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"What the hell is a premium letter?"
- Thread starter biggie
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The views expressed on this page by users and staff are their own, not those of NamePros.
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I'm assuming you're referring to good letters in acronym domains. Basically when it comes to acronyms, letters fall in three categories, good, mediocre, and no so good. Letters like Q, Z, X are not so good since they have fewer English words using them. "premium" ones would be those that are very popular like S, I, C, etc. I would consider a three letter acronym (TLA) ending in I as premium since it fits any company with "Inc." as the ending of their name. Those starting with A can be for American, Asian, African, at many other uses making it a better letter than others. A letter's value isn't just the letter, but what position it's in.
A premium letter is a letter that is nicer than the ugly letters like j,k,x,y,z, etc. When it comes to short names having the maximum premium letters can help you to create an acronym.
byob.com (bring your own beer)
xzzy.com (??)
In reality I don't believe in this whole premium letter stuff but that's how I'd explain it.
Skinny
byob.com (bring your own beer)
xzzy.com (??)
In reality I don't believe in this whole premium letter stuff but that's how I'd explain it.
Skinny
Love your "what the hell is" threads.
I don't really know when the term "premium letter" poked it's ugly face but my understanding is that it started with 3 letter domain names. Domain investors and resellers identified the letters "A,B,C,D,E,F,G,H,I,L,M,N,O,P,R,S,T" as having higher probabilities of being desirable for acronyms and soon it became clear that a 3 letter domain with all 3 letters being premium would attract a significantly higher investment from this domainer market. Based on sales data.
With 3 letter domains, the value of the domain is highly correlated with the probability of the domain being used for an acronym.
With 4 and 5 letter domains, aspects like pronounceability and brandability significantly affect the value of a domain and so the growing popularity of 4 and 5 letter domains has added a lot of controversy of what a premium letter is. Also, some letter sequences include non-premium letters but are very popular in acronyms.
My research into the letter frequencies within domain names has given me a lot of confidence into the categorisation of premium and non-premium letters. I can't see any reason to believe that there is a non-premium letter that has a higher probability of being used within acronyms than any of the premium letters.
I do however consider that the category of premium letters is too large and that buying a domain because it only has premium letters is somewhat oversimplified. (e.g. A domain with the letters V and S is more likely to be used in an acronym than one with the letters F and G but the domain with F and G will attract a higher reseller value because both letters are premium.)
I don't really know when the term "premium letter" poked it's ugly face but my understanding is that it started with 3 letter domain names. Domain investors and resellers identified the letters "A,B,C,D,E,F,G,H,I,L,M,N,O,P,R,S,T" as having higher probabilities of being desirable for acronyms and soon it became clear that a 3 letter domain with all 3 letters being premium would attract a significantly higher investment from this domainer market. Based on sales data.
With 3 letter domains, the value of the domain is highly correlated with the probability of the domain being used for an acronym.
With 4 and 5 letter domains, aspects like pronounceability and brandability significantly affect the value of a domain and so the growing popularity of 4 and 5 letter domains has added a lot of controversy of what a premium letter is. Also, some letter sequences include non-premium letters but are very popular in acronyms.
My research into the letter frequencies within domain names has given me a lot of confidence into the categorisation of premium and non-premium letters. I can't see any reason to believe that there is a non-premium letter that has a higher probability of being used within acronyms than any of the premium letters.
I do however consider that the category of premium letters is too large and that buying a domain because it only has premium letters is somewhat oversimplified. (e.g. A domain with the letters V and S is more likely to be used in an acronym than one with the letters F and G but the domain with F and G will attract a higher reseller value because both letters are premium.)
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Premium letters are widely associated with the "reseller" market. They do exist there in the concepts of people.
When it comes to end users (and when talking about premium letters we talk about acronyms), the very domain they need is the most premium.
Given a random domain JYSK . This would be classified as a non premium combo. But in my town I see everywhere big advertisments of Jysk. You may ask what the hell is Jysk? Check out Jysk.com and you will see a homepage of a really big multinational company. hat would they have paid for their domain if it was in the reseller market?
Let's stay a bit to end users. One of the biggest mistakes I see at domainers when trying to appraise their domain is that they undervalue it in terms of end users.
For a random LLLL.com they say $30 in the reseller market and max $300 to an end user. What the hell? To an end user maximum limit? And end user buys a domain because he needs that domain, and would pay as much as he can afford for it.
Let's say Jysk.com would be valued at "max" $300 for an end user, and Banu.com wouldbe valued at $5k at end users. WRONG!. When end users need a domain they need it, no discussion. They do not have variations like "Our company's initials are not so great so we offer less for this domain". No, they need it. Just as an example look at the MYYP.com sale. It ended up at $11k if I recall correctly. Why? Because somebody needed it badly.
Now back to the reseller market. I understand domainers need to feel their investments at a minimum value. And I understand that there is a difference between better letters and worst letters.
A domain like Abce.com would likely find more end users than a random one, just because those letters occur much more than other initials.
But when I do a purchase of a domain, I rather look at AcronymFinder and in google to see if the initials meand something, and I would rather pay more for a bad lettered domain with many actual acronyms, than for a "premium" one that stands for nothing.
Still, the possibility to reach an end user sale with a "premium" letter combo is higher. That is true. But the price that can be reached with that sale does not depend on letter combo.
When it comes to end users (and when talking about premium letters we talk about acronyms), the very domain they need is the most premium.
Given a random domain JYSK . This would be classified as a non premium combo. But in my town I see everywhere big advertisments of Jysk. You may ask what the hell is Jysk? Check out Jysk.com and you will see a homepage of a really big multinational company. hat would they have paid for their domain if it was in the reseller market?
Let's stay a bit to end users. One of the biggest mistakes I see at domainers when trying to appraise their domain is that they undervalue it in terms of end users.
For a random LLLL.com they say $30 in the reseller market and max $300 to an end user. What the hell? To an end user maximum limit? And end user buys a domain because he needs that domain, and would pay as much as he can afford for it.
Let's say Jysk.com would be valued at "max" $300 for an end user, and Banu.com wouldbe valued at $5k at end users. WRONG!. When end users need a domain they need it, no discussion. They do not have variations like "Our company's initials are not so great so we offer less for this domain". No, they need it. Just as an example look at the MYYP.com sale. It ended up at $11k if I recall correctly. Why? Because somebody needed it badly.
Now back to the reseller market. I understand domainers need to feel their investments at a minimum value. And I understand that there is a difference between better letters and worst letters.
A domain like Abce.com would likely find more end users than a random one, just because those letters occur much more than other initials.
But when I do a purchase of a domain, I rather look at AcronymFinder and in google to see if the initials meand something, and I would rather pay more for a bad lettered domain with many actual acronyms, than for a "premium" one that stands for nothing.
Still, the possibility to reach an end user sale with a "premium" letter combo is higher. That is true. But the price that can be reached with that sale does not depend on letter combo.
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Well, I've held back from commenting on Biggie's "reseller" thread and the "You guys better wake up" thread, but I'll weigh in here.
I think I see Biggie's agenda here, or at least I'll take a stab at it:
A domain is a valuable asset and is unique. It has a price, which is the price between a willing seller and willing buyer. Biggie believes that there should not be guides or references based on comparable data, as each is unique and thus in no way comparable. There should also not be a reseller marketplace, as each sale is a sale. Calling it reseller is unacceptable. Further, it appears his larger issue is with guides like, for example, the guide at 3character.com. My feeling is that he believes guides place limits on values by noting various types of domains, inherent minimum sales prices (based on comparable sales) and perhaps extrapolated value possibly based on letter/character composition. I do know that Biggie is not a fan of at least the one guide mentioned above, of which I am the author.
I'll offer a few thoughts:
- First off: Biggie is well entitled to this thinking. He is a long-time domainer and one worthy of being well regarded and respected in our field. I've done business with him years ago and my business experience with him was first class.
- Guides are valuable to those who find them valuable. They are most helpful when they are based on specific data of comparable items. They can be reduced to opinion also, if they are not based on specific valuable criteria, but guides based on comparible data and well crafted can be helpful.
- Reseller, or wholesale markets are a reality. If any item is purchased by a user with the intent to resell, the person buying and the person selling are thus to some degree resellers. A majority of sales on our domain forums, for example, fit this bill, as they are domains usually sold to buyers with the intent to resell. Conversely, end-users are the final users for a domain. They have not purchased/acquired their domain with the intent to resell. It is true that both reseller and end-user sales are agreed upon sales between willing buyers and sellers, so in that way they are similar, but the intent of the purchase can alter the price significantly.
This concept is not new to domains. Real estate (notice that Biggie and I will disagree on this point) works in a similar manner. There are people who clearly buy real estate to resell. They take part in distress sales, or other sales types where they perceive an opportunity to make money, with the intent to resell their property. But no two pieces of property are the same. There is only so much land and every location is different, slightly or vastly, than other locations. This said, valuing property can be done in a relatively accurately manner. This, for example, is done every day by Real Estate appraisers. They assign value to property based on related data, and the number they create is a relative guide to the value of the property. To relate this to domains, replace the words location/property with domain and see the similarity with appraisals. Guides point to a realistic market value of related property and related domains.
Analysis:
I think Biggie's main issue is that he doesn't like that values are placed on anything. He believes that guides like the one at 3character.com are limiting value of types of domains. He believes that guides like the one at 3character.com are defining such things as letter quality, but Biggie believes that letter quality is a farce and non-existent.
This said, 3c's guide is a reactionary guide. It is based on sales data and the perceptive trends. The market data defines the values (which are minimum values). The market data reflects the value of letters and characters in 3 character domains based on sales data composed of specific letters. Some letters in LLL domains clearly sell better than others, based largely on likely end-user appeal. Personal opinion about this is only so valuable...as the data doesn't care about opinions, but rather reflects actual sales values.
Are there premium letters? Yes. If you could buy SCT.com for the same price as XQZ.com, which would you buy? Now, if you are an end user, you buy the one you need. BUT, if you are not an end-user, you probably buy SCT.com. Why? Statistically it has the better chance of finding an end-user buyer, as those letters have proven to have more appeal in the business world, where the money and demand drives reseller value. Thus, the top end letters usually draw a higher reseller price. That's just reality.
Finally, I don't quite understand Biggie's motives for this rousing. If he is right, and reseller types and letter quality have no place, then let it be so for him. He can read the market however he wishes. Is he upset that people read guides based on data and then feel more educated in their work? He owns unique domains and can charge whatever he wants. He can sell when he gets an offer he can't refuse. Does he perceive that guides somehow keep buyers from buying at his preferred prices? The owner dictates the price. Buyers only buy if they agree with the seller over price. Guides only matter if you feel they matter. The seller is the one in control of their domain.
Biggie has more control than he realizes over his domains. If an individual finds that a guide is unhelpful, it should be disregarded. If it is helpful to another person, it is thus an educational resource. Biggie can handle his domains however he wishes, dispite any appraisal, guide, or other's opinions. What then is the big deal about this (my thoughts here) agenda driven attack on 3character.com or related sites/concepts?
Reference:
http://www.namepros.com/domain-name-discussion/406982-you-guys-better-wake-up.html
http://www.namepros.com/domain-name-discussion/407186-are-these-premium-letters.html
http://www.DNF/f77/current-observed...dless-letter-combo-nov-1th-thread-258347.html
http://www.DNF/f77/current-observed...dless-letter-combo-sep-1-a-thread-247762.html
Biggie, I think you're a sharp domainer. Why the big deal and agenda here?
Thanks,
zesty
I think I see Biggie's agenda here, or at least I'll take a stab at it:
A domain is a valuable asset and is unique. It has a price, which is the price between a willing seller and willing buyer. Biggie believes that there should not be guides or references based on comparable data, as each is unique and thus in no way comparable. There should also not be a reseller marketplace, as each sale is a sale. Calling it reseller is unacceptable. Further, it appears his larger issue is with guides like, for example, the guide at 3character.com. My feeling is that he believes guides place limits on values by noting various types of domains, inherent minimum sales prices (based on comparable sales) and perhaps extrapolated value possibly based on letter/character composition. I do know that Biggie is not a fan of at least the one guide mentioned above, of which I am the author.
I'll offer a few thoughts:
- First off: Biggie is well entitled to this thinking. He is a long-time domainer and one worthy of being well regarded and respected in our field. I've done business with him years ago and my business experience with him was first class.
- Guides are valuable to those who find them valuable. They are most helpful when they are based on specific data of comparable items. They can be reduced to opinion also, if they are not based on specific valuable criteria, but guides based on comparible data and well crafted can be helpful.
- Reseller, or wholesale markets are a reality. If any item is purchased by a user with the intent to resell, the person buying and the person selling are thus to some degree resellers. A majority of sales on our domain forums, for example, fit this bill, as they are domains usually sold to buyers with the intent to resell. Conversely, end-users are the final users for a domain. They have not purchased/acquired their domain with the intent to resell. It is true that both reseller and end-user sales are agreed upon sales between willing buyers and sellers, so in that way they are similar, but the intent of the purchase can alter the price significantly.
This concept is not new to domains. Real estate (notice that Biggie and I will disagree on this point) works in a similar manner. There are people who clearly buy real estate to resell. They take part in distress sales, or other sales types where they perceive an opportunity to make money, with the intent to resell their property. But no two pieces of property are the same. There is only so much land and every location is different, slightly or vastly, than other locations. This said, valuing property can be done in a relatively accurately manner. This, for example, is done every day by Real Estate appraisers. They assign value to property based on related data, and the number they create is a relative guide to the value of the property. To relate this to domains, replace the words location/property with domain and see the similarity with appraisals. Guides point to a realistic market value of related property and related domains.
Analysis:
I think Biggie's main issue is that he doesn't like that values are placed on anything. He believes that guides like the one at 3character.com are limiting value of types of domains. He believes that guides like the one at 3character.com are defining such things as letter quality, but Biggie believes that letter quality is a farce and non-existent.
This said, 3c's guide is a reactionary guide. It is based on sales data and the perceptive trends. The market data defines the values (which are minimum values). The market data reflects the value of letters and characters in 3 character domains based on sales data composed of specific letters. Some letters in LLL domains clearly sell better than others, based largely on likely end-user appeal. Personal opinion about this is only so valuable...as the data doesn't care about opinions, but rather reflects actual sales values.
Are there premium letters? Yes. If you could buy SCT.com for the same price as XQZ.com, which would you buy? Now, if you are an end user, you buy the one you need. BUT, if you are not an end-user, you probably buy SCT.com. Why? Statistically it has the better chance of finding an end-user buyer, as those letters have proven to have more appeal in the business world, where the money and demand drives reseller value. Thus, the top end letters usually draw a higher reseller price. That's just reality.
Finally, I don't quite understand Biggie's motives for this rousing. If he is right, and reseller types and letter quality have no place, then let it be so for him. He can read the market however he wishes. Is he upset that people read guides based on data and then feel more educated in their work? He owns unique domains and can charge whatever he wants. He can sell when he gets an offer he can't refuse. Does he perceive that guides somehow keep buyers from buying at his preferred prices? The owner dictates the price. Buyers only buy if they agree with the seller over price. Guides only matter if you feel they matter. The seller is the one in control of their domain.
Biggie has more control than he realizes over his domains. If an individual finds that a guide is unhelpful, it should be disregarded. If it is helpful to another person, it is thus an educational resource. Biggie can handle his domains however he wishes, dispite any appraisal, guide, or other's opinions. What then is the big deal about this (my thoughts here) agenda driven attack on 3character.com or related sites/concepts?
Reference:
http://www.namepros.com/domain-name-discussion/406982-you-guys-better-wake-up.html
http://www.namepros.com/domain-name-discussion/407186-are-these-premium-letters.html
http://www.DNF/f77/current-observed...dless-letter-combo-nov-1th-thread-258347.html
http://www.DNF/f77/current-observed...dless-letter-combo-sep-1-a-thread-247762.html
Biggie, I think you're a sharp domainer. Why the big deal and agenda here?
Thanks,
zesty
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Premium Letters - ABCDEFGHILMNOPRST
Bad Letters - JKUVW
Very Bad Letters - QXYZ
Everybody agree it?
Bad Letters - JKUVW
Very Bad Letters - QXYZ
Everybody agree it?
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Devil_Dog said:
What your premium letter?
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