Llll.com undervalued or lll.com overpriced?

[1john2004]

My calculations are:
There are 17.576 lll.coms
There are 456.976 llll.coms

The quantity of llll.coms is 26 times as lll.com
Minimal price for any lll.com is $6.000
Does it mean that min. price for llll.com must be 6.000/26=$230.

What do you think?

 

[-REECE-]

I'm gonna say LLL.com undervalued and LLLL.com even more undervalued :imho:

 

[1john2004]

I'm gonna say LLL.com undervalued and LLLL.com even more undervalued :imho:

Sure! I am on your side! :hi:
but does my calculation seems logical ?

 

[-REECE-]

Sure! I am on your side! :hi:
but does my calculation seems logical ?

Yes, I would say so.. Far less acronyms with 4 letter names, but a counter argument would be that far, far, far more people can afford to drop $200 on a name versus $6,000+ (pretty much exclusively domainers and corporations). Four letter names may be more attractive to third world businesses who cannot afford 3 letter acronyms, or to the hundreds of thousands (millions?) of small businesses in North America and Europe.

edit: I do believe we'll see a market correction towards 1/26th of LLL.com's value within 5 years.

 

[1john2004]

Yes, I would say so.. Far less acronyms with 4 letter names, but a counter argument would be that far, far, far more people can afford to drop $200 on a name versus $6,000+ (pretty much exclusively domainers and corporations). Four letter names may be more attractive to third world businesses who cannot afford 3 letter acronyms, or to the hundreds of thousands (millions?) of small businesses in North America and Europe.

edit: I do believe we'll see a market correction towards 1/26th of LLL.com's value within 5 years.

But also : far, far, far........ more people can afford to BUY $200 name versus $6k domain

 

[Malaysia]

3chars wholesale price are 5.5k , so lets say some company endusers cant afford that ammount..he wont mind paying low $XXXX or at least few hundred for a LLLL.com

 

[sashas]

Quality LLL.com undervalued by about 5k each, bad LLL.coms (Zqx.com) overpriced by about 2k

LLLL.coms are just about right currently

 

[-REECE-]

3chars wholesale price are 5.5k , so lets say some company endusers cant afford that ammount..he wont mind paying low $XXXX or at least few hundred for a LLLL.com

Here's a real world example for you... Where I live in Manitoba, Canada, our local Safeway sells VZV grapes (the company is called VZV). I have no idea if they're big or small, but would VZVG.com be a bad name for them, branding it as VZV Grapes? I don't think it's any worse than the LLL.com in this particular example, and it'd save them a whack of cash

 

[Marck]

Here's a real world example for you... Where I live in Manitoba, Canada, our local Safeway sells VZV grapes (the company is called VZV). I have no idea if they're big or small, but would VZVG.com be a bad name for them, branding it as VZV Grapes? I don't think it's any worse than the LLL.com in this particular example, and it'd save them a whack of cash

But what about v-z-v.com? :hehe:

 

[Michael]

but does my calculation seems logical ?

I would have to say no, because your calculation assumes the relationship of scarcity to price is linear. In reality things are never that simple. Besides, it is kind of a stretch to say almost half of a million domains in a certain category makes them scarce, so it's kind of comparing apples to oranges.

I've often wondered why LLLL.coms with repeating letters aren't higher in price. Think about one with 3 repeating letters. There was one on Snap earlier this week (SNNN.com). There's only 1,300 possibilities for that, so they're even more rare than an LLL.com :lol:

 

[1john2004]

I would have to say no, because your calculation assumes the relationship of scarcity to price is linear. In reality things are never that simple. Besides, it is kind of a stretch to say almost half of a million domains in a certain category makes them scarce, so it's kind of comparing apples to oranges.

I've often wondered why LLLL.coms with repeating letters aren't higher in price. Think about one with 3 repeating letters. There was one on Snap earlier this week (SNNN.com). There's only 1,300 possibilities for that, so they're even more rare than an LLL.com :lol:

It seems that everything is not that simple as it looks…. Then, could you please explain why any lll.com cost $6k? What is the reason? Scarcity?

 

[-REECE-]

I would have to say no, because your calculation assumes the relationship of scarcity to price is linear. In reality things are never that simple. Besides, it is kind of a stretch to say almost half of a million domains in a certain category makes them scarce, so it's kind of comparing apples to oranges.

I've often wondered why LLLL.coms with repeating letters aren't higher in price. Think about one with 3 repeating letters. There was one on Snap earlier this week (SNNN.com). There's only 1,300 possibilities for that, so they're even more rare than an LLL.com :lol:

There's also 26 times more LL.coms than LLL.coms with 3 repeating letters, but I don't think we'll be seeing those LLL.coms fetching 26 times the price of them LL.coms (other than XXX.com) anytime soon :imho:

Okay, so there's more than rarity to the equation :hehe:

 

[DomainMagnate]

interesting points there.. well we'll see


I think LLL.com's are actually a little overpriced.

LL.com's are worth about $80k which is also not 25 times more than $6k, but rather 14x :imho:

~MG

 

[GreenGambler]

You guys do make some good points.

And I think that LLLL.coms will level off to be about 1/26th the value of a comparable LLL.com. So YZXQ would be 1/26th the value of YZQ and AOTR is about 1/26th the value of ATR. Give or take some here and there.. lol

 

[RJ]

Quality LLL.com undervalued by about 5k each, bad LLL.coms (Zqx.com) overpriced by about 2k

LLLL.coms are just about right currently

My opinion is close to sashas. LLL's with good letters are under-priced when lumped together in a price bracket with over-priced lesser quality LLL. Too often quality and usability of a domain is overlooked when applying "minimum wholesale values".

Same could be said for LLLL's as well.

 

[accent]

My opinion is close to sashas. LLL's with good letters are under-priced when lumped together in a price bracket with over-priced lesser quality LLL. Too often quality and usability of a domain is overlooked when applying "minimum wholesale values".

Same could be said for LLLL's as well.

I think the value of low quality LLL.coms is driven by collectors, and a little bit by endusers who think a three letter name gives image and memorability. Domainers want a LLL.com for bragging rights, consolidators buy any below a certain price because they hire low wage employees and need simple rules for them.

All this will work in the favor of LLLL.coms as well. I have been wondering if the 1/26 of LLL model is real since my first post here at Namepros, I still have not found anything to contradict it. And I think, barring recession, it will be more like two or three years. And remember that LLL.coms will be higher then.

 

[Daniel]

By this equation surely...

count(LLLs) == count(L-L-Ls). (17k or so for both)

value(LLLs) == value(L-L-Ls)

Just a little tidbit. :p

 

[1john2004]

By this equation surely...

count(LLLs) == count(L-L-Ls). (17k or so for both)

value(LLLs) == value(L-L-Ls)

Just a little tidbit. :p

Big mistake You are comparing now 3 characters and 5 characters

 

[jacal1]

I know its crazy to go against the LLLL tide here at NP, but I have to disagree with the math, and here's why: The relationship between the amount of "precious" things and their value is not linear. If there was 26 times more gold, diamonds, commercial property, residential property, oil, or gas, then the value of existing ones would plummet more than 26x. Or, put another way, if we woke up tomorrow and a huge survey said there was half the oil that we thought there was under the ground in the world, the price would go up 5-10x, not twice. If several million of us found gold in our backyards and it became 26x as plentiful, the value would drop tons.

I truly think that all LLLLs will see at least a short term spike because of sudden interest. But I think the longer term picture for "very poor" LLLLs is more like $60-$70 than $250, but still a good ROI.

I am a convert in one way - if you absolutely wanted the surest way to make more money in domaining than you could have in a CD or something over the past year, LLLLs for reg fee was the way. That I am sure of, even with the bad ones.

 

[1john2004]

I know its crazy to go against the LLLL tide here at NP, but I have to disagree with the math, and here's why: The relationship between the amount of "precious" things and their value is not linear.

We are talking now about absolutely the same quality things. The different is just their quantity.