Numeric domain names have been on my mind quite a bit this year. I’ve written a number of articles about 5N .COMs selling for mid four-figures in expired domain auctions and overall I’ve been watching numeric .COMs more than usual. Well, more than usual is a pretty low bar since historically I haven’t paid any attention to numeric domain names.
So why am I starting to change my focus? One word – liquidity.
What has been attracting me to numeric domain names is the fact that based on the number of numbers (i.e. 4N, 5N, etc.) and the actually numbers in the domain, you can come up with a value that investors around the world will agree on.
My go-to primer for the fundamentals of numeric domain values is GGRG, aptly named – Numeric Domains 2.0 – the Definitive Guide. Here’s one of the early paragraphs in the guide that will probably make you want to read more:
“Where would you have been if you had invested $15,000 in a random 3 number .com like 479.com at 18 months ago? Well, as of today, you would be probably able to sell it for around $60,000. This is why you should study carefully this niche if you are looking to achieve disproportionately better returns on your portfolio. The following article aims to be a near complete resource on the topic. I spent several hours putting it together – hope you enjoy!”
The challenge with brandables and even solid one and two-word .COMs is that if you need to sell them, today – you’re likely going to take a massive haircut on value. Suppose you buy a one-word .COM for $50,000 – and you know it could sell for $250k (this happens all the time BTW), but then, something happens in life and you need to sell it right away, you might have to let it go for $25k or lower, who knows. The problem is the domain only has a value in the six-figure range to an end-user, getting investors to agree on a price your happy with is likely going to be a challenge.
So as I look forward into my portfolio planning for 2019 (which I do in Q4 of each year) I see numeric domain playing a major part in my acquisition strategy. Of course, as usual, I’ll bring all of you along for the adventure, for now I have a lot more reading, watching, and learning to do.
What do you think? Are numeric domain a good bet for the future or am I going to regret this decision five years from now? I want to hear from you, comment and let your voice be heard!