Value of 2 letter .ca's (3 Viewing)
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Just spitballing LL investments here...
Only about 10% of the LL.ca's are what I'd call actively being used as a website. The other 90% are pretty much up for sale. And many of those were probably grabbed early by the end users, so they didn't pay the 6-figure end user prices, or at the very least they paid very cheap price compared to today's average LL BIN of $150K CAD.
Lets say only 50% of the LL.ca's actively being used were bought in the aftermarket over the past 20 years at an end-user price. That is 1.7 LL.ca aftermarket sales per year on average, out of 676 total LL.ca domains. That's a 0.25% (0.0025) yearly sell rate. Project that out if you own just one LL, that would be 400 years on average before any specific one sells at an end-user type price.
Now lets say you were a genius and hand-registered all 676 of them, so that's just about $7500 / year in renewals. And if you sold 1.7 per year at say $100,000 CAD (very generous), that would be $170,000 on $7500 in expenses, or a bit more than a 20x multiple. 34 sales over 20 years is $3.4M - 20 years of renewals @ 7500/yr = $3.25M net or $162K/year net. That would have been a genius move indeed.
But what if you bought them in the aftermarket instead? Lets say you bought them all in the aftermarket at a cost of $5000 each. Do you think that would be a good investment?
That would be $3.38M for all 676 of them. Based on the previous assumptions, you still wouldn't have broken even, and that's without even considering the time value of money.
Bottom line, if you were buying LL's in the aftermarket at mid $XXXX prices, you would have to have bought a lot, been very selective, been a good salesman, had a little luck AND have been a very good and patient negotiator to have made money. Otherwise, owning a random LL or two is very much a lottery ticket, and more like a scratcher at that.
Only about 10% of the LL.ca's are what I'd call actively being used as a website. The other 90% are pretty much up for sale. And many of those were probably grabbed early by the end users, so they didn't pay the 6-figure end user prices, or at the very least they paid very cheap price compared to today's average LL BIN of $150K CAD.
Lets say only 50% of the LL.ca's actively being used were bought in the aftermarket over the past 20 years at an end-user price. That is 1.7 LL.ca aftermarket sales per year on average, out of 676 total LL.ca domains. That's a 0.25% (0.0025) yearly sell rate. Project that out if you own just one LL, that would be 400 years on average before any specific one sells at an end-user type price.
Now lets say you were a genius and hand-registered all 676 of them, so that's just about $7500 / year in renewals. And if you sold 1.7 per year at say $100,000 CAD (very generous), that would be $170,000 on $7500 in expenses, or a bit more than a 20x multiple. 34 sales over 20 years is $3.4M - 20 years of renewals @ 7500/yr = $3.25M net or $162K/year net. That would have been a genius move indeed.
But what if you bought them in the aftermarket instead? Lets say you bought them all in the aftermarket at a cost of $5000 each. Do you think that would be a good investment?
That would be $3.38M for all 676 of them. Based on the previous assumptions, you still wouldn't have broken even, and that's without even considering the time value of money.
Bottom line, if you were buying LL's in the aftermarket at mid $XXXX prices, you would have to have bought a lot, been very selective, been a good salesman, had a little luck AND have been a very good and patient negotiator to have made money. Otherwise, owning a random LL or two is very much a lottery ticket, and more like a scratcher at that.
lotsofcoffee
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Looks like someone just bought ym.ca - it is no longer listed for sale.
theinvestor
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It’s fun to stay at the YMCA
Nafti
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There is an interesting story to this one which I won’t disclose here. I will just say that Peter had zero intention of selling this for so cheap. It was sold by accident for that low under the assumption that it would reach 5 figures.theinvestor said:
There is one very prominent name missing from recent sales and that is we.ca. I’m assuming we all know about WE. I know the selling price but I will email the previous owner to see if I am able to list it publicly.
On a side note, I had sold be.ca in 2019 for $40K to be paid out over 18 moths but the owner went AWOL. After hearing of Adam’s two recent 2 letter sales, I’m thinking I would have undersold it anyway.
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Nafti said:
The auction houses always put the screws to you to convince you to go with no reserve - as a way to generate interest. But they've got nothing to lose, so they don't care. And no offense to Peter, and Kudos to him for having the balls to try it, but IMO it was a dumb move. First off, Namescon is clearly just full of domainers, not end users, so I never understand selling domains in these auctions unless you're trying to liquidate, flip a domain, or just do it for attention. Furthermore, this was Namescon Europe, with fewer Canadians attending than the Vegas shows. Very few people there would even be allowed to own a .CA!
Nafti said:
Actually, I didn't know about this, how would we have known, was this in the news or something? Feel free to share all of the story that you can.
Nafti said:
Hopefully they at least made one payment before going awol?!?
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domains said:
An LL.ca listed at 6-figures is a lottery ticket, while an LL.ca bought for low to mid 4-figures (assuming good letters) is more like a blue chip stock.
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rlm said:
Sorry, but I had to laugh at this one.
But hey, at least it wasn't listed at NamesCon Kazakhstan, right?
Spex
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rlm said:
Can't find anything specific to the .CA, but George Kirikos did some digging this summer and found the charity paid $1million for WE.org, via two separate $500k transactions split between different branches of the charity or something
https://domaingang.com/domain-news/we-org-last-domain-sale-was-for-one-million-dollars/
So if they paid a million for the .ORG, I'd be willing to guess the .CA went for a solid six-figure price
Nafti
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rlm said:
Yup, I would not have tried this especially with a name like CD or any name for that matter. No reserve auctions are great if you have a high starting price but that goes without saying.
When I had a deal in place for be.ca, unfortunately I did not receive a down payment. After a few emails back and forth and a phone call, I met up with him over coffee. Without writing a novel, I will say that a handshake means nothing to anyone anymore.
theinvestor
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No one biting on YM.ca yet?
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theinvestor said:
Nope as I hate the starting Y, but I do wish I bought SI.ca for $4K - I had no idea it was available for that low.
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