Thursday, March 20, 2008

Evaluation of 100 Random NNNN.com's

I surveyed 100 random NNNN.com's, 15 were developed sites, 9 were Chinese sites, 2 were worddial sites, 1 was an Asian business (Asian Capital Resources Holdings Ltd., 1 was a music site, 1 redirected to Arabian Perfumes (?), and 1 was for Litchfield County (again, ???). The margin of error on this sample is about 10% at the 95% confidence level, so I need to do some more samples before the margin of error is reduced. Anyways, the number of developed sites is about what I would expect, we'll see if that holds up in future samples.

Like the NNNNN.com's, a lot of the developed sites are Chinese sites. Given that the Chinese market is one of the biggest growth areas for the internet over the next 5-10 years, this bodes very well for prices of NNNN.com's and NNNNN.com's. And, like the NNNNN.com's, the other developed sites are a random mix. The main difference between the NNNN.com's and the NNNNN.com's in terms of development is the use of zip codes. The zip code uses for the NNNNN.com's mean that about 45% of the NNNNN.com's are developed sites, a much larger percentage than are developed in the NNNN.com's. So, the percentage of NNNNN.com's available for a reseller market is much smaller than in the NNNN.com's. Usually, development potential decreases the more digits or letters you have, most likely more developed LL.com's than LLL.com's, and so on. So this is certainly a unique feature in the domain market which could have a potential effect on ultimate prices of NNNNN.com's. Also, the NNNNN.com's can be used as foreign postal codes for many countries, and the development potential for this has yet to be fully explored.

With other domains, there is a significant discount when you add another digit or letter to a domain that is often near or more than the scarcity factor. For example, random NNN.com's are worth about 15x as much as random NNNN.com's (about $10k v. $500), even though they are 10x as scarce. It is very possible that the ultimate disparity in prices between NNNN.com's and NNNN.com's will be even less, given that NNNNN.com's have more development potential and are more scarce, relatively, than their NNNN.com brethren.

0079
0140
0162
0208
0316
0456
0471
0524
0548
0726
0728
0789
1009 Chinese Site
1111 Litchfield County
1228
1264
1314
1331
1538
1551
1586
1708
1725
1761
1785
1935
2333
2350 Music Site
2386
2720
2980
3107
3313
3596
3674
3750
3839 Chinese Site
3866
4110
4201 Chinese Site
4291
4343 Chinese Site
4351 Google Maps (redirects to wwwid.net)
4472
4525
4601
4614
4813
4930 Chinese Site
4958
5084
5157
5220
5359
5454
5539 Chinese Site
5656
5768
5843
5881
5967
6147
6222
6532
6613
6946
7002
7047
7062
7108 Chinese Site
7227
7245 Worddial
7383
7457 Redirects to Perfumes of Arabia
7662 Worddial
7742
7789 Chinese Site
8025 Asian Capital Resources Holdings Ltd.
8093
8108
8110
8273
8305
8347
8359
8667
8670
8726
8791
8858 Chinese Site
9163
9165
9196
9285
9350
9511
9540
9551
9552
9619