Jason Mcardle of QLQ.com wrote a blog post on where QLQ sees the domain market going.
Jason started off looking at how the Chinese economy is affecting the domain market as outflows continue from the stock market.
From the article:
We are seeing much more activity in the more volatile, less expensive end of the investment market. For example, 4L.com, 4L.net CHIPs, 6N.coms, 3L.orgs, etc have shown a nice jump in value. People are looking for cheap names that have a good chance to show a high percentage return. In terms of the domain investor market, these are the penny stocks. We believe that the upward trend in value of these types of domain names will continue based on the fact that more investors (both Eastern and Western) are entering the marketplace and we haven’t even seen the massive influx of investors from places like India and Brazil that are sure to come.
Jason opined that there is less confidence in seeing big percentage gains in the more expensive names like LL.com, but they are much less volatile.
He put together the following chart:
Read the full article on QLQ.com
Bruce Tedeschi says
What are 4l .net chips selling for?
Raymond Hackney says
In the $240 to $250 range. Exceptional patterns much higher of course.
Bruce Tedeschi says
I have .net names with patterns in 4l .net such as gagg.net. Would they be comparable in that sales price range?
Domain Shame says
I would rather have the less volatile LL.com.
Shane says
BullS aka Bad Breath,
Bro, the value of your car changes depending on how much gas you have in it and you say you’d rather
have an LL.com. Who are you kidding? You want to invest? Invest in a dentist and some toothpaste.
Your Daddy
Domain Shame says
Who or what the F is BullS ?
Theodore says
Are the 2L any TLD including new extensions ?
Rick says
Of course most would take a real asset like NN.com or NNN.com over this crap that a bunch of domain bloggers and brokers have conspired to hype. Hey Mike will there ever be a Dot Fraud extension ?
Gabriel says
Finally someone has the balls to say what the score is. I read that ws post on Elliot’s blog and almost threw up.
Shane says
Rick,
I have to agree with you on that. You’re talking assets of a million for a NN and $50K plus for an NNN.com. I would easily rather have those. But I get your point. You don’t like what we’re doing. PS: Please read the header. This is a post by Raymond Hackney. It really can’t be in a bigger font. Glad you’re on the other side. We need more attention to detail on our investment team.
Gabriel,
It’s really not worth throwing up about. Getting emotional about someone else’s investment in names just doesn’t make sense. You can’t go short on domain names although it’s obvious you would if you could. What’s going to make it even worse is the news coming up. Just don’t know the next stage after throwing up.
Rick says
Hello Shane, I am aware that Raymond wrote the post, I am sure Mike reads his own blog and that is why I asked him the question here, rather than trouble him with an email.
To your point about liking what you are doing, I really don’t care what you are doing, you are inconsequential. Jason at Qlq wrote the article about less upside potential for short names like LL and NN.
Shane says
My apologies, I thought the “over this crap that a bunch of domain bloggers and brokers have conspired to hype. Hey Mike will there ever be a Dot Fraud extension” Seemed to extend beyond the original point of the article. It’s ok to disagree with anything. That’s what freedom of speech is for. Accusing parties of fraud is a totally different, legal matter. I highly doubt you are accusing any one party of fraud. I assume you are just having some fun on a Friday night. But if you’re serious please state who you think is defrauding people.
Rick says
I did not accuse anyone of fraud, I believe there is a lot of hype, some might say that is just hyper marketing. Hype in small doses is ok with full disclosure. At least you and Rosener and Pollock have done that. There are some that could possibly be buying up an extension and saying one thing and doing another, I hear people imply that maybe happening in China.
Dot Fraud was toward ICANN for allowing all these convoluted extensions.
Bart says
Any thoughts on four letter .biz chips ?
Dot Win says
I think .cc or .ws are better than .biz. I wish I bought some nnnn.cc years ago.
Shane says
Thanks Rick for the solid explanation. I appreciate you taking the time. The great thing about all these extensions is I can pick which ones I want to buy or not buy. Most being in the not buy category. I hope you do well in whatever names you choose. Again, thanks for taking the time
Raymond Hackney says
The silliest thing anyone can do in this business is think that there is one way to make money. Yes if you are George K and own School.com and several LL.com names then of course seeing people register anything short in bulk in alt extensions seems like a stretch, it may seem foolish even. But there is money to be made with these strategies, it involves a higher degree risk than a portfolio owned by someone like Anything.com.
What some don’t understand and some understand but don’t like, is that domain names could be traded like Forex, that people would seek out to take a big position in the equivalent of EUR/USD and maybe only look to trade for a few Pips, (one pip is equal to 0.0001). Some people want to buy 200 4L.net chips at $50 and sell them for $100. Others will call them fools, but look I consider myself a fool for not owning more 4L.net Chips at $10 to $20, because the one’s I did buy I sold for $250 to $300. That is not bragging far from it, I owned 20 when I should have owned 200. I mean that is nothing compared to my screw up in 4N.com when I was hand regging and could have grabbed more at reg fee, you sometimes don’t stay focused on your strategy and waiver. There are guys I know who believed in 4L.com Chips up til $1,500 then they thought it was the top, and sold, they made great money, just not all the money, which you are never going to make anyway. You need a bankroll, a safety net and focus on the day to day trading activity.
5N.com owners who were hand regging back in the day, were seen as outsiders who missed the 4N.com train and could not hang with the big boys.
This industry has changed in one way, but the old way still works too, that is the beauty of domaining, you can choose to join a group, work with 1 or 10 or you can go your own way in solitude and still make money.
Just so long as people are honest about their affiliations I think that is all that matters. We all can’t own the best of the best, so does that mean go home ? Plenty of people have found other ways to make money in niches that were not ultra premium.
Ryan says
Who is the end user for 6N.com, 1,000,000 domains at $8M in renewals, where is the general use for 02147.com?
steve says
@raymond
“Just so long as people are honest about their affiliations I think that is all that matters. We all can’t own the best of the best, so does that mean go home ? Plenty of people have found other ways to make money in niches that were not ultra premium.”
Spot on. The problem, of course, is people choose not to reveal their affiliations, agendas, or their own personal reasons for their opinions (portfolios, premium short word.com, , LLL, NNN (to the Chinese, etc), consultant fees, GTLD hype-induced, etc)
Don’t exactly blame anyone, as long as the intent is NOT to mislead or misinform or deceive
Ryan says
Just because these guys have their own blogs does not make them gods.
$10, $8 for a domain, 99cents for hosting, and $1.01 left for a big gulp, and your a blogger in business.
All the sudden single word .com’s are low reward, low risk, but any 2L.CRAP is low risk, high reward
2L.com medium reward, this whole report is total BS
We all know China will implode when it comes to domains, anyone who has seen the highs, and lows knows there is no way 4N.ws kind of crap domains can sustain themselves with annual renewals, and a lack of end users.
Everyone wants to pass the buck to the Chinese, as the same speech they have 1.5B people and they all need domains, is a total crap statement.
This is just another avenue for them to play the monetary systems they are dealt. When it comes full circle, they will be selling 2N.ws domains at DNFORUM for pennies on the dollar.
Flowers.Mobil sold for $200K, 1800 Flowers bowed out, Flowers.mobi sold again for $10K, that person got tired, 1-800 Flowers finally got the name for $5K, full circle
SoFreeDomains says
I hope the domain name market will not crash one day like the stock market.