Sunday, April 22, 2007

3 Letter Domains - Supply and Demand

Over the last few months there's been a greater amount of speculation in 3 letter domains. 3 letter .com domains are selling well into the $x,xxx range minimum and have increased in value every month for the last 4 years.

As more attention is continue to be paid to 3 letter domains, many owners of 3-letter domains are reporting more and better offers coming their way. Of particular interest is the new attention of domain investors in Asia and Europe. Many in the English speaking world wrote off 3 letter domains that contained lower quality letters (such as Q, Z, Y and Z) as names with only very limited appeal. But now, with the immergence of particularly the Chinese internet market, LLL domains of all letter combos are now getting attention. In Chinese and other languages, X is a great letter and even Z gets a lot of attention.

The lesson from this is that there's no such thing as a non premium 3 letter domain name. Values continue to grow and market and demand grow while supply actually decreases (as more LLL domains fall into end-user hands daily).