If you’ve bought any quantity of short dot coms, especially LLL.coms then you most likely have dealt with Oliver Hoger. He is one the largest buyers and sellers of these types of domain in the world. He and I have discussed value of short names and their future and we both agree that we feel there is still upside to short.coms. Oliver was nice enough to explain why he thinks LLLL.coms are one of the undervalued classes of short domains. (and in thanks I listed some of the LLLL.coms he has for sale at the )
by Oliver Hoger
Four-letter .coms. Why are they so valuable? Why is the market heating up and showing no signs of slowing down?
If a company spends tens of thousands of dollars in advertising to get their customers to their website, the last thing they want is to lose business because the customers made a mistake writing in the website’s domain.
To put it simply, LLLL.coms offer the very best alternative to a company that would otherwise have a domain name begging for typos. These domains offer a shorter, more memorable alternative.
If you have been following the market closely or from far, you know that the niche market for short .com domains has gone up drastically in the last year. To be more specific, the market for LLL.coms and LLLL.coms has been rising and isn’t showing any signs of a correction.
Now let’s try to use a simple formula to evaluate the true value of four-letter .com domains using three-letter .com sales as a reference.
Looking at all sales for LLL.coms in 2015, we see an average sale price over $36,000/ domain.
If we look at the number of possible LLL.com combinations, we have a total of 17,575 (26*26*26).
Using this same metric, we can see that there are a total of 456,976 potential LLLL.com combinations.
By simply dividing the number of total four-letter .com combinations by the number of total three-letter .com combinations, we can see that the number is 26 times more.
With this theory, if we take the average sale price of LLL.coms and divide it by 26, we can valuate that the average sale price for an LLLL.com should be over $1,350.00 for Any letter combo and the QUADS which are E R T I O P A S D F G H L C B N M easy over $3000+ Also the Chinese market is very hot letters: Q W R T Y P S D F G H J K L Z X C B N M From the low end selling from $1000-3500 each right now .
This would lead us to believe that despite the sudden growth of the four-letter .com market, this niche market is seriously undervalued and there is still massive room for continued growth! Easily go over $2500+
The Return selling to an end user also also allot more 10x-30x and much easier to sell!