.tv The value of a non-premium LLL.tv: A domianer's domain

[kubativity]

Hello,

I have recently been considering the value of a domain I own that happens to be an LLL.tv @ standard renewal price. I wondered what such a name might be worth? Well, considering that all unregistered LLL.tv names have a min cost of 500/year from enom, one might assume that the value of one @ standard renewal at least 500 dollars. This seems like sound logic and I am happy to accept that the value of any non-premium LLL.tv name is equal to or above 500. So the question is how much more?

We could approach this question by analyzing three separate aspects of what gives a domain name value: natural type-in traffic, end user appeal and its aftermarket(domainer) appeal.

Unfortunately, I have not parked this name and have no idea what kind of traffic it may be receiving. So for this point I will simply ask the NP community if anybody has experienced any natural traffic to their LLL.tv domains?

To the second point, I have to ask: If I were an end user faced with the prospect of choosing between and annual fee of 500 dollars and a one time fee of x, what would value of x have to be in order for me to choose it above another premium .TV? I assume that number to be somewhere in the realm of 3 to 10 years of renewal fee, depending on the expected duration of the business. Based on these assumptions, I can see that the maximum value of a given non-premium LLL.tv should be 10 x 500 = 5,000 (with a variance based on quality of characters and other factors). Personally I think that a more accurate value would be closer to 5 years giving an approximated value of 5 x 500 = 2,500. Not bad. So lets think for a moment as an end user:

I want a nice LLL.tv name to launch my site. Should I pay 2500 upfront and then have a low renewal rate of 25/anum? Or would I be better off paying 500 per year for the duration of my business? In many cases an argument can be made to choose the latter. For one thing, if the website fails within 1 or 2 years, I have only lost 1000 dollars rather than the 2500 price on the nonpremium. Another point is there is simply more selection of premium names, so i am more likely to find something I like in the premium market rather than the non-premium aftermarket. Another valid point is that doing business with some unknown domainer may entail a risk some businesses wont be interested in making.

With these points in mind, I would have to diminish the value of my domain to some degree. I will arbitrarily use the figure of 50%, to estimate the value of my name @ 2500 x 50% = 1250. I think that may be pretty close.

OK, what about the domainers market? I am sitting on a rare item here. It is a gem of a domain for any domainer to own. after all, who of us wants to pay high renewal fees just to keep an LLL.tv in our portfolio? I am sitting on a Domainers Domain! its essentially a collectors item, so to speak. It is in some ways like a rare comic book, or baseball card. So what kind of value does that mean? well, I've had several offers for this name here on this forum and elsewhere. Can anybody guess how much I have been offered for this rarity? yep you guessed it ..... pretty much next to nothing (approx 400 dollars).

Well.. I have decided that due to this evidence, this domain probably has a REAL value of something close to 500 to 800 dollars. So what? its not worth that much... but neither is my silver surfer issue 50, and I still love that comic! I own a collectors item in the domain world and, even though im essentially leaving domaining as an investment method, I am proud to hold this great name.

Regards,

Kubativity

 

[MicroGuy]

I guess you're talking about MFX.TV?

If you really want to know it's current value, you could let the market decide. I think you have it close at around $500 to $800. Glad you decided to keep it. Good luck.

 

[*AllThings.tv*]

Great writeup. Why are you leaving domaining? Why not get involved in development? Surely, you could develop the name to be worth significantly more than the value you estimate its worth today.

 

[Len]

Kuba, you should take a look at the number of LLL.tv's there are still un-reg'd at $500/yr and ask yourself why. The answer is simple, unless it is a word or easily recognizable acronym with high search volume and obvious enduser potential then nobody is willing to shell out the money.
It's good that you managed to snag one of the few that are around at normal reg fee but unless it falls into the above category then you are looking at selling between $400 - $800. Which, if you look at it from a business point of view, is still an excellent ROI.

 

[equity78]

Len you are absolutely correct I own 2 LLL.tv no premium fee, that does mean they are worth $500 because other LLL.tv are priced at $500. It matters if someone needs the domain. Again IMO

 

[Marck]

I dunno about their value, but I'd like to buy one if it's low $xxx.

 

[kubativity]

Kuba, you should take a look at the number of LLL.tv's there are still un-reg'd at $500/yr and ask yourself why. The answer is simple, unless it is a word or easily recognizable acronym with high search volume and obvious enduser potential then nobody is willing to shell out the money.
It's good that you managed to snag one of the few that are around at normal reg fee but unless it falls into the above category then you are looking at selling between $400 - $800. Which, if you look at it from a business point of view, is still an excellent ROI.

I have to disagree with your point here. I wouldnt say that "nobody is willing to shell out the money." Domainers may not be willing to shell out the money, but businesses who want to use the names generally have little problem with the 500/annum expense. As you are surely well aware, 500 dollars a year is generally not a significant business expense. Entrepreneurs who understand the value a good domain could have to their brand have shelled out the premium fee on a number of occasions. The premium pricing has essentially closed the gap between domainer and end user/buyer. I personally believe that enom has hit the value quite accurately with many of their names, thus my assertion that LLL.tv's are all worth over 500.

This is just my perspective of the market.

Nonetheless, I know that as a domain owner I would never invest in a domain with high premium renewal fees simply because it would burn a hole in my pocket. Yet, the lure of owning an LLL has always appealed to me. So I am proud to own this domain rarity, but have come to terms with the fact that it is the childlike comic-book-collecting aspect of my personality that makes me love this name, not the real market value or potential. This name is really for the kid in me, and should someday soon find good use with some wacky personal project.

btw, yes it is MFX that i speak of. and as a side note i have recently come to realize that this letter combo is actually a lot better than it may appear at first glance. I was entertaining the idea of launching a media company and found this name could be used for a number of great acronyms:

Male/Female/eXtras
Male/Female/XXX
Motion Film Extra
Motion Film Exlusive
Model Fashion x(lusive)
Movies Fashion extra
Media File X
Media FX (as in effects)
Movie FX
music File Exchnage..
typo of XFM
motion film extras

There are more too... very nice.



Thanks for the insights everybody

 

[Marck]

it is the childlike comic-book-collecting aspect of my personality that makes me love this name

Amen to that...

 

[kubativity]

... So for this point I will simply ask the NP community if anybody has experienced any natural traffic to their LLL.tv domains?

Does anybody have any general information on LLL.tv type-in traffic?

 

[mckennaronnie]

Kuba: Interesting subject.
I often wonder how to compare a Premium Domain Valuation to a non premium but i have never came up with an exact system.

If you see a standard renewal fee that you reckon is worth $1,000.
What would it be worth is the renewal fee was $250??

Do you think, i'll take 2 years renewal fee of the price to value it or do you think 5 years??

It is very difficult to come up with a system for comparing Premium v non premium valuations.

Generally if i'm going for a domain that i think is worth $1,000 then i will subtract 2 to 3 years renewal from the price IF its a Premium.
So if its $250 a yr then i'd subtract $500 to $750 off my valuation.

What that has resulted in is me not registering anything above $500 a yr, i've passed on many Geo's that were felt to be worth big money as i didnt like the idea of paying high premiums that would eat into my profit all the time.


Kuba did you not announce last week that you were done with .tv and selling everything???
IS the only reason your back due to you realizing domainers love non premium 3 letter .tv's like the one you own??

I'm not having a go here though, just interested.

 

[kubativity]

Kuba did you not announce last week that you were done with .tv and selling everything???

In my thread entitled "giving up on .TV", I expressed my frustrations with the .TV after market and simply stated that I am not going to be investing money or significant time in .TV (or domaining in general). In regards to the names I own, I made little indication about my intentions.