Giuseppe Graziano had an interesting observation in his excellent LLLL.com guide which he recently published, saying in part “you might have noticed how Chinese investors are bidding amounts that end users are rarely willing to match”.
He cited two specific cases,
For example, just a couple of months ago, I found myself explaining to the head of marketing for a large corporation that we had received a $27,000 bid from an investor in China for a three letter .com and therefore their $5,000 bid could not be considered. His reply was: “The seller is crazy not to take it“. Fast forward to another recent exchange with the General Counsel of a large software multinational with offices worldwide: “I spoke with my CEO and we can offer a maximum $50,000 for this domain”, talking about a NL domain that routinely received bids around the $100,000 range from Chinese buyers.
With that backdrop, I’m curious to hear your thoughts on the future values for the types of domains where investors are currently paying prices in excess of what an end user will pay. A couple possibilities come to mind:
- The right end users will eventually adjust their pricing higher to match or exceed investor pricing.
- There is a bubble in certain types of domains, and investor pricing will have to come back down to end user pricing.
- Investors will endlessly trade these types of domains back and forth with one another, with few of these domains ever being developed by end users.
- Something else?
In a market such as domain names where every asset is unique, the answer likely varies from one domain to another.