Tuesday, October 25, 2011

NNNNN.com Buyout Update

NNNNN.com domains (five digit .com domains) remain all bought out.  The buyout has held for nearly a month.

What's more, supply is tightening as well.  The number of daily drops has fallen off a cliff, in the five days from October 24th to October 28th,  only 107 domains will drop, which represents an average drop rate of around 21 domains per day.  This compares to an average drop rate over the past few months of more than 60 per day. 

With such a small drop rate the buyout is certainly sustainable.  It remains to be seen whether the drop rate will stay this low.  To put the numbers in perspective, the number of LLLL.com's dropping over the same 5-day time period will be 149. 

However, it is likely that even if the drop rate does not stay this low, supply will continue to tighten compared to historical averages.  There have been several hundred auction sales of NNNNN.com domains this year, mostly on Chinese auction sites like 4.cn, and the average sale price is well over $100.

Continued growth of the Chinese internet, strong sales of the domains, tightening supply, and a buyout that has been foreseeable since summer has probably convinced many holders to renew their domains.