March 6, 2017

Domain investors in China should buy Western Premium domains

written by

Joe Uddeme

Joe Uddeme

Domain investors in China should buy Western Premium domains

Domain Buying Guides

Name Experts provides premium
domain service to:

MAX
MAX
MAX
Hope Channel
MAX
MAX

Memo to Chinese domain name investors: NameExperts.com Director Joe Uddeme thinks you’re missing a trick if you limit your portfolio to local names.

 

Most Chinese investors tend to shy away from Western-type domain names as they don’t have meaning in mainland China – names that contain vowels and the letter “v” in particular.

Are they limiting their long-term growth potential? Some would say sticking with Chinese domains is a safer investment. As seasoned domain name brokers, however, we disagree. Here’s why…

Key Takeaways

  • New TLDs are not a good long-term play
  • Aftermarket prices for .com names remain high
  • Work with a broker if you need help with domain portfolio management

 

Background – understanding the Chinese domain name marketplace

For those of you that follow the domain investor market, specifically in China, you can see all types of newly minted investors looking for the next great domain name investment. Most Chinese investors are focused on the domain names that have relevance inside of mainland China.

The most popular investments in China are the short acronym domain, or simple numeric domain names as they translate to meaning to the Chinese culture. Some examples include the following (N = number; L = letter):

15.com (NN.com)

123.com (NNN.com)

TR.com (LL.com)

TYPL.com (LLLL.com)

6N.com (LN.com)

N6.com (NL.com

 

Chinese domain investment trends

As domain investments continue to increase in China, we are seeing many investors branching out into some of the newer GTLD extensions as alternative investments including; .club, .top, .wang.

They are acquiring these names for much lower costs than the typical .com investment. Is that a solid investment? We say: no.

The Chinese investor is savvy, but they are limiting their investment opportunity. In most instances, domain investors in China are only focused on these types of names because they create liquidity and are very attractive to the Chinese on a quick-flip model (check out our guide to domain name investing).

Additionally, the Chinese investor should look at the plethora of available .com domain name inventory on the aftermarket. Tons of fantastic domain inventory is readily available. Short, generic and easy to spell English words that are solid investments.

The saturation of the internet continues to precipitously grow year-over-year, with 78% of the Chinese population now online. When you do the math, it’s easy to see the longer-term opportunity.

Should you limit yourself as an investor? Not with the .com market  stronger than ever – with fantastic acquisition opportunities and names that ultimately have a global appeal and market reach.

We believe domain investors in China will start to acquire short, generic .com domains as trillions of dollars are available for private Chinese investors. Way back in 2017, George Kirikos had a fantastic post on Twitter, referencing 12,000 startups being created every day in China.

The domain investor continues to evolve and grow. Investors should look at the longer-term investment opportunity and acquire names that are globally acceptable and not limited to mainland China.

 

How a domain broker can help

Friends in the right places are always good to have, and most international domain brokers would gladly help Chinese companies and individuals who want to buy domain names. Domain brokers help buyers of any nationality to understand current market trends and navigate the sometimes complex world of domain acquisitions.

NameExperts.com is one of the world’s best-known brokerages, offering personalized boutique services that include domain name strategy, portfolio management, negotiation and stealth acquisitions.

Vibrant Chinese city at night

 

About the author

Joe Uddeme is Director and Principal of Name Experts, one of the world’s leading domain name brokerage services. He has overseen domain name sales and acquisitions totaling more than $150 million and is renowned worldwide as a go-to expert in buying and selling premium domains. He advises clients globally. Contact us at: [email protected]

Subscribe for More Domain Buying & Selling Advice

Related posts

Two women, standing, and a man, seated, stare at a laptop screen
Domain Name Investing: Invest in Premium Domain Names

There’s more to a premium domain name than a high price tag – a great one can accelerate business growth and promote long-term financial stability. NameExperts.com Director Joe Uddeme explains why landing a beauty could be essential for your company.   Here’s a question for every company to tackle. Small businesses and startups in particular need to consider if it is worth investing a quarter of their funding, say, on a premium domain name rather than better office facilities or company cars. The answer to that question is seldom simple. That’s because it is dependent on the kind of business the domain name will be used by, together with a number of other aspects. A domain name is critical because, quite simply, you can’t run a website without one. It will be the title of your site and email – and will play a crucial role in your marketing strategy once you’ve purchased it. In this guide, we’ll study everything there is to know about premium domain names so you can decide whether you should buy one for your business. Even if the name you want ends up costing $10,000 or more (LOTS more, in some cases), it might prove to be one of the best investments you make for your company.   When is a Domain Name Considered a Premium Domain? The process of buying domain names usually involves several disappointing moments. Such as when you first think of an especially excellent name… only to search for it and discover it was bought in 1999 and is currently up for sale for $100k. The crazy thing is, these domains do nothing special. There’s no rocket science involved with coming up with them – which is kind of the point. Premium domain names with a high price tag are familiar-sounding and catchy. Everyday words. It’s why cars.com sold for almost a billion dollars. A great domain name will help your site gain more traction much faster – and will prove to be one of your greatest investments if you have chosen wisely. This is the reason why a domain becomes a premium one.   The Precise Definition of a Domain Name The cost of a domain name will give away that it’s a premium one. Usually, a regular premium domain name is a domain name that is already owned by a registry or a person. If you want it, it’ll cost you. The name’s costs are exponentially higher than a typical domain and can vary from a few hundred dollars to millions. This is because of the perceived value which it might have for a company within a particular industry. In order for a name to achieve a high sale price, there has to be somebody who believes it is worth it. Until a domain name is sold, technically speaking it is worth virtually nothing. Try getting a million bucks for a domain name if the internet permanently goes down! A domain name is considered premium due to its brandability, keywords and overall desirability. All these are highly valuable for a business that wishes to branch out on the internet. Not every premium domain price is set by a person. On occasion, the relevant registry (such as .info or .design) sets the cost for this.   The Potential Problems With Choosing a Not-So-Premium Domain There are a few issues a company might run into if they don’t choose the best domain name they can. Here are the main difficulties: Trust and Branding Issues. Often, having a .com domain is the best way to show that a company is serious and trustworthy. A good deal of experts say to always go with .com, but there are lots of other options too, including .org, .co and .io. A trusted domain name consultant can guide you on the best choices here. Little Potential to Grow. When you’re stuck with a lemon, you can limit your business opportunities. Numerous businesses end up thriving after purchasing a premium domain name for around $500,000, particularly if it matches with their institution’s name. It Might Confuse the Client. If a business opts for an inferior domain extension, they may lose lots of customers. Some of these would-be visitors might believe the support is down or that the site doesn’t even exist because what they have actually done is visit domain.com rather than your site – domain.co. How a Premium Domain Name Can Help Your Website The fantastic thing about ultra-premium domain names is the fact that they are pretty much household names – so you don’t have to make additional investments in making them known. As a result: You’ll have to spend less money on internet PPC advertisements. Why? Because you are going to get organic visitors to your website as soon as you’ve launched it. You’ll enjoy better SEO and site rank – resulting in more traffic. Individuals are already searching for your website and will be glad to find it. There are more trust and authority involved using a premium domain name, which will make reliable companies link to your site. This can further boost SEO. A short, catchy name functions really well on social media and people will remember it. The domain will provide prospective clients with a strong indication about what they will find on your website, so you don’t have to invest money and time describing it to them. Simply speaking, it is much simpler to make a premium domain popular. You’ll have to devote a good deal less money on advertising it. Summing up If you’re doing business in a market where word of mouth is essential, than premium domains are definitely something to consider – whatever the cost. Not all small business owners and startups, however, should start with a premium domain name. A business can definitely be effective with a less-than-perfect domain name if it is catchy enough. If the domain name you’re considering matches your branding, sometimes that is all you’ll need. It can work well even if it doesn’t match your business’s name. If you can’t get the .com extension you want, it is possible to go with .co, .ai or many other top-level domains (TLDs). But when you start to hit it big, securing a premium domain name could be a very wise move – because there’s a high possibility it will pay off handsomely within the next few years.   About the author Joe Uddeme is Director and Principal of Name Experts, one of the world’s leading domain name brokerage services. He has overseen domain name sales and acquisitions totaling more than $150 million and is renowned worldwide as a go-to expert in buying and selling premium domains. Contact us at: [email protected]
Computer keyboard with large red return on investment button denoting the importance of accurate price evaluation in domain names
How to Value A Domain Name

Did you make a speculative investment in a domain name some years back and are now wondering what it’s worth? In this article, domain name specialist Joe Uddeme provides expert insight into how to accurately value what you have in your portfolio.   How to Value A Domain Name Valuations can be confusing whether you are the buyer or seller. “What’s my domain worth?” is a question that many owners ask themselves. “Why are domains so expensive?”, an intending buyer may ask after seeing the price of the asset they want. Utilizing an appraisal services tool is crucial to accurately assess the value of certain names for various purposes, such as buying, selling, or evaluating brand name changes. We will dive deep into domain valuation and the factors that affect the value of a domain, but first it’s helpful to understand why they cost money in the first place.   Key takeaways Domain name values rise and fall as with other asset classes Accurate domain name valuation ensures both buyers and sellers leave the negotiation table happy Understand what makes one domain name more valuable than the next Access evaluation tools to help you arrive at a fair price Understanding Domain Value Domain value is a crucial aspect of the online business world, and understanding it can help individuals and businesses make informed decisions about their digital assets. Remember, values could rise and fall according to market trends and the desirability of a name to a particular buyer at any point in time. Knowing the value of a name is essential for both buyers and sellers, as it ensures fair transactions and helps in strategizing future investments. In this section, we will delve into the concept of domain value, its importance, and the factors that influence it – as well as offer a complete review of the best-known domain appraisal services. What is a Domain Worth? Domain worth refers to the monetary value of a name. It’s an estimated amount that an asset could be sold for on the market. This estimated value is influenced by various factors, including the domain’s length, keywords, and extension. Domain worth is a critical factor in determining the value of a business, as a high domain worth can significantly enhance a business’s overall value. For instance, a memorable and relevant name can attract more traffic, improve brand recognition, and ultimately lead to higher revenue. Why Do Domain Names Cost Money? A domain name is an online property – and property is not free. They are scarce by design; once a person buys an asset, it belongs to them as long as they pay the renewal fees. Likewise, it costs money to maintain the vast computing infrastructure that powers the internet, and selling digital domains is a way for registrars to recoup their costs. Expertise in buying premium domains is crucial to ensure accurate appraisals and competitive pricing, helping buyers avoid over-payment. Why Would You Need To Value A Domain? It is important to have an estimate of what a name is worth, whether you are the buyer or seller for any potential sale. Understanding a domain’s worth ensures that a buyer won’t overpay for an asset and a seller won’t sell their domain for a price far below what they could have gotten from another acquisition partner. Domain name valuation helps buyers or sellers assess the worth of a domain and pay or receive a fair market price. What Makes An Asset Valuable? The Top-Level Domain (TLD) The TLD refers to the last segment of a domain name that comes after the “dot” symbol (.com, .net, .ai, .co, .xyz, etc.). It plays a big role in the value of your asset due to supply and demand insight and data. For instance, .COM is the most popular option for buyers, so domains with this TLD tend to be more expensive than others with less interest. Some other TLDs also have a reputation for being expensive because of a strong market, like .ai and .io – according to current data. Domain Length The number of characters of an asset also affects its value metrics. The rule of thumb is that the lesser the number of characters, the more valuable the asset. Number of Words Similarly to length, the number of words in a name affects its valuation. The lesser the number of words, the more upside an asset has. This happens because domains with one or two words are easier to remember and thus command more brand power. Age or Domain History How long a domain has been owned by someone else contributes to its value. The longer the period of ownership, the higher the chances of that domain being recognizable. So, domains owned for a long time tend to command higher prices than new or short-lived ones. Domain Popularity If a name is already in use, the volume of the traffic on the site using it contributes to its value. High-traffic domains are more expensive because the new owner can leverage the existing traffic to drive eyeballs to their own website. Likewise, if an existing asset has backlinks from other websites, it will command a higher price because backlinks improve search engine rankings and help generate organic traffic. Understanding the domain marketplace is crucial for accurately estimating values and optimizing URL investments. Availability of Alternative Domains Can the purchaser find a similar asset elsewhere? (for instance Trucks.com > Trucks.co or Trucks.net or the .org). If the buyer can’t find a similar name somewhere else, then they may be more willing to pay a higher amount for it. Market Interest and Characteristics Market interest and characteristics are two essential factors that influence the names. Internet market interest refers to the level of interest in a name, which can be driven by trends, industry relevance, and the popularity of certain keywords. Characteristics, on the other hand, refer to the attributes of the name, such as its number of characters, extension, and keyword density. A URL with high market demand and desirable characteristics can command a higher price. For example, short, memorable domain names with popular extensions like .com are often more valuable sales due to their high demand and ease of recall.   How To Determine A Domain’s Value There is no specific formula for this activity. However, there are some free tools and services to help you estimate the cost of a domain name. 1. Research Tools The first step in figuring out how much a name can sell for is checking out the rate of similar domain names. Thus, you can use a research tool to see what similar domain names are selling for and compare them to your own. This will help you select a fair market price. Some sites are free to use while others charge a fee. DN Journal is a good example of a platform that collates sales figures and displays them to readers for free. Namebio, much like DN Journal does a great job cataloging recent names with an easy to use scan tool. They offered a monthly service fee for multiple inquiries. Domain Name Wire is another free resource. You can find blog posts about notable domain sales to help you estimate what you can sell yours for. Godaddy is a great resource to see what names may be available. They also offer a fast transfer service. There are many others, but these a few good places to start. 2. Use An Appraisal Service A domain appraisal service estimates the market value of a name. They appraise a domain based on many factors, including popularity, search engine ranking, social media shares, TLD, and by comparing it to similar domains. These domain appraisal services platforms make it easy to get an educated answer on how much a domain is worth. A free valuation tool can give you an overview of the appraisal value, such as godaddy. 3. Find Out What Others Are Willing To Pay A more direct way to answer the question of “what is a domain worth?” is to understand the domain sales marketplace and see what others are willing to purchase it for. The easiest way to do this is to list your domain on a marketplace like Sedo and Afternic and see what offers you receive to purchase. Create cool landing pages to help drive leads. This data can help set better pricing. You can use the offers as the yardstick for valuing the domain. Combining AI and Human Expertise To accurately determine domain value, it’s essential to combine artificial intelligence (AI) and human expertise. AI searches can analyze vast amounts of data, including market trends, search volume, and similar domains, to provide an estimated value request. They are vast resources for information. These automated tools can quickly process information and identify patterns that might not be immediately apparent. However, human expertise is necessary to interpret the data, consider the nuances of the domain name, and provide a more accurate appraisal. Experienced domainers and brokers can offer insights that go beyond raw data, such as understanding the potential for future trends and the strategic value of a domain within a specific industry. How To Increase Your Domain’s Value There are several ways to boost the value of a domain, including: Search Engine Optimization (SEO) This refers to optimizing a web page such that it ranks high on search engines. You can do this by including relevant keywords in your niche and getting backlinks from other websites. If people can find your website on Google algorithms, they will click on it more often and give you higher conversions, which translates into a higher domain value when you analyze the data. Market Your Site You can advertise your website on appropriate venues like social media services, search engines, or even use free word of mouth for your Company. This lets people know you exist and will likely drive higher eyeballs to your domain, giving it a greater value. Availability of Other Domains People are less willing to pay a high price for a domain if they can get something similar for cheaper elsewhere, e.g., Cars.com > Cars.co. One way to avert this is to buy the keyword across multiple TLDs, e.g., Box.com, Box.org, Box.net, etc. This way, the intending buyer will have less leverage. Build An Online Presence You can create profiles on social media platforms to build an online presence. This gives your domain more brand power and, in turn, a higher evaluation figure. Types Of Domain Name Valuations There are three main types of domain name valuation: Retail Pricing These are domain names directly offered by the owners to end users with a clear use case. The end users already have something in mind to do with the domain, usually for a website, so are more willing to pay a higher sum than the estimates. Liquid Pricing This comes into play when domain names are being offloaded by an owner, court order, or a bankruptcy proceeding sales. The domains are typically sold as a group and are cheaper to buy because it is a fire sale. However, the chances of finding domains with liquid pricing estimates are slim compared to the others. Liquid pricing is usually between 20% to 30% of retail pricing. Investor Pricing This is when domain names are offered for sale by professional domain brokers or flippers. You can find these types in an auction where you will likely bid against other people to acquire a domain. Some people may exchange domains with other Internet portfolio investors or team up to acquire a single valuable name for their domain portfolio. Investor estimates pricing between 40% to 60% of retail pricing. Working with Domain Investors and Brokers Domain investors and brokers play a crucial role in the domain name market. They help individuals and businesses buy, sell, and appraise their names, leveraging their expertise to ensure fair and profitable transactions. Brokers, meanwhile, act as an expert go-between the buyer and seller of a domain name. Role of Domain Investors Domain investors are individuals or companies that buy and hold domain names with the intention of selling them at a profit. They often have a deep understanding of the domain name market and can provide valuable insights into the value of a domain name. Investors typically maintain a domain portfolio as part of their business, which includes a variety of domain names that they believe will appreciate in value over time. By analyzing market trends and leveraging their experience, domain investors can identify undervalued domains and acquire them at a lower cost, with the aim of selling them at a higher price in the future.   About the author Joe Uddeme is Director and Principal of NameExperts.com, one of the world’s leading domain name brokerage services. He has overseen domain name sales and acquisitions totaling more than $150 million and is renowned worldwide as a go-to expert in buying and selling premium domains. Contact us at: [email protected]
Default alt text
How To Choose a Business Name – An Expert Analysis

To make their first dollar, most businesses have to settle on a name for their organization. Here’s how to choose a business name that will last you well into the future.   Before you’ve hired the accountant, bought the office chair or spent 20 bucks on some gold-plated business cards, you need a name for your business. Get it right, and your business name will be an asset that will: Send out a clear message about your brand Be memorable – for all the right reasons Encourage customer loyalty Grow with you Get it wrong, and you’ll be stuck with a name that could cost thousands or even millions to fix. In this article, we’ll look at the elements of a great business name, the reasons why getting it right is worth so much effort, why buying a domain name for your new brand is essential – and more. There are even links to a few tools you can use that will help you get your business name deliberations off to a strong start. Why take my word for what makes a good business name? Because names have been my bread and butter for almost two decades. I help businesses buy premium domain names when they want to launch a new company or sub-brand. When you oversee domain name transactions that sometimes run into six and seven figures, you get to see first hand just how valuable a great name is. Key takeaways A great business name will be an asset for years to come Matching up your name, logo and brand identity requires serious attention Choose between catchy or quirky Make sure you can secure a domain name so your online customers can find you  

Why Work with Name Experts

Name Experts offers personalized domain brokerage services, assisting clients in buying or selling premium domain names with expert appraisal, negotiation, and complete transaction management while ensuring confidentiality.

Free Consultation

Some of our most
successful stealth acquisition and sales

Aid.com

Fit.com

Mine.com

GLD.com

Jeff.com

Fora.com

Nori.com

Secure.com

Guitar.com

F*ck.com

Radian.com

MetaData.com

Prize.com

Link.com

Loop.com

Programs.com

Claim.com

Quince.com

Hook.com

QXO.com

NQ.com

Rest.com

Humani.com

Max.com

Need help buying or selling premium domains?