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

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

Professional looking man (on right) and woman (on left) studying computer as if in conversation about domain names
The 3 Types of Domain Names and Common Domain Extensions

When you buy a domain name, you purchase a piece of digital real estate. But what, exactly, are you getting for your money? NameExperts.com Director Joe Uddeme unravels the elements of a domain name – so you’ll have a clearer understanding of the architecture behind them.   A domain name is an address you type into your web browser whenever you want to visit a website. It is arguably one of the most important assets any business can own. While ‘domain name’ is an all-encompassing term, a domain is actually made up of multiple parts. Understanding these elements can give you a clearer picture of the domain name investing world and ensure you’re well-informed before buying a domain name or asking a skilled domain broker to negotiate the purchase of one on your behalf. Key Takeaways Domain names – an introduction The 3 types of domain name Domain TLDs for beginners Why not check out our article about why choosing a .com domain name still makes sense for most businesses? What are domains? A domain name is a human-readable address that directs you to a particular website available on the internet. It’s akin to the address for your official residence or workplace. When someone wants to visit you, they come to your address. Similarly, when someone wants to visit a website, they type in the domain address in their web browser. Any domain name has four main components; Domain name: The name of the domain itself. Top-Level domain (TLD): The suffix that appears after the domain name, e.g., .COM and .NET. Subdomain: A domain that is part of another primary domain. It is also known as a third-level domain. Protocol: The system that specifies how information from the domain is transferred to your web browser. It is either HTTP (insecure) or HTTPS (secure). Take https://www.nameexperts.com/, for example. NameExperts is the domain name .COM is the top-level domain WWW is the subdomain HTTPS is the protocol The 3 Types of Domain Names There are three main types of domains, including: 1. Top-Level Domains A top-level domain (TLD) is the final section of a domain name. It is the last segment of text appearing after the dot symbol. For example, in Google.com, .COM is the top-level domain. Ever since the world wide web’s inception, .COM has been the most common top-level domain. It was originally used to designate commercial businesses but has become the de-facto TLD for most websites. Another popular TLD is .NET. It was initially meant for internet service providers and networks but is now available to anyone who wants it. Because NET signifies network and technology, this is an ideal option for technology companies. Yet another well-known TLD is .ORG, which was originally used to designate not-for-profit organizations. Till today, most people associate this TLD with non-profit organizations and social causes rather than commercial businesses. The .ai TLD is another popular one today – especially for tech firms. There are two main types of top-level domains; Generic TLD A generic top-level domain refers to domain name endings with three or more characters, the type that you’d most likely recognize. .COM, .NET, .ORG, .INFO, and other common domain endings fall under this category. Before 2011, there were barely two dozen domain extensions classified as generic. That year, the Internet Corporation for Assigned Names and Numbers (ICANN) expanded the number of generic domain extensions from 22 to over 1,200, opening up more opportunities for individuals and businesses to acquire domain names. Country-Code TLD As the name implies, these are domain extensions associated with specific countries. ICANN assigns country domain endings to each formally recognized nation and sovereign state, and these nations collect a royalty on every sale of their assigned TLD. For example, Tuvalu, a small island nation, earns 1/12th of its annual income from its .TV domain extension. Other popular examples of country domain endings include .US for the United States of America .AU for Australia .DE for Germany .CA for Canada .CC for Cocos Islands .AE for the United Arab Emirates (UAE), etc. 2. Second-Level Domains A second-level domain is directly below a top-level domain in the domain hierarchy. It is the part of the domain name that comes right before the top-level domain. For example, in NameExperts.com, NameExperts is the second-level domain. The second-level domain is usually a combination of words describing the business or service of the domain name owner – and it pays to match this to the name of your business whenever possible to strengthen your brand. In the above example, NameExperts describes the business of a professional domain name broker that helps customers to acquire valuable domains. A second-level domain can include letters, numbers, and hyphens. Symbols are not allowed. 3. Third-Level Domains The third-level domain, or subdomain, is the part of the URL that comes before the second-level domain. The most common subdomain is www., which refers to the world wide web. Third-level domains are not mandatory, so you can have a fully functional domain name without the www part. Some website owners create third-level domains to represent a different section of their website. Examples include: Shop.mywebsite.com refers to the e-commerce section of a website. Blog.mywebsite.com refers to a blog attached to the website. Support.mywebsite.com leads to the customer support section of a website. Understanding Domain TLDs A domain name is the most important property for anyone who conducts business online. Hence, it’s crucial to understand what they are and the different types of domain name extensions to use for a website. The information above should help you figure out how to structure your domain, but if you need help, we’re experts at domain selection and helping you buy the perfect domain.     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 the NameExperts team at: [email protected]

Slightly ajar laptop with blue-green haze
Are Buying Premium Domains Worth Your Money?

Some things are hard to put a value on. Did Apple need a multi-billion dollar ‘infinite loop’ HQ – or did they get something much more than a fancy address? NameExperts.com Director Joe Uddeme explains how the true value of a premium domain name sometimes runs much deeper than you think.   You are likely searching around the web right now for “domain premium names” or some mash-up of those three words, wondering which ones you’re likely to buy for yourself or your company. You’ve already weighed up the pros and cons of choosing a premium domain name over a regular $20 one. First up, well done. You’ve recognised that if you want to buy a great domain name, you’re going to have to pay for it. A premium domain might only cost a few hundred dollars (though it could cost a lot more), but you have at least figured out that it may have a certain value. A domain which has what we call ‘jurisdiction’ is one that already performs well on search engines. A number of the critical indicators that prove that your domain name has jurisdiction are its domain authority, traffic, and links. Usually, premium domains come with an existing domain authority that will enhance your website’s rank with search engines. Here’s why buying a good one can be well worth it. Key Takeaways Save money on advertising with a strong premium domain Expect an instant flow of traffic Get help if you’re not sure where to begin   You Don’t Need to Spend Too Much on Advertising Most of us recognize that sites with a fantastic ranking on Google are advantageous for their owners. When the keywords being searched are a specific match to keywords in your domain name, odds are your site will rank quite high on search engines – especially if the content is good and has been optimized for SEO. Many people are harnessing the net by producing multiple domain names in the hope their company will enjoy more exposure. However, the majority of these additional domains provide very little value as most are unsecured. They can also be harmful. Domains which have a recognizable extension like .com or even .net are more reliable and will enhance your website’s click-through rate.   Clients Will Find You Quicker Domain names that are brief and contain keywords are in high demand since they help your clients to locate you quickly. They’re also more memorable. It is far better to invest in a premium domain name that’s brief, descriptive and matches what clients are looking for. Every website owner will tell you they spend half their life trying to attract new clients to their website. The battle can be won before it’s even started if you choose the right premium domain name.   Expert Guidance for New Domain Name Buyers Experienced domain name brokerages like NameExperts.com are popular among business owners who don’t have the necessary experience or knowledge to confidently make decisions about their domain name strategy. As well as offering expert impartial advice, we can track down owners of off-market names and conduct all negotiations on your behalf. Our clients – which include Tripadvisor, Monday.com and Mark Cuban – regularly tell us our services save them time and money.   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]    

Close up of a man in white shirt at a laptop (only arms seen), as if he is searching for info about domain names
What Is A Domain Name and Why Do I Need One?

Domain names are one of the foundations of every global brand – they’re your calling card online. In this post, domain name expert Joe Uddeme explains how they work and how to secure the right one for your business.   You probably know more domain names than phone numbers these days. Think of all the news sites you know the address of – plus Amazon, Apple and all those big brands whose website URLs you can guess because nine times out of ten, it is their brand name + .com. While the world of domain names is easy and familiar at face value, behind the scenes, there’s a lot more going on. If you’re getting ready to buy a premium domain name – one costing in the thousands that will be memorable and potentially valuable for a business in the long term – you need to have a solid grasp of what you’re getting into. To stop you from confusing domain names with websites or even website hosting services, this post is a great place to start. Key Takeaways What is a domain name How does a domain name work How to choose the right name for your business Securing a name that will keep your business on track   What Is A Domain Name? To put it simply, a domain name is the address of your website. It is the phrase or word that you will type into your URL bar of your browser to find your website. For example, our website is https://nameexperts.com/ You can purchase domain names through a domain registrar, through a hosting provider, or let a domain name broker help you. What is the DNS? You can’t really answer the question, “What is a domain name?” without addressing DNS. Domain names are part of a large network called the Domain Name System (DNS) and it is managed by the Internet Corporation for Assigned Names and Numbers (ICANN). The ICANN is a non-profit organization responsible for management and maintenance of the DNS, as well as regulating domain registrars. How Does the DNS Work? When you type a domain name into your browser, your computer will check if you’ve previously looked at that domain. If not, then your browser will contact the local DNS server to pull it up. Your local DNS server breaks down the domain name into sections. We’ll use our name again as an example. There are three parts to nameexperts.com – www., nameexperts, and .com. The .com is known as a top level domain (TLD) and the local DNS server will search for this section first, and then serves to find all the details of your domain name and send that information back to the browser you’re using. There are obviously a lot more technical steps to it, but that’s the basics of how the DNS works. Let’s talk more about what you really need to know – what types of domain name extensions are available.   Different Types of Domain Name Extensions All domain names are made up of a website name (nameexperts), and a top level domain (.com). Though the extensions can vary, we think it is useful to know the differences between the types of top-level domains available so that when it’s time to choose your domain name, you choose the right one. The two types we are going to talk about today are Generic Top-Level Domains (gTLDs) and Sponsored Top-Level Domains (sTLDs). Generic Top-Level Domains (gTLDs) Normally, the best course of action is to choose a reputable TLD like .com, .net, or .org. But because these are so popular, there are millions of domain names that have been registered to date. So the name you want might be taken (read our post: “How to buy a domain owned by someone else”) – or it may be hard to find a name that works. Here are some of the most generic TLDs: .com (commercial) .info (information) .org (organizational) .net (network) .biz (business) Sponsored Top-Level Domains (rTLDs) In addition to gTLDs, there are also some top level domains that are sponsored by organizations or agencies for very specific and often exclusive use. Here are some examples you’ll recognize: .gov (used by the US government) .edu (used by educational institutions) .int (used by international organizations) .mil (limited to US military entities only) Subdomains We thought we should also mention subdomains. A subdomain is also known as a third level domain and is an extra part of a domain name. They are viewed as separate websites by the search engines, so creating subdomains can help improve your site’s SEO. Specifically, a good time to use a subdomain is for a blog. It might look like https://blog.nameexperts.com.   How To Choose The Right Domain Name Now that we’ve answered what is a domain name, we want to help you choose a strong domain name that accurately reflects your business. Ideally, you want to be easy for your target market to remember and be something that is timeless. Your domain name broker can help you find the perfect domain name and get you started with the process that goes along with it. Begin by doing some research on keywords that are relevant for your business. Whether it’s the name of your business or another keyword that relates to your business and you want to rank for it, this type of domain name will help improve your site’s SEO (search engine optimization). Another tip is to keep your domain short and memorable. You want it to stand out but be easy to remember – try to keep it to three words or less. You also want to make sure you avoid numbers and hyphens. People won’t remember where they go and they might mistype. Which leads us into another tip for choosing your domain name, make sure it is easy to spell. Shy away from words with multiple spelling variations or one that might be difficult to pronounce. Think long term. You want a domain name that supports the growth of your business and will last for years to come. Changing your domain name later can really hurt your business.   Working With A Domain Name Broker – The Easy Solution Getting your domain name right is crucial for your business or organization. It can help define your brand and form a lasting impression on your audience. Do your research, and then if you’re serious about securing a seemingly unavailable name, reach out to a domain broker. We can help you buy and register a name – even if it belongs to someone else. We can also advise on strong alternative names for your business. NameExperts.com has a selection of highly commercial names available for sale at any time. At the time of writing, these included eight.com, proud.com, fate.com and nickel.com.   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]  

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.

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?