3Character.com - Buying Opportunities for 3 Character Domains

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Copyright 2008
3-Character.com

The New Online Rules of Real Estate...

Character, Character, Character

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A Commentary on LLL.com Domains - Continued

"The LLL.com market has several particular strengths for which this recent revision might look more like a buying opportunity than a market correction."

By some estimates, well over half (up to estimates of even 70% or more) of all LLL.com domains reside in end-user hands. LLL.com domains were widely among the most registered domains in the first domain rush of the early to mid 1990's.

Many companies were quick to pick up their LLL.com acronym during this initial domaining rush, and many more have purchased their related LLL.com domain in the years that have followed. This natural progression of LLL.com registration and ownership by end-user entities has severely limited the LLL.com "available for resale" supply (owned by non-end-users) and now, almost daily, more and more LLL.com domains are being sold to end-users.

Furthermore, many "virtual end-users" are now buying and holding LLL.com domains. These virtual end-users are gladly buying LLL.com domains at attractive prices, developing them and then holding onto their domains with little desire to sell, unless to an end-user at a substantial price. These virtual end-users are typically very well funded, and for many, their collections of LLL.com domains are growing quickly.

Additionally, LLL.com domains are among the most universal of all domains. LLL domains are not restricted to any specific language or region and particular use. With developing internet markets around the globe, especially in much of Asia, many LLL domains are gaining in traffic, desirability and demand. Oddly enough, at least to some, this might have a particular benefit to traditionally lesser-quality LLL.com domains. Lesser used letters within the English language, such as Z, X or Q are commonly prime letters within much of Asia and other newer developing regions of the globe.

All this said, the current (and this author believes to be temporary) increase in the supply of LLL.com domains coming to market has resulted in lowering the current valuation of LLL.com domains (greater supply tends to lower valuation amidst consistent demand) and created a great buying opportunity within the LLL.com marketplace. Further fueling this determination is the current buying strength observed to be occurring by several larger and well funded LLL.com portfolio owners. LLL.com domains appear to some to be "on sale" at current market prices and many LLL.com domains are now finding their way to stronger and better funded hands.

Finally, LLL.com domains have been domain-flippers dreams come true in the last several years. The rationale over the years was "Buy an LLL.com for $X today and sell it for $X + $Y dollars in a matter of days or months". With this recent shake up in LLL.com domain valuations, many flippers are finally getting caught in this shift and some are selling at a loss. This has created somewhat of a domino effect in the at market supply of LLL.com's and in current valuations, but the fundamentals of LLL.com domaining still appear strong in both the relative short term (6 months to a year) and perhaps more certainly in the long term (1 year plus).

The future is never known for sure, and this commentary is not intended as investment advice (Full disclaimer: do your own due diligence and consider this commentary as one among many and for what it is, a commentary alone), but in the mind of this author, this might just be a tremendous, and perhaps last for a very long while to come, great buying opportunity for LLL.com domains. Time will tell, but the number of LLL.com domains in non-end-user and non-virtual-end-user hands is decreasing and the total supply (17,576) is absolute. Global growth, end-user strength and economic recovery are positive factors which will likely only benefit the LLL.com market and LLL.com owners down the road.

Important Disclaimer: The views and opinions expressed in this article represent those of the author only and should not be used in any way as the basis for any investing or lack thereof. Make your own call and investment choices based on your own best knowledge and let this info be a helpful source for interesting debate. Domain investing is risky and involves risk, but then again, so does just about everything in life. 3 times the characters, 3 times the fun! - Published 8/2/2008

Andrew Miller is the owner of Zestydomains.com. Please feel free to email the author with any comments.