LLLLL.com (5 Letter) Sales and discussion thread

[GlobalDomainer]

Hi guys,

Like anyone of you, I am always searching for new trends. For the last 18 months I went really deep into the LLLL. I placed my bets, and now only have to wait for all them 4 letters to be :sold:

So I was thinking. What would be a nice new niche for me to get into? My answer after some thinking and testing is actually quite simple. I decided to invest in quality LLLLL coms. I know I know, it is not actually a new trend and not really a niche. But I tell you, these 5 letter domains can become big business in some time :imho:

Why? Because quality 5 letter domains are extremely brandable. Lots of startups there looking for a brandable short name, especially the web 2.0 based ones. Quality 5 letter domains generate also natural type in traffic as I experienced myself. And ofcourse, it is dotcom based, the only safe bet you can make I believe.

I also believe that not all 5 letter dotcoms will be sold shortly, maybe they will never be. You really need to have quality names. But that is also a question I have for you. What is a quality name in this niche?

So maybe we can make this thread a bit sticky and share thoughts and experiences in developing this part of the domain market.

Oh yeah, just to share this with you. I recently acquired sygar, lyned, jebia, sebod, pifab, pobit, samau and penep.

 

[TMarkus]

That's a $30 Million a year in reg fees.

What is $30 Million? it is nothing

 

[mwzd]

What is $30 Million? it is nothing

Yeah, 442k more $68 sales and you're there.

And that's assuming it doesn't close at $11.

 

[Flipsbay]

Yeah, 442k more $68 sales and you're there.

And that's assuming it doesn't close at $11.

Tmarkus is some what right. There are 160000 4l chinese premium if you take its minimum price which is 1000$ we get a 160 million$ valuation, to which 30 million is nothing. its a new category of investment 4l.coms was not enough for chinese to wet there beak. lol

i would say this 5l.com market will be a 500 million$ up market. but i also think not every 5l.com is worth it even though if they sell at 20$ each minimum ( any cp 5l.com ).

Thanks.

 

[Flipsbay]

Oh 500$ million $ might seems a lot of money but to us. Think about 100's of millioneer's and what if a billionire is involved.

Lol i am getting a bit over the top.

Thanks.

 

[Andrei P.]

Oh 500$ million $ might seems a lot of money but to us. Think about 100's of millioneer's and what if a billionire is involved.

if, if, if, if, if

too many ifs. I purchased 200 items just not to be too embarassed once they are all bought out and in 1-2 months minimum price is 50$ for any 5l chip ))) If not, then I will not be too embarassed to drop all of them because selling one 4L chip a month ago instead of selling it now would make even more loss )))

I'm not too optimistic about this buyout and I think all the money invested will be burnt, unless we do really have a chinese billionair ready to create new digital currency/stock - domain names.

 

[krx]

5L has been the underachieving, overlooked little brother of 4L for a long time. Nobody ever expected much from him. But times they are a changin. Little brother is growing up and we may have to start looking at this namespace in a different light, the same way we adjusted our perception as digital domains went from 4N to 5N to 6N .. and beyond. We now see value where we once saw folly.

The main thing the 5L "namespace" has going for it is it is .com -- DOT COM! -- and the second best thing is that it is just one letter longer than 4L. One letter. That is not much in the grand scheme of things. Why should one letter be such a curse and a stigma when 2, 3, 4 extra digits are not? One extra letter does not transform a 4L.com into some new gTLD that no one has ever seen before.

Yes, it adds about 11,425,000 names. Granted. That's not nothing. But the domain industry is getting flooded with new domainers and investors and what seemed inconceivable a couple months ago has become commonplace. Buyout after buyout. More domains being registered than ever before. What if this new "digital asset" commoditization of domaining is just getting going? If so, 4L.com will become the new 3L.com and 5L.com will become the new 4L.com. Of course by the time that possibility starts to appear on the horizon all good 5L names will be gone, in Chinese investors long-term portfolios or on the aftermarket selling for many multiples of what they are available for today, ie, regfee. Look at these 3L prices from 2011-12, about what 4L chips get today...

If this is just the beginning of a new domaining paradigm, then right now everything is undervalued -- 3L, 4L, and 5L. The big Chinese investors see this. Western domainers steer toward immediate profit. The Chinese seem to understand this is a longer term play.

Prices move up in a spiral. There is an ebb and flow. For example, it is no coincidence that the 4L.com floor (for any 4L, not chips) stalled out at around $300. The standard formula for establishing value is to divide by the number of domains in the lower namespace. $300 over 26 (the number of additional 5L) = $11.50 market value for any 5L. About $4 more than reg fee. That's profit, and that's why the Chinese and Western premiums are getting sucked up right now at the rate of 100,000 per day. They are already worth 5 to 10 times reg fee. Once they are not available for $8.50 any more they will all rise to current market value, which is tied to 4L.com prices, which are tied to 3L.com prices. If the floor for any 3L.com right now is $40k, than any 4L.com should be $1500. 5 times what they currently sell for. If any 4L is worth $1500, then by the same calculus any 5L is worth about $58. And the floor for 3L right now may look cheap in a year from now.

Right now, the availability of 5L.com for reg fee is keeping the floor artificially low on the 4L and 3L spaces. Once the chips are gone we should see an adjustment. 4L and 3L chips will go up and the regular (non-chip) 4L and 3L will get pulled up by their proportionate value (ie, they are worth a proportion of chips). Then the next round of 5L buying will commence. And so on and so forth until all 5L are gone and full market value is achieved. This is where I see things going, and why I'm investing in this space.

The 5L buyout may happen in 3 months, it may happen in 3 years .. or maybe this new "digital asset" paradigm will implode and it won't happen at all. It's a gamble for sure. But for now, what I see is that $8 is the ticket of admission on domains that may already be worth more than that.

 

[thetruman]

a google APP for android quite interesting.. https://play.google.com/store/apps/details?id=com.google.android.inputmethod.pinyin&hl=en

 

[Kachi]

5L has been the underachieving, overlooked little brother of 4L for a long time. Nobody ever expected much from him. But times they are a changin. Little brother is growing up and we may have to start looking at this namespace in a different light, the same way we adjusted our perception as digital domains went from 4N to 5N to 6N .. and beyond. We now see value where we once saw folly.

The main thing the 5L "namespace" has going for it is it is .com -- DOT COM! -- and the second best thing is that it is just one letter longer than 4L. One letter. That is not much in the grand scheme of things. Why should one letter be such a curse and a stigma when 2, 3, 4 extra digits are not? One extra letter does not transform a 4L.com into some new gTLD that no one has ever seen before.

Yes, it adds about 11,425,000 names. Granted. That's not nothing. But the domain industry is getting flooded with new domainers and investors and what seemed inconceivable a couple months ago has become commonplace. Buyout after buyout. More domains being registered than ever before. What if this new "digital asset" commoditization of domaining is just getting going? If so, 4L.com will become the new 3L.com and 5L.com will become the new 4L.com. Of course by the time that possibility starts to appear on the horizon all good 5L names will be gone, in Chinese investors long-term portfolios or on the aftermarket selling for many multiples of what they are available for today, ie, regfee. Look at these 3L prices from 2011-12, about what 4L chips get today...
Show attachment 19653
If this is just the beginning of a new domaining paradigm, then right now everything is undervalued -- 3L, 4L, and 5L. The big Chinese investors see this. Western domainers steer toward immediate profit. The Chinese seem to understand this is a longer term play.

Prices move up in a spiral. There is an ebb and flow. For example, it is no coincidence that the 4L.com floor (for any 4L, not chips) stalled out at around $300. The standard formula for establishing value is to divide by the number of domains in the lower namespace. $300 over 26 (the number of additional 5L) = $11.50 market value for any 5L. About $4 more than reg fee. That's profit, and that's why the Chinese and Western premiums are getting sucked up right now at the rate of 100,000 per day. They are already worth 5 to 10 times reg fee. Once they are not available for $8.50 any more they will all rise to current market value, which is tied to 4L.com prices, which are tied to 3L.com prices. If the floor for any 3L.com right now is $40k, than any 4L.com should be $1500. 5 times what they currently sell for. If any 4L is worth $1500, then by the same calculus any 5L is worth about $58. And the floor for 3L right now may look cheap in a year from now.

Right now, the availability of 5L.com for reg fee is keeping the floor artificially low on the 4L and 3L spaces. Once the chips are gone we should see an adjustment. 4L and 3L chips will go up and the regular (non-chip) 4L and 3L will get pulled up by their proportionate value (ie, they are worth a proportion of chips). Then the next round of 5L buying will commence. And so on and so forth until all 5L are gone and full market value is achieved. This is where I see things going, and why I'm investing in this space.

The 5L buyout may happen in 3 months, it may happen in 3 years .. or maybe this new "digital asset" paradigm will implode and it won't happen at all. It's a gamble for sure. But for now, what I see is that $8 is the ticket of admission on domains that may already be worth more than that.

5L.com will surely surprise most people by the end of this year or beginning of next year.

 

[TRY]

And drop it next year :P

edit

 

[Mr Dobalina]

How many are left to register?

 

[Rwang]

are the random 5l chip worth a punt or risky investment

 

[thetruman]

risky if you don t know what are doing... good potential for patterns or good chinese meanings

 

[DnDigger]

How many are left to register?

1178460 / 3200000 = 37% available without vowels and v

 

[joricarmo]

Any update on this? Do the predictments stand? Whats the presente availability and predicted buy out?

 

[Flipsbay]

Any update on this? Do the predictments stand? Whats the presente availability and predicted buy out?

market up for very good patters but not yet buyout complete.

 

[tonecas]

yep, palindromes and repeats have interest

 

[Tytus]

2017 I believe!

 

[Uttam]

While you were talking about the repeatable words 5L domains will gain pace more quick and even they have disappeared completely, I am lucky to have Xaang.com which is at auction on Godaddy! 5L is already in market my friends.

 

[Soofi]

There is market and people are buying. If you can get them at register fee or little more, go get them as soon as possible

 

[Michael R.]

Do you know what is the floor price of 5L.com CHIPS? Do we already have some price stats, depending on the pattern?

 

[DonDraper]

So far 5L.com chips are selling

- geo
- -w ending
- "AB" pattern
- "ABC" pattern only ABBCC, AABBC, AABCC, ABBBC

When and if 5L.com will raise in value properly maybe will get wide, and other ABC pattern will gain their floor price. I'm talking about:

1 - ABCAB
2 - ABBCA
3 - ABCCA
4 - ABACA
5 - ABCAC

For other patterns I guess will be difficult if not in a long time, I guess market (China) got only to familiarize with those patterns and then the war will begin

My 2 cents of course

 

[Michael R.]

So far 5L.com chips are selling

- geo
- -w ending
- "AB" pattern
- "ABC" pattern only ABBCC, AABBC, AABCC, ABBBC

When and if 5L.com will raise in value properly maybe will get wide, and other ABC pattern will gain their floor price. I'm talking about:

1 - ABCAB
2 - ABBCA
3 - ABCCA
4 - ABACA
5 - ABCAC

For other patterns I guess will be difficult if not in a long time, I guess market (China) got only to familiarize with those patterns and then the war will begin

My 2 cents of course

Thanks for this detailed explanation

 

[tonecas]

palindromes and repeats work in every segment

 

[Nem0]

Edit: ugh it's late and I think i read it wrong. It was from a post on domainshanes blog:

In 5L.com news, I had someone in the know tell me that there were only 45K 5L.coms that are CHiPs, Chinese preferred letters. And that 2 million of the 3 million total had sold. In other words, a CHiP sellout will be official any day now.

 

[thetruman]

there was a website hold by a member that kept track, can t remember the www