Quad Letter Domains

Of late there seems to be an ever growing divide between reasonable 2/3 premium letter LLLL.com’s and those which have 2 or more bad letters. I am consistently seeing more and more posts advertising lower quality names and getting very little interest. This is also what I found when I tired to sell some of my lesser quality names in the middle of December 2007.

It seems to me that many people are still expecting four letter domains to increase in value across the board. Sadly I don’t think this is going to be the case. Prices are rising steadily for anything with three or four premium letters but prices for the rest, including the abundance of anti-premiums, don’t seem to be moving anywhere with much consistency. The odd few see a greater return than others but you can pick them up for less than $20 each if you look in the right places.

It is very hard to determine whether or not this will have a detrimental effect on the market. What happens in a few months time when triple and quad premium names are still holding ground but the anti-premiums don’t increase in value? This may mean that to many domainers they are not worth hanging onto because the renewal fees out-way any investment potential. We may then see more people dropping them and subsequently this will create a greater supply over demand. It is very hard to tell just what is going to happen purely because the LLLL.com market as it is today is still very new and still finding its feet. I think we should all be wary of the fact that the anti-premiums, although a nice basis for a large portfolio should not be relied upon. For this reason I have been picking up more and more triple premiums of late. I really do think that this is the area where we will see the greatest ROI.

written by Richard