LLL.com – $5,000 Barrier Broken

October 12, 2008 · Print This Article

On Friday at 2.00 p.m. Eastern Time, the auction hammer dropped at Sedo on VXG.com – with a closing price of $4,988

While OLU.com previously sold at $5,002, a lot of people said that this was simply the fault of the time and venue.  However, for VXG.com, the venue was Sedo, which most active domainers regularly follow, and the time was 2 p.m. EST, which is convenient for bidders from the West Coast to the East Coast and all of Europe. 

Also, there is a psychological factor to crossing the $5,000 barrier – at the time of the OLU.com sale, a lot of people joked that they would be willing to buy any LLL.com for $5,000.  I’m not sure that they would be saying this now – certainly they’re not acting on it.

I have been advising the selling of LLL.com since June 7, 2008 and written several blog posts about it since then.

While there has been a decline in the value of most domains since June 7, the decine in LLL.com has been particularly steep – at decline of almost 35% in just 4 months.  To put that another way, if you’d cashed out at that time, you’d have about 1 1/2 times as much money as someone who didn’t.

My recommendation remains to continue to sell your LLL.com.  I think that the minimum wholesale price will continue to decline in upcoming months. 

Particularly for the lower quality three letter domains, the fundamentals simply don’t justify the high prices.  For $5,000 you can pick up a decent .com domain that is much more likely to result in a profitable end user sale than three random letters like VXG.com.  The lower end of the LLL.com market has essentially relied on domainer interest for profit, rather than end user sales.  As domainers are hit by the credit crunch and they tighten their belts, these domains are poised to fall in value much more quickly than solid generic dot coms with end user sale potential.

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