Three letter domain names

Posted on June 10, 2007
Filed Under Domain Names |

Recent report released by NameBio suggests that the average market price of “threeletter.com” domain names is about $4,000. Namebio.com traces domain sales on secondary domain market. That’s interesing piece of information because it based on real sales - domain name appraisals are notoriously meaningless.

Domain investing is fueled by two factors: direct navigation (or type-in traffic) and PPC advertising - and, of course by Paul Sloan series of articles in Business2.com (see our previous post Making money on domain names: dirty business or brilliant strategy?). By the way Paul Sloan was very insightful in registering domain name “MastersofTheirDomains.com” in advance of publishing his article under the same name. The latest VeriSign Domain Name Industry Brief reports that in the first quarter of 2007 worldwide, there were a total of 10.7 million new registrations. The lion’s share came from 7 million new registrations for the .com and .net Top Level Domains (TLDs). So far I have seen very little evidence of direct traffic phenomenon. I checked out at Alexa a few domain names mentioned in Paul Sloan article “Masters of Their Domains” - their traffic does not justify revenue figures quoted in the same article. Probably it works for large (in order of ten thousand names) domain portfolios.

Sphere: Related Content