Why are 3 letter domain names so freakin' expensive?

Why are 3 letter domain names so freakin' expensive

ie) www.xts.com

I some go for $800+ each...

That's with no traffic or revenue currently...

~Sheen91

 

As with any other market, prices are affected by supply and demand. 3 letter domain names are very low in supply yet there are many people who want them.

The more there are on the demand side in relation to the limited amount on the supply side the higher the price will be for any commodity.

Keep in mind that this doesnt necessarily mean that there is any intrinsic value in the commodity in question.

This is true of coins, comic books, beans, corn, gasoline, etc etc and even domain names

 

Going on from kentuckyslone slightly why do so many people want them? It's because of their memorability, marketability, speed and ease of type - people are lazy so the shorter the URL the better!

 

To me i think this is because of the keyword density .... among the search engines..

 

Actually, its because of quantity.

You can get 4 and higher letter domains very much and easily in domain market but 3 letter domains are very rare to get.

As i read in economics, " price increases and decreases according to the quantity and quality of the product."

 

basically, they are expensive because they are getting rare nowadays. Try on 4 letters domain names.

 

You could have found more correct answers on google with far less effort.
Or are you postbuilding?

 

I believe my answer and xerics are correct. It all boils down to supply and demand. Simple economics

 

What about 4 letter domain names???

~Sheen91

 

What about two letter and one alpha-numeric character domain names?

 

I don't think you can even register a two letter domain anymore.

Three letter domains are so expensive because they are all taken and everybody wants one.

 

It's like land...they are all taken and they aren't making anymore.

 

It is the same no matter how many letters are in the domain. Its just that as you add another letter the "supply" of domain names increases.

Of course there are other factors that affect the value of a domain name. The concept of supply and demand is a generalization.

For example, god.com or cat.com would be worth much more than xyb.com regardless of the number of letters in the domain.

 

Simply because there are so few of them. Thats all there really is to it.

 

they are easy to remember as well