, sold, bought L/news/com for low $xxxx right away. Now I have L/news.com for free and small profit.
Classic "I don't have good domains, heck I don't even know what is a good domain"
Sour Grapes Missed the Fudging Boat Preaching to the same kin...
MSN... is this crappola yours?
"The difference between a $35k LLL.com domain and a $350k LLL.com domain is the seller!"
Perhaps i could have sold one or two and reinvested to get a couple of more LLL.coms or perhaps some other domains, But i am a Blue Collar domainer so to speak, I work a full time day job, and domaining is second to my career, I try and keep on top of things with my domain names, sites and domaining in general, but sometimes my work is calling louder than domaining, I bought my LLL.coms at pretty bottom end pricing, one back in 2006, another in 2007, and two more , which were pretty much luck, i bought them from a local estate sale that i found on a classified ads site.
I am pretty content with what i have in LLL.com, and i don't for see me selling one to make further investments in domaining with them, they have been payed for for a while, I am still investing in names no doubt, but i am funding my investments with capital made from domaining itself these days, so that is a plus, as opposed to what i used to have to do, fund my domaining through my day job.
Sure. Everyone finds their own perfect way. Was wondering why haven't you listed your LLLs on your Namefeature website?
All the domains listed on namefeature.com are very recently acquired domain names, either hand reggies or purchased within the last 6 months, when it comes to posting domain names, a person better be damn careful, I had a website "click bombed" and lost my adsense privileges, I had bots sent to my names that got them blacklisted by Google, i have had names blacklisted by Google for spamming, none of which i did.
You feeling me yet?
The prices will certainly rise, they are the lowest they have been and there is only one thing that can happen now. As to how high they will rise, thats anyone's guess and we will have to wait and see.
As I said, you dont know if he is scooping them up? Have a look at some of his names and the "updated" date on the WHOIS? You may be surprised
Separate names with a comma.