After reaching an all-time high in late 2015, prices for short domains such as four letter .com domains have been taking a bit of a hit lately. There’s been a lot of chatter and speculation on the forums about where the market for these type of names is heading to in the months to come. Is it time to sell or is the perfect time to buy into this market? One investor who has been very successful riding the wave is Dutch domain name investor Tim Schoon of PEJ.com.
Tim is currently auctioning off 150 four letter .com domains on eBay at no-reserve. I asked him why he decided to auction off these names right now and Tim explained to me that it’s tax season in the Netherlands and he’s raising funds to pay taxes. Because LLLL are very liquid they are a great way to raise funds quickly.
He added: four-letters domains have been going up and down quite a bit during the past months. I think that we’re on the low end of the curve right now so I’m not too happy about having to sell these right now. I bought most of them years ago for pennies on the dollar so it should still be a good profit. I tried to list a mix of different types of domains, so there are some Chips, western premiums, a few CVCV’s and others.
Back in October last year Tim sold 118 four-letter .coms at Chinese marketplace 4.cn. So why go with eBay this time around? The batch sold at 4.cn was mainly attractive to the Chinese market Tim explained. The domains I’m auctioning now have more of a global audience so a global marketplace would be more appropriate. eBay is not as widely used for domain auctions as for example Namejet or Sedo, but it has many perks. The commission is fairly low compared to most other venues, the listings are very flexible and for new buyers it’s really easy to create an account and start bidding. eBay also offers some protection for both the buyer and seller which eliminates the need for an Escrow service on the smaller transactions.
When asked where he sees the market for LLLL.com domains headed Tim told me: It’s anyone’s guess. I think that it’s most important to focus on the quality of your portfolio and really think about the potential value of something you’re buying. For that reason I’m not a huge fan of the Chips that are only premium in Chinese, as that’s a limited market. There is much more value in domains which have good letter combinations in many different languages.
His company currently holds another 1,000 four-letter domains in it’s portfolio. “I especially like the western quad premium and pronouncables, but I have a mix of all kinds really. Selling these 150 domains doesn’t mean that I’m getting out of LLLL.coms, not at all!”
Looking at the auction itself which is ending this coming Sunday afternoon (US time), I spotted quite a few names on there that I consider to be very nice brandables such as Gixa.com, Hehi.com, Huve.com and Rawo.com