LLLL.com prices have skyrocketed from late 2015 to early 2016, then fell as of that point and have pretty much stagnated since. The price drop was dramatic but still, prices are *considerably* higher now than they were prior to the surge in Chinese interest.

So, what should domainers do?

Some say reseller market prices will increase again, some say they’ll drop. That’s not an analysis I want to make today.

What I want to focus on is something else: the end user dimension.

There are domainers who say “Just buy LLLL.coms or hold the ones you have and wait for end users to come along” and I think that’s a bad strategy.

In my opinion, LLLL.coms are a reseller market play rather than assets with genuine end user potential.

Before presenting my arguments, I want to make it clear that there are multiple types of LLLL.coms:

1) Chinese premiums (domains without aeiouv, some might argue lnprq are also to be avoided, even if domains with those combos are still considered Chinese premiums)

2) Western premiums (domains without jkquvwxyz)

3) Pronounceable LLLLs (primarily CVCV.coms)

4) Everything else

The “everything else” LLLL.coms are the cheapest right now. For the sake of our discussion, we’ll assume the rock bottom price is $215 (according to Chaomi.CC but do keep in mind that you can get them for under the chaomi price frequently).

I think it makes sense to start our discussion with the cheapest domains.

So, do these have end user potential?

In my opinion no, not really.

Buying at $215 and holding until end users come along may seem like a decent enough approach due to the low acquisition price but the thing is, a lot of people have tried this and failed… when prices were much, much lower.

A while after the Global Financial Crisis (7-8 years ago if memory serves me well), it was even possible (believe it or not) to grab such LLLL.coms at the registration fee.

And several domainers have done this.

Unfortunately, I for one haven’t heard any end user success stories for this approach and on the contrary, have noticed several people with large portfolios liquidating at less than what they paid.

Why?

While we can’t know for sure, it’s fairly safe to assume it was to a fairly large degree because the end user interest just wasn’t there. But to be fair, also because the reseller market values didn’t rise either for a decent period of time.

I’d say I’ve come across enough evidence that not even at the regfee level, buying low quality LLLLs and waiting for end users doesn’t work.

So for example buying 1,000 LLLL.coms at $9 a pop and renewing them at $9 a pop, hoping you’ll generate enough end user sales to at least offset the $9,000 renewal cost.

If that didn’t work, would the same business model with a $215 instead of $9 acquisition cost do better?

Unless end user demand jumped astronomically over the past 7-8 years, the answer should be obvious 🙂

What about Chinese premiums?

Well, I’ll just say that a lot of the names you could have hand regged at $9 a pop after the GFC were what we today consider Chinese premiums. In other words, WYXZ.com is considered a Chinese premium today but 7-8 years ago, it was considered the worst of the worst in terms of LLLLs.

Yes, I do understand why they’re called Chinese premiums but I seriously doubt an end user-oriented business model which revolves around them would do well.

Ok… Western premiums?

I do have more confidence in the end user potential of Western premiums but again, it has been tried before when prices were lower and I for one have never heard spectacular stories.

Call me neutral on these.

What about pronounceable LLLLs?

In my opinion, genuinely pronounceable LLLLs (most of the LLLLs people call pronounceable are crap) do have solid end user potential. My only concern is that with prices so high for really good LLLLs such as high end CVCVs, the upside seems limited.

….. time to draw the line.

Do LLLL.coms have end user potential?

In my opinion, most of them don’t.

I for one consider them a reseller/liquidity play, plain and simple.

If you think reseller prices will shoot up again, buy some.

If you think they’ll drop or stagnate, then don’t.

But I really think you’re deluding yourself if you use the “mythical” end user argument to justify an investment decision when it comes to LLLLs.