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domains Where are your thoughts on 4L.coms?

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One of the most discussed and traded categories in domaining is the 4L.com space. Providing access to a wider number of investors as opposed to 2L.com and 3L.com which many don't have the budget for. In 2018 there were 7,862 reported 4L.com sales on Namebio. 2019 saw a drop to 5,514 reported names. Now if you look at 2018, Andrew Rosener successfully sold Zoom.com for $2million. If we remove … [Read more...]
 
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The views expressed on this page by users and staff are their own, not those of NamePros.
I have around 360 LLLL.coms and keep adding regularly.

@equity78 , here is a suggestion: try to exclude GD auction wholesale ones to compare across the years. My personal observation is that a) there are less and less names coming from expired, so reduction in sales yoy can be explained just by that possibly; b) the average sale price won't be diluted by wholesale purchase prices. Average end user sale price for the category is definitely way higher than $1k...
 
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It’s possible that premium 4Ls are appreciating while lower value CHiPs are depreciating.

I think this comment from your site sums up what is going on.

Right now I'm seeing more 4 letter .com (or other) domains on TV commercials, trucks, and all different types of advertisements. But they aren't names like QZWF.com, they are names like vezt.co and similar names that are either pronounceable or prominent acronyms.

I wish I wrote them down, but I saw one for home repairs, another for something medical related, and 1-2 others that had to do with some type of service offering.

I think these, as well as domains of prominent acronyms will continue to be successful.

Brandable 4 character names - Way up on demand & price
Common Western Acronym 4 character names - Steady or Somewhat Up
CHiPs/unusable in commerce names - Down

A good rule to keep in mind, is if a business will never use it. Don't buy it.

As a similar note, there is no way NNNNN domains will ever be used for significant commerce either, so the bottom will likely fall out from these eventually as well.

For this, maybe NameBio is not a good source for a conclusion, because it is combining end user sales and investor sales to some degree.

If you look at the 4 character chart from Escrow's 2019 report, it shows the median price has dramatically spiked in recent quarters. Seems like the downward spikes are likely due to increased reseller transactions in certain quarters outweighing the end-user sales.

upload_2020-4-30_9-54-57.png

 
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Extremely valuable if a dictionary word, pretty valuable if pronounceable, unpronounceable not that valuable. It's hard to get them noticed unless it's a direct search since they are probably not a keyword. Not that many companies/names can be abbreviated to 4chars.
 
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Not Much Valued except the pronounceable.
 
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I owned many 4Ls in the past but I always flip them, longest holding time no more than 3 months.

The problem with flipping is the reward is low, holding will return much higher ROI. Main reason that I dont hold on 4Ls is that the liquid value is not very high usually below $100 for non pronounceable and non premiums, so any renewal fees can mean losing money when liquidating, so only high quality pronounceable 4Ls with values above $250 are worth holding.
 
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Biggest play is New Zealand and they like their .co.nz
 
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I agree with @Samer

It boils down to supply and demand. All ~450,000 of them are taken, and will likely never be available for hand registration ever again. As the world's population and WWW grows further, demand will necessarily increase to at least some degree. At some point, at least if the WWW is not usurped by some other platform, even non-pronounceable 4Ls will become more valuable simply due to the exclusivity of it. Who nowadays would not want to own a 3L domain, even if it is a shitty one like XWV.com that can be purchased at a comparatively cheaper price, simply for the prestige? People buy lower-end luxury items all the time.
 
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Also we as dollar strong nations with lots of wealth to buy these as collections and hold onto them , consider if your from Turkey or Argentina Domain collector these are actually becoming safe guards to hold your wealth as many currency go to Zero. So if you sell one and make just 100$ thats enough to put food on your family table for awhile , if you happen to born or from some of these countries.
 
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Also we as dollar strong nations with lots of wealth to buy these as collections and hold onto them , consider if your from Turkey or Argentina Domain collector these are actually becoming safe guards to hold your wealth as many currency go to Zero. So if you sell one and make just 100$ thats enough to put food on your family table for awhile , if you happen to born or from some of these countries.

When did Turkish currency go to zero?
 
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When did Turkish currency go to zero?

Not literally but Meaning that many currencies are in a deep devaluation against the dollar :
For example 2008 in Turkey one would get about 83 to 87 Turkish Lira's for one dollar now in 2020 you only get about 17 !! A huge decline many countries are like this and Argentina its even worse :
So we sell domains in the US dollar here at namepros ,
Im just trying to give an out look from other countries who see these
domains differently if they can flip them for just $50 more in USA dollars that is a
big chunk of money for them :
For most of the USA domainers that hold hundreds of these 4L.coms and are willing to pay 1000s for renewal fees , thats just not possible for the majority of domainers that live there .
Just making $50 or $100 bucks is nothing to be excited about ///// but in many countries $50 or $100 usd domain flip goes a looong ways that will put food on the table for a family for a whole month and it very rewarding for the flipper and exciting ! . Its just a different mindset with the dollar .
 
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Not literally but Meaning that many currencies are in a deep devaluation against the dollar :
For example 2008 in Turkey one would get about 83 to 87 Turkish Lira's for one dollar now in 2020 you only get about 17 !! A huge decline many countries are like this and Argentina its even worse :
So we sell domains in the US dollar here at namepros ,
Im just trying to give an out look from other countries who see these
domains differently if they can flip them for just $50 more in USA dollars that is a
big chunk of money for them ,
For most of the USA domainers that hold hundreds of these and are willing to pay 1000s for renewal fees , thats just not possible for the majority of domainers that live there .
Just making $50 or $100 bucks is nothing to be excited about ///// but in many countries $50 or $100 usd domain flip goes a looong ways that will put food on the table for a family for a whole month and it very rewarding for the flipper and exciting ! . Its just a different mindset with the dollar .

I don't know where you are getting your data from or if you understand numbers correctly. Right now, 7.05 TL are $1, 5 years ago it was 2.65TL for $1. Not very good, but hardly going to zero. And, they could easily keep their money in USD, if need be, so no need to keep in not liquid assets like domains.

And $100 won't go long way in Turkey. You are apparently confusing the country. It is quite rich, big tourism, big exports, huge agriculture, energy hub, consumer products and tech, etc. It is 19th richest country in the world by GDP and 13th GDP PPP. GDP per capita is $9K and $28K PPP. Nothing to sneeze at.

It is also probably the fastest growing economy in Europe, with average annual growth of about 7% for the last 9 years.
 
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Just observing a graph that says in 2008 $1 was about 1.20 lira back in 2008
now 2020 1$ is about 7.05 lira so more then a 5X devaluation against the dollar .
So everything is pretty expensive in dollar terms for them then is used to be .
I would be personally very surprised to see a Turkish domainer holding hundreds of 4L.com
I could be wrong , be interesting to look into /
 
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Just observing a graph that says in 2008 $1 was about 1.20 lira back in 2008
now 2020 1$ is about 7.05 lira so more then a 5X devaluation against the dollar .
So everything is pretty expensive in dollar terms for them then is used to be .
I would be personally very surprised to see a Turkish domainer holding hundreds of 4L.com
I could be wrong , be interesting to look into /

1. Devaluation is not necessarily bad. No, things are not expensive in dollar terms. They produce pretty much everything and they can buy everything in liras or dollars way cheaper than in the rest of Europe or anywhere in the West.

2. There is no point in holding money in 4L. They could just by USD and hold. Holding bad 4Ls is not normally a good investment anyway. That is most of those currently trading around $100 or below.

I am holding near 400 LLLLs and I live in the USA. The rationale for holding them is not guided by geography. A name is either investment grade or not. Regardless of where I live.
 
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