Why are Short Domains so Valuable?
Updated: Apr 24, 2020
Not much happens on the internet without having a domain name to start with.
And in the online world – particularly in these days of smartphones and tablets ruling the roost – a short domain name can be absolute gold.
A special category of these are 3 letter domains – (3L).
If you have a three word business name, then a 3 letter acronym domain is the way to go. More and more businesses are either making the change straight away – or redirecting the short domain to their existing site. (Check out some examples further down).
Do they cost a lot?
Expense is a relative term. You get what you pay for.
I’ve always loved the “Gucci promise”:
Quality is remembered long after price is forgotten.
For quality Australian .com.au 3L domain names, be prepared to invest anywhere from $3000 to $25,000 – some have sold for less; some have sold for more.
But one thing is for certain in my opinion – 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.
Is there an aftermarket for these domains?
Pay.com.au sold for $168,500 in the last 6 months, and
CPA.com.au went for $50,000 last year.
In the last two weeks, RFM.com.au sold for $17,050
They are short, unique and 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.
Some recent examples of 3L .com.au purchases:
Digital Door Locks acquired DDL.com.au
Victorian Crane Hire acquired VCH.com.au
Insight Electrical Technology acquired IET.com.au
Walker Corporation acquired PSQ.com.au for their Parramatta Square development.
White Dog International acquired WDI.com.au
The IST Group from Sweden acquired IST.com.au
Queensland Fishing Brokerage acquired QFB.com.au
If you have the opportunity to acquire a 3L domain that relates to your business, then my advice is don’t hesitate to try and strike a deal. If you don’t buy it, then there is a good chance someone else will – and then it will probably be gone forever.
This article originally appeared in Domainer