Domain Strategy Bulletin
Published Every Saturday

February 16, 2019 (Sat)

There is a catch to – and a touch of Chinese too!

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Andrew Rosener must be wearing a special type of eyeglasses, because he often looks at a domain and sees great value hidden in it. On the DomainSherpa shows, his answer to why he has bought a certain domain often amazes me. Last week, the top broker mentioned that he recently bought the domain and said there's a catch to it.

Naturally, other panel members threw in all sorts of theories while guessing the price. David Clements really liked the domain because "all of those letters are like the wheel of fortune letters... L and R are super common letters... it starts off with an A so its 'American blank blank'". He speculated the price to be $40,000. Shane Cultra liked it because R stands for "real estate" or "realtor". He gave the number $35,000.

Of course, Andrew's answer was a surprise as usual. He actually paid $65,000 for and he added that his own action as "totally ludicrous, and nonsensical, and irresponsible". The catch? ALR is the initial of his name!

Now, even though was an expensive acquisition, its value nevertheless will rise high over the long term because LLL .com domains are rare -- there are only 17,576 of them. Their demand is huge from companies around the world as acronyms for long company names.

One country in particular is China, with very strong corporate demand for LLL .com domains. See my recent article "LL and LLL .com domains may be best choices for Chinese companies" for a detailed discussion. In fact, "A" is a great letter in the Chinese language because it represents the character 爱 (Ai = love). There are many company names starting with Ai. On example is 爱酷游 (AKY), a game startup which ranks No. 93 on the 2018 Top 100 Chinese Internet Companies. A Baidu search also led me to 爱作业 (AZY, education services), 爱搜街 (ASJ, shopping-related directory), 爱Q网 (AQW, seller of QQ numbers), and many more.

Legendary stock investor Warren Buffett once said, "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." LLL in general and ALR in particular are wonderful .com domains. While ALR is great in the USA, the name also has the potential of turning into great brands in China.

You can watch this episode on DomainSherpa.


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