Over the last few years, we have been witness to rise in popularity of the numeric domains. Numeric domain prices soared, and now some random three number domains are selling well over $50,000. Looking at domains that hold value and can be sold, as such we can qualify numeric domains with up to 5 numbers, more importantly with no other character in the domain name except numbers. Again, the most valuable ones are those with .COM domain, while any other domain extension can hold some, though lower value.
What are the reasons which caused numeric domain value to rise?
Greatest influence came from China, where a number of brands or products use numbers, so the counterpart numeric domains come naturally as perfect for them. Chinese numbers actually sound like words when pronounced. For example, letter 3 sounds much like the Chinese word for life and holds great value (Feng Shui).
Additionally, they are popular with young people, because they are short, look cool and are very easy to use on any kind of device. No one likes to waste time typing a three word 20 letter website address.
High proficiency to make profit from an item or a property (in this case a numeric domain name) increases its value. Large percent of numeric domain investors are doing so in order to gain profit from a later sale. Domain names are a means of investing for the wealthy, while they more or less avoid their country “tax radar”.
Undisclosed transactions are another appealing feature of numeric domain trade, where both seller and investor have no need to disclose details about the transaction. Most Chinese numeric domain investors are satisfied with average 20% profit from their domain sale, possibly to another Chinese investor.
Rules used to determine numeric domain value
Shorter is better – Just like any other kind of domain name, a shorter one will hold greater value. However, this rule is broken for some numeric domain names with specific structure – the domains that hold higher phonetic or number pattern value.
Number pairs – While a number may represent a certain symbol, any number repeated hold a much higher value, being a synonym to Chinese traditional ornament “double happiness” or “double happy” which is commonly used as a decoration and symbol of marriage.
Number sequence – three and up to 5 numbers in a sequence (123, 1234, 12345 …) also hold a high value being very memorable or a perfect match for a product or a brand.
Now let’s talk a bit about numbers. The number 8 is one of the most desirable in numeric domain names. In Chinese, it defines wealth and domains containing number 8 are priced higher than others. Numbers 6 and 9 are also desirable.
Number 4 is the synonym to the Chinese word for death, and there is a lot of superstition surrounding this number. This means that a numeric domain with number 4 is not very likely to be bought by Asian investor, so that kind of domain holds underwhelming domain value.
For any kind of numeric domain with a 0 at the end is desirable as it is making that domain name a round number and very memorable. On the other hand, domains starting with 0 are not very desirable leading to this kind of domains having lower than average value.
Meaning of the domain when pronounced has a very high positive or negative impact on the numeric domain value. For example, 5 1 8 numbers “translate” into “I” “want” “wealth” but when pronounced they sound like “I want prosperity”. The 518 .COM is currently held by a casino. Related to the given subject, some underlying cultural factors may introduce exceptions, therefore be sure to make a thorough research on a certain numeric domain name.