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Three letter domains?

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Why are the three letter.com names priced so high? It seems they would be harder to remember than words that mean something. (For instance) If I heard an advertisement on TV or radio about sweet Vegas deals (when I got to my computer to look up the web site) which would I be more likely to remember? SVD.com or SweetVegasDeals.com ? I’m confused as to what makes a good domain name. Thanks to everyone on this forum for some great information for newbies .
 
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acronyms are memorable.

the reason that they are so expensive is because of supply and demand.
17576 combinations for 3 letter domains whereas there are unlimited combinitions for other words

along those lines B-)
 
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Welcome Patches and great thread.

As one who works greatly with 3-letter domains, I believe they have several things going for them, such as:

1. Acronymns are for the most part very easy to remember. (ie. BetterBusinessBureau.com or BBB.com...Certainly the shorter version is easier to remember and there are no spelling issues, such as with "Bureau.") Life is full of acronyms and people tend to enjoy using them whenever possible.
2. Short and Clear domains (such as acronyms and one word domains) offer a certain level of prestige and standing for the companies that own them.
3. There are only 17,576 3-letter combos per each extension, and though many companies may share a common 3-letter acronym, only one can own the 3-letter version in an extension. And 17,576 does seem like a big number, but it's really relatively small, and consider that all 3-letter combos are taken in .com, .net, .org, .info, .biz, .us, .co.uk, .de and rapidly getting registered in many of the other lesser known extensions.

I don't know if these few words can offer a small view of why 3-letter domains are so valuable, but do also consider that so many of the 3-letter domains are already in end-users hands and the number still available for purchase (from their current non-end-user owners) is dwindling daily as more and more fall continue to fall into end-users hands. Supply and demand takes over and the prices just seem to rise and rise and rise!

Hope this helps!
:) Andrew
 
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Hey Andrew,
I got a question for you... What is your opinion of 3 character .com's. ? It seems to me that there are no 3 character .com's as well as 3 letter .com's available. Are there any stats on how many letter/number (spicfically 1 number 2 letters, I am sure someone has done the math) 3 character .com's are possible? I would think that 3 character .com's (letter/number combos) are also going to be worth a lot due to supply/demand.

Andrew
 
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Hello Andrew...

Good question. Here's the stats on 3 character domains.

Basic premise is that there are 10 numbers and 26 letters that can be used for a total of 36 possible characters per slot with 3 slots available in any 3 character domain.

Thus, mathematically, you can figure that with 3 slots, there is are 36 possibilities per slot, the math goes:

36 x 36 x 36 = 46656 possible 3 character domains per extension.

This said, you can subtract out the pure 3 letter (17,576) and pure 3 number (1000) domains and you'll have the total of 3 character domains left (which contain a mix of letters and numbers)

Thus:
46656 - 17576 - 1000 = 28080 possible 3 character (which contain a mix of letters and numbers).

Thus your absolutely right about supply and demand. All the 3 letter, number and character domains are taken in the .com extension and with the supply taken and decreasing via end-users eating the supply, as the demand rises, so will the prices.

Perhaps the main difference as to why 3 letter and 3 character domains have vastly differing values (pure 3 letters are worth many times the values of 3 character domains) is that 3 letter domains stand more commonly as acronyms. A mixture of letters and numbers complicates the commonality of acronym use, but still holds strong with ease of being remembered and the prestige level of being a short name.

Hope this helps and isn't too crazy an answer to your question Andrew.

Thanks,
Andrew
 
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Just a simple question of Supply and Demand :)
 
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Thanks for your info.

I now understand why 3 letter domains are worth so much. Since all three letter acronyms and one word domains are taken, how long before two word domains become more valuable? Will it be that longer acronyms (no matter what the length) will continue to retain a higher value? I have checked out several different forums sites for information on domain names and Namepros beats them all. Thanks for the great site!!
 
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Three letter names give the impression of a large company, ie MCI, IBM, etc. They also make versatile acronyms so there is a wider market for them. It's also a corporate market which generally means a better return.

It's easy to say “supply and demand” causes everything but that doesn't actually explain anything. In fact, it's not quite true.

There are 0 available 3 letters, and 0 available 3 chars. Why is there such a big difference in price? Is it the 27^3-26^3 difference in possibilities? No. It's simply because 90% of all three char names are owned by and traded amongst speculators. Speculators create the demand and restrict the supply. The rest of the market is oblivious to this trade in names they have no use for.

This is not to say there aren't good 3 char names. There certainly are. And there are bad 3 letter names as well. The point is that can't simply equate quantity and availability with supply and demand.
 
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jdk.in

i appriciate your feed backs

thanks,
jaikini
 
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patches said:
Why are the three letter.com names priced so high? It seems they would be harder to remember than words that mean something.

What do you know these companies better by and which they normally use in business and what works better on the internet:

AOL.com or AmericaOnLine.com
MSN.com or MicrosoftNetwork.com
IBM.com or InternationalBusinessMachines.com
ABC.com or AmericanBroadcastingCorporation.com
CBS.com or ColumbiaBroadcastingSystems.com
SBC.com and SBC.us or SouthwesternBellcompany.com
ATT.com or AmericanTelegraphandTelephone.com
FBI.gov or FederalBureauofInvestigations.gov
OSU.edu or OhioStateUniversity.edu
MMM.com and 3m.com or MinnesotaMiningandManufacturing.com, or 3Mcorporation.com
JFK.aero or JohnFKennedyAirport.aero


Acronyms can eventually take on a meaning when used enough to be easier than the longer company name to remember. In domain, short is almost always preferable, particulary for email addresses.

They can be acronyms, stock ticker symbols , known airport codes, radio/TV call signs, personal initials, and even 3 letter words.

VZW.com and VZW.info, Verizon's stock ticker code, points to Verizon.com Many would consider this a non-desireable combination of letters.
 
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Short.
Brandable
Associative.
Memorable.
Minimalistic.
Corporate identity/image
- equates w/ status = trend of businesses wishing to use initials for company monicker and/or product line.
Finite supply (ie there is only one place for a company to go if they want [theirinitials].com- the domain name "owner".
Sales leverage. (see above)
High appreciation level. Hands down, the highest increase in value of any name group over the past year.
ie Last Feb 3LL.info price, reg fee; Today, low $xxx, for 3LL w/avg projected usefullness. Last Feb 3LL.com, (roughly) $1.200-$1500; Today, (roughly) $2,500-$3,500
Liquid. Regardless of the motivation and intent of the buyer, there is a sizeable pool of motivated individuals in the market for 3LL names.

It's simply because 90% of all three char names are owned by and traded amongst speculators.
Accepting the 9:1 ratio, (for the purpose of analysis), the 90% group is speculating that their name(s) will gain acceptance into the 10% group, and in the meantime, have seen their name investment(s) appreciate, (conservatively), at 100% growth, over the past year.

Speculators create the demand and restrict the supply.
Supply and demand economics. The question of whether or not specualation has inflated the market, (what you may be implying), is an issue that investors and speculators, (higher risk investors), deal w/ in any investment market, whether that market be in real estate, stocks, bonds, futures, options, currency, diamonds, precious metals, other commodities, etc

The rest of the market is oblivious to this trade in names they have no use for.
I trade in commodities, but not in pork bellies, and am oblivious to the pork belly market.
 
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zestydomains*com I liked your math, but i think you forgot the hyphen " - "
plus i have 3 char .biz domain x-s.biz if anyone is interested.
( *.biz are much lower than *.com and *.net 3 char. domans)
 
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Interesting thoughts guys...

Biboz, good observation that I left out the "-", which would mean 36 x 36 = 1296 more combinations to add to my above math. That said, though, one could also argue that I left out all the IDN possibilities, which would certainly make for many more combos.

The key to it all is quality, brandability, memorability and usefulness. 3-letter names excel in this respect. Further, I would not be surprised if we were to look back at this thread a year from now and prices have doubled again (or more).

As far as the arguement regarding supply and demand, if it's not supply and demand, then what principle would be in effect? I could appreciate an arguement made that each name is unique in it's own right and thus has it's own value, but by and large, the wholesale market in 3-letter domains is truly supply and demand. As supply decreases with sales to end-users, the remaining available 3-letter names become more valuable (as they become more and more rare). Thus, if you want to play in the 3-letter world, you have to pay (more and more :) ).

Great thoughts guys and I appreciate the dialogue here. I'm with Grrilla...this is fun!

:) Andrew
 
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One more point, versatility:

Most one word domains have some limited purpose, usually to one or several industries, and in one or few languages. 3L domains can be used in any industry, for personal use, and in most any language that used the standard character set.
 
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Grrilla said:
Accepting the 9:1 ratio, (for the purpose of analysis), the 90% group is speculating that their name(s) will gain acceptance into the 10% group
This is just more numbers mumbo jumbo. It's like saying that the kid who steams stamps off his moms mail is expecting them to gain acceptance as a six digit investor items. This simply isn't going to happen, at least not this century. It is not simply the length of a name that gives it value, there are many other more important factors.

Grrilla said:
Supply and demand economics. The question of whether or not specualation has inflated the market...
It's not a question of speculators inflating the market, it's a question of speculators inventing the market.

Grrilla said:
is an issue that investors and speculators, (higher risk investors), deal w/ in any investment market, whether that market be in real estate, stocks, bonds, futures, options, currency, diamonds, precious metals, other commodities, etc
Great, but “three character domain names” is not a commodity, not listed on any commodity exchange, and not traded by anyone but domain speculators amongst themselves. People buy diamonds, real-estate, even pork bellies for reasons other than speculation. I have never heard of anyone but a speculator buying a domain name strictly because it was three characters.

Grrilla said:
I trade in commodities, but not in pork bellies, and am oblivious to the pork belly market.
And do you buy your pork bellies based on length alone or is quality important?
 
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This is just more numbers mumbo jumbo.
The 9:1 ratio, mumbo jumbo, as you put it, was used only because you brought up the 90%-10% 3LL usage differential and I was trying to accomodate you and respond using your analytics, although you have presented no solid basis for them.

It's simply because 90% of all three char names are owned by and traded amongst speculators
.
9:1 isn't my invention, it's yours. You missed my point.


It's like saying that the kid who steams stamps off his moms mail is expecting them to gain acceptance as a six digit investor items. This simply isn't going to happen, at least not this century.
This comparison is so overdrawn, it lacks any analogous value.


It is not simply the length of a name that gives it value, there are many other more important factors.
Did you happen to read the top half of my post??->
Short.
Brandable
Associative.
Memorable.
Minimalistic.
Corporate identity/image - equates w/ status = trend of businesses wishing to use initials for company monicker and/or product line.
Finite supply (ie there is only one place for a company to go if they want [theirinitials].com- the domain name "owner".
Sales leverage. (see above)
High appreciation level. Hands down, the highest increase in value of any name group over the past year.
ie Last Feb 3LL.info price, reg fee; Today, low $xxx, for 3LL w/avg projected usefullness. Last Feb 3LL.com, (roughly) $1.200-$1500; Today, (roughly) $2,500-$3,500
Liquid. Regardless of the motivation and intent of the buyer, there is a sizeable pool of motivated individuals in the market for 3LL names.


It's not a question of speculators inflating the market, it's a question of speculators inventing the market.
In responding to my original quote, you made an ommission.
I didn't say that speculators are inflating the market. I said, "The question of whether or not speculation has inflated the market, (what you may be implying), is an issue that investors and speculators, (higher risk investors), deal w/ in any investment market..." Your omission changed the context of my statement and may confuse some readers about the meaning of my O/P and my position on the issue. Regardless, and although I don't completely agree, whether the market has been inflated or invented is immaterial. Names are bought, names are sold, revenue is realized. The name group has been the top performer of all other name groups over the past year, regardless of your analysis and regardless of whether you like it or not.

Great, but “three character domain names” is not a commodity, not listed on any commodity exchange, and not traded by anyone but domain speculators amongst themselves. People buy diamonds, real-estate, even pork bellies for reasons other than speculation.
I liken the 3char domain name market more to the diamond trade than to the commodities market, although I prefer intellectual property to rocks. The money spends the same. (also,See above)

I have never heard of anyone but a speculator buying a domain name strictly because it was three characters.
. You must have had most of your contact w/ speculators who are mentally challenged. The investors that I know that "speculate" in the 3LL market do so, because of the qualities I mentioned at the top of my O/P, not "strictly because it was three characters." That would be ridiculous, IMO.

I have recently sold one 3LL .biz, and 3 other 3char names that will cover most of the cost of my 300+ 3 char renewals for another year. I have made several other smaller sales of 3LL and 3char names over the past 6 mos. My experience w/ 3LL, and 3char names has been a very positive one for me, which, in the end, overides any theories or debates about the subject, pro or con. Hey, no one's twisting your arm to get involved w/ the 3char market. However, (back to theory), the conjectures that you have made about the market, just don't add up, or they are irrelevant to the 3LL and 3 character market that I've been experiencing.
 
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Sorry, maybe I didn't make myself clear. I specifically stated “three char names” in my post. You seem to have missed that. My points are simply this:

1. Name length does not guarantee, or in many cases have any bearing on , the value of a name.

2.“3 char names” is a speculator invention. It's has no meaning. It's about as ridiculous as saying buy shares in a company because it had a three letter ticker symbol.

3.All these calculation based on number of possible character combinations are complete bunk. They are used to twist the minds (not arms) of people who have been raised to mindlessly accept statistics as proof of whatever the author wants you to believe.

I would not say that people who believe that q3j.com is worth something are mentally challenged. They have simply gotten caught up in the neo-dotcom hype and deluded themselves. This is perfectly normal. We've all gone and registered a bunch of names that seemed like a great idea at the time.

I see 3 char .coms offered on forums like this for $10-$30 on a regular basis. That's mainly where I get my notion that these are low value names traded strictly among speculators.

I appreciate that a lot of what I say goes against the dogma of many speculators here and that I will receive howls of disapproval for saying it. Still, it must be said. If no one voices their disagreement then this pseudo scientific tripe will be accepted as fact. I am not trying to win an argument. I am simply trying to ensure that an objective opposing view point is presented along with the hype.
 
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Sorry, maybe I didn't make myself clear. I specifically stated “three char names” in my post. You seem to have missed that.
You made yourself clear and I did understood what you "specifically stated". Although the O/P was focused on 3 letter names, I was aware that we had drifted and were discussing both 3LL and mixed 3LN, which both are 3 char names. Don't understand your confusion over this.

You are opinionated and you like to use an attacking, somewhat antagonistic, style, (which could be interpreted, by some, as being mildly condescending or demeaning), in the support of your views. To wit:
-names they have no use for.
-numbers mumbo jumbo
-It's has no meaning.
-It's about as ridiculous as...
-They are used to twist the minds ...
-people who have been raised to mindlessly accept statistics as proof of whatever the author wants you to believe.
-dogma
-this pseudo scientific tripe
-hype.
I disagree w/ many of your ideas about this subject, and don't particularly like the way in which you have presented them, but I support your right to offer an alternate point of view, as well as, the free exchange of ideas, regardless of how opinionated they may be on both sides of the issue.

PS There is much that could be said about the diversity of experience, substance, style and selective perception, regardless of the position one takes.
 
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Sorry if I come across as opinionated but I guess I am. It was not my intention to demean anyone. I have tried to be very careful to only demean three char names and the methods used here to rationalise their value. I hope no one took that personally.

I don't like the word “condescending”, but in the context you use it I'll have to plead guilty. I firmly believe that people have been trained to mindlessly accept any meaningless-pseudo-scientific-bunk-tripe-mumbo-jumbo statistics presented to them as proof that the dogma/hype being presented is fact. 98.7% of all statistics are not just made up. They are carefully and selectively manipulated to promote an agenda.

I like to point this out every so often. Not out of arrogance but because I honestly believe it might help someone.
 
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I like comparing domains to jewelry and precious metals. If no one hoarded them, then shiny bits of glass and metal - just as most domain names - probably can't be sold for anything significant. However, people do (hoard them, that is), and this in large part is driving price.

Before the 3-letter .biz, .info, and .us were bought out, even good combinations couldn't easily be sold for $100. After the buyout, these kinds of sales now routinely happen.
 
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98.7% of all statistics are not just made up. They are carefully and selectively manipulated to promote an agenda.
Well, prima, I'm not sure if the 98.7% figure you are using has been, "...carefully and selectively manipulated to promote an agenda.", but I do see the gist of what you are driving at, and am happy to say that we have found an area of agreement. Not to dilute what you are saying or take away from this joyous moment, but from my POV, this technique can be applied to just about any marketing/sales scheme, whether numbers are brought into the picture or not. I mean, does anyone really believe what they are being told in television ads, anymore?
Statistics: A numerical value, such as standard deviation or mean, that characterizes the sample or population from which it was derived.

Calculations such as, "46656 - 17576 - 1000 = 28080 possible 3 character (which contain a mix of letters and numbers).", may be statistical, but do these calcs really enter into the area of statistical analysis, where the real manipulation occurs? A value could be created to demonstrate that the number of 3character names, relative to all names registered is very small number and this could be used to demonstrate the attractiveness of 3char names. Does this mean that they have an intrinsic, collectible value? IMO, yes. IYO, no. However, I don't see anything wrong or manipulative in offering calculations like the one above to present a message. People can see the info and ultimately make up their own minds regarding the info's relevance.

Now, a purveyor of 3 character names would likely prefer using a 3char :All domains regged statistic, rather, than say, a 3char:All active websites value to make a point, but this is not what I am seeing. What I am seeing, is raw, (and, depending upon your viewpoint), interesting, data that is being offered- accompanied by an interpretation of that data, but not a statistical manipulation.

Anyways, prima, exchanges, like the one that we have been having, have the effect of compelling me to do my homework, to think more deeply, and to, hopefully, expand my horizons, so, for that, I am appreciative, and I offer you my Tx.
 
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In terms of 3 char letter/number combinations I think the market is driven almost entirely by speculators, there is very little end user demand for this kind of domain. For 3 letter domains there is a fairly high level of end user interest for the better names though perhaps certain areas have been fueled by speculators also, especially the lower quality combinations and new extensions.
 
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I just sold 1X1.US to an enduser, have had offers made by endusers for 4AA.com, 4MD.net, and 4Rx.net (offers I didn't accept because I am hoping for a larger payday), and have received inquiries for about 4-5 other 3char names over the past 6-8mos. However, my best 3 char sale has been a 3LL and the jury is still out on my mixed 3char names. All of my mixed 3char names signify a meaning or have an interesting attribute or hook.

I am more apt to agree w/ the idea that the *random* 3 char name market is driven by speculators and/or collectors. However, who or what is driving the market is less important to me than whether or not the check clears.
who are you all anyways
Hey, it's Harpo.
:cy: Ohmmmm. :cy:
:D
i'm a minimalist, can't you tell?
 
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