After the good feedback we got from our last two 'scarce domain' specials, today's focus is on the final piece of the puzzle: the extremely rare & coveted 2 letter .com. This is a tricky one to analyze (regarding how much they are worth) because they are not traded publicly that often and usually when they are it is in the investing markets at a discount (so the public market data is less useful). With this, the best way to analyze them is to look at the more prolific 3 + 4 letter .com domains to see what the fundamental market value of a 2 letter .com domains is (based on the principal of 26):
- Over all time, the average sale price of 4 letter .com domains is $2.16k (according to NameBio.com), projecting that the average price of a 2 letter .com should be $1.42M
- Over all time, the average sale price of 3 letter .com domains is $52.3k (according to NameBio.com), projecting that the average price of a 2 letter .com should be $1.36M
- In actuality, the average price of a 2 letter .com is only $577.1k (which is partly due to the lack of sales data for the last few years) - if there was more transparency in sale prices for recent 2 letter .com sales, I would expect the real average price to be around the projected $1.35M-$1.45M range.
For more data, here's some more data showing 2L .com sales over the last 5 years:
So the average price over the last 5 years is at the $1M mark (higher because this data is more recent) but it is still below the practical mark for these domains - a better way to access value is to look at the most fundamental piece of any scarce asset's value: Supply vs. Demand. In this, by definition there are only 676 two letter .com domains available for registration while currently 445 of these domains are owned by corporate entities who would be very unlikely to sell. See the list here: https://www.domainholdings.com/recent-sales/2-letter-com-owners/
So this means that there are 676-445=231 domains potentially available in the investor market but a lot of these have developed websites on them so the actual number of these domain owners that would sell would be a much smaller number.
Referencing this, we have 7 two letter .com domains available privately at this time. Doing the math, that represents over 1% of the total supply of 676 two letter .com domains & over 3% of the circulating supply of 231 not corporately owned - if you did the math of how many two letter .com domains are really publicly for sale, I would suspect these 7 to represent 10% or more of the actual market inventory. On top of that, the other 90% that might be 'for sale' are likely priced multiples higher. If interested to see our list, please contact us (although they may be sold by the time you read this).