Short Domains Continue Their Popularity Rise

3 Letter domains continue to be acquired by end-users in Australia, and the average price paid for these unique acronym identifiers goes up and up.

Many of these sales go unreported, but Domainer has been informed that the domain FFI.com.au was recently sold by a domain investor for $30,000. The purchaser was Fortescue Future Industries Pty Ltd – a wholly owned subsidiary of Fortescue Metals Group Ltd (Fortescue). FFI specialises investing into clean energy projects.

I think FFI got themselves a bargain at $30k, but ultimately, it was a good win / win transaction.

Why are they so valuable?

There is only ever going to be one FFI.com.au available in Australia. Just like there is only one VAS.com.au – the sale of which (at $21,666) was reported here on Domainer in November.

As I wrote back in late 2019, Aussie 3L domains are never going to be cheaper than they are now. Simple supply and demand principles. Businesses that invest today will never look back.

  • They are an investment in your business future.
  • Unique and very easy to remember.
  • Offer brand recognition and legitimacy.
  • Help you stand out from your competition.
  • Fantastic for email for your business and all your staff.
  • Like a good house on the best street, they are always resalable.
  • Aussie 3 letter domains are so cheap compared to a dot com. Expect to pay a good 6 figures for these!

If you get the chance to acquire or invest in one of these rarities, then grab the opportunity!

8 thoughts on “Short Domains Continue Their Popularity Rise

  • March 23, 2021 at 9:24 am
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    Yep, a business can be forgiven for not having a LL domain (that is, two letters).

    But if they don’t have the LLL (three letter domain) when they ought to they look ineffectual and downright stupid.

    Adding a “L” to the end for “Limited” or “G” to the end for “Group” or “A” to the end for “Australia” comes off as lame or try-hard.

    It forces customers and other users to ask:

    “Why couldn’t this mob get the three-letter?”

    “What else can’t they do?”

    “They can’t solve their own problems, why should I trust them to solve mine?”

    *When it comes to branding:

    Just about every company is ‘limited’, no need to enunciate it.

    You’re not a ‘group’ unless you have a group of operating entities. Stop calling yourself ‘Group’ when you’re just one company, you are embarrassing yourself.

    ‘Australia’? You’re already in Australia. You’re not a multinational, just a SME, there is no need to add ‘Australia’ to the end – this is called word stuffing.

    Stop diluting your brand and be precise.

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  • March 23, 2021 at 10:07 am
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    30k not too bad. have sold a few 3 letter ones, they are by far the easiest domains to sell

    dont forget to add to the list of published sales youve got going

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  • March 23, 2021 at 10:55 am
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    Great sale for FFI.com.au !

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  • March 23, 2021 at 2:02 pm
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    Hey Ned (AKA 3L King 👑)

    Great article mate.

    I am with you on this one, they are totally unique & irreplaceable and only going up in price year on year.

    Of course not all 3L domains are equal so it will depend on the letter combo you have.

    I am trying to get as many as I can at the moment too.

    Cheers

    Ed

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    • March 23, 2021 at 3:16 pm
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      Ha ha – thanks Ed!

      One thing that I preach is that you never know which letter combo is going to be popular. Luck of the draw. Of course there are some obvious letters and combos that many of us naturally steer clear of.

      That said, then someone comes along with an enduser sale which turns that theory on its head!

      I’ve been having an extended breather from Drop (though I did weaken and purchase a few names in the last 7 days). But I’m back to having a breather, so fill your boots.

      People told me that they noticed the price of domains dropped whilst I was not particpating. Lol. 🙂 In fact, the same domain investor that sold FII.com.au said that he hand registered one that was not picked up on the drops. Good letters too!

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      • March 23, 2021 at 5:10 pm
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        No problem Ned.

        I have had a break over the past month or so from Drop too Ned.

        The majority of my 3L domains I have picked up over the past 10 years were for hand registration price or under $500 on the drops.

        It is a bit like picking up bars of Gold & Silver just laying around at those prices.

        You just have to have patience (like all domain sales really) to wait for the right buyer to come along or do some outbound sales if you want a faster turnover.

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    • March 23, 2021 at 3:30 pm
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      To narrow down Ed’s comments on letter combination for newbies, it comes down to how many buyers there are or might be in the future for that combination.

      Hence LLLs with Z, X and other obscure letters are less desirable than others. (Think: the opposite of Scrabble, more points for more common letters!).

      Whether it’s a LLL domain or any other domain, one of main things when it comes to valuation is:

      How many prospective buyers are there?

      How deep are the pockets of those prospective buyers?

      How many prospective buyers might emerge in the future?

      Fast-forward 5, 10, 15 years. What would 2-3 of your best buyers (ie ones that exist now as well as those that are likely to emerge in the future) pay for the domain if normal competitive tension was put between them?

      Why should the domain investor sell for a price that does not have regard to what others might be willing to pay for the domain, now or in 5, 10 or 15 years?

      These things cost less than $10 per annum to renew. Demand is only increasing.

      Domainers, when someone has come to you asking to buy your business asset, don’t ever let them wear you down with rubbish like “we’re just a start up, we can’t afford any more” or “the domain is a nice to have, not a must have for us”.

      I have heard every lie in the book, and had 4 figure opening offers turn into 6 figure offers. Don’t indulge low-ballers and time wasters.

      It’s up to an enquirer to:

      (1) Identify themselves and the entity expressing interest in your asset. If some muppet wrote “I want to buy your house” with an email address on a post it note and put it in your letterbox would you email them?

      (2) Acknowledge your rights to the domain name and state plainly that they wish to purchase (not “acquire”, “purchase”) it from you; and

      (3) Prove to you that they are your best buyer, or one or your best buyers for the domain. They need to prove to you that their offer is worth considering and that you should interrupt your affairs to consider it.

      This above is the key to maximising the ROI on a domain (besides development, which is usually much better).

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      • March 23, 2021 at 5:16 pm
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        Thanks for expanding Mark, some great info and tips especially for people new to domain investing.

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