Chinese Domain Market Newsletter

Isn't the choice obvious? I have a credit card, which rewards me with points (dollars) whenever I use the card to purchase things. At the end of each month, I can pay off the full amount and enjoy the 'free' money the bank has given back to me, or I can pay just a small amount but be burdened by the 20% interest. The decision seems easy but most people would choose the expensive interest option. Maybe that's why smart investors try to go against the crowd because they know the majority are often wrong. Here's the post.

August 22, 2016 (Mon)

Eleven tips for Chinese domain investors

Why is that Chinese domain forums are not active in discussions? Or is it just because I have not found the right one? For example, yesterday I came across an interesting thread on the long-running forum. The original poster, an apparently experienced investor who joined the forum ten years ago, presented eleven points essential for domain investment.

The content would immediately trigger a lively discussion if it were posted on an English forum such as Namepros. But, in China it's different. Seven comments have been posted, but none of them carry more than ten characters -- meaning they have no value at all. Nevertheless, I think the content is good and so I want to share with you, as follows;

Avoid registration of low quality extensions, which includes net, org, info, biz, cc, co, hk, and tw.

Avoid registration of expensive extensions, which includes org, info, biz, cc, co, hk, and tw.

Avoid registration of domain names with no end user value, which includes Chinese IDN, 6N, letters mixed with numbers, 3-pin and 4-pin, even if they are on the .com extension. Alibaba is the only company able to spend tens of million dollars to promote its 4-pin name.

Are end users of your domain name inside or outside China? Domain names of 2-pin are limited to Chinese communities but single-word domain names are accepted all over the world.

If a domain name has daily visitors, parking is recommended so that you can make some money. A for-sale landing page just wastes all the traffic.

Avoid impulsive registering of domain names and be prepared to wait for 2 or 3 years to see whether it is a good name.

Short domain names have investment values. They are limited in quantity and easy to input, helping end users to build brands. Most Chinese buyers like short domain names.

The purpose of a domain name is getting sold. The more it is liked, the more it is visited, and its price will rise. Invest and be willing to wait for the harvest time to come.

There are only two ways to make money: small-margin-high-volume or high-margin-low-volume. Currently, the first option is not working, and the only option is the high-margin-low-volume approach.

The quality of the name and the quality of the extension in a domain name are the two major factors that determine the investment risk and return. For example, say there are three investors: investor A focuses on .com, investor B on .net, and investor C on .org. After several years, they all are likely to have some returns. But, investor A's domain names will receive higher offers.

International domain names are cheapest to acquire outside China and Chinese domain names are cheapest to acquired inside China. Opportunities can be found inside and outside China.

Overall, I like the arguments but there are few points which I don't agree. For example, I think short 3-pin names are fine and in fact there are many Chinese companies using such names. Also, LLLN (where LLL is a single word) are affordable and can be developed by end users as unique brands.

The original text can be found at