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

Close up image of a person at a laptop as they investigate a domain name
What is Domain Name Escrow & How Does it Work?

Escrow is important when buying domain names, especially those of high value. Domain name expert Joe Uddeme explains how domain name escrow works – and why you should use a domain escrow 3rd-party when making highly-priced acquisitions.   What is Domain Name Escrow? Domain name escrow is a specialized service designed to protect both buyers and sellers during domain name transactions. In this process, a neutral third-party agent holds the payment and domain information until all conditions of the transaction are met. This setup ensures that the buyer receives the domain name and the seller gets their payment, significantly reducing the risk of fraud and deception. By using domain name escrow services, both parties can enjoy a secure and efficient transfer of domain ownership, providing peace of mind throughout the transaction. A domain name consulting service can help make the process much easier. What Is Escrow? Escrow is an arrangement in which a neutral third party temporarily holds money meant for a purchase until specific conditions are met. The money will only be transferred to the intended recipient when the conditions are met. If the conditions are not fulfilled, the money will go back to the buyer. In domain name and other transactions, the escrow process often involves a lawyer managing legal documents, ensuring compliance with laws, and securely holding the assets and money in a trust account until the terms of the agreement are fulfilled. What Can Escrow Be Used For & Why Escrow is common in transactions where a significant amount of money is involved, e.g., real estate. It is necessary to protect the buyer from losing money in case the seller does not fulfill the terms of the deal. Domain transactions can be pricey, which makes escrow and other services necessary just like with real estate. After all, domain names are online real estate. Escrow protects against: Sellers refusing to deliver a domain despite agreeing to do so. Buyers refusing to pay for a domain despite an agreement to buy it. Payment being made – but the domain not being transferred to the buyer. Secure payment is crucial in domain name transactions, and escrow services ensure that the financial exchange is safe and protected. In short, escrow ensures that both parties in a deal stick to their agreed terms. It is a mediator of the transaction and refuses to complete it until both parties act in good faith. How Does Escrow Work? 1. Agreement on price and deal The buyer and the seller negotiate and agree on how much is to be paid for a domain name or group of domain names. They also negotiate important factors like the date of payment, method of payment, and what currency to use. 2. Buyer places agreement with an escrow company With the deal terms drawn out, the buyer finds an escrow provider and deposits the payment with an escrow agent. Once the payment goes through, the buyer pays escrow company will notify the seller and tell them to transfer ownership of the domain name related to the escrow transaction. 3. Domain Name Is Transferred The seller will transfer the domain name to the buyer. The wire transfer procedure varies depending on the domain registrar, but both parties will work together to ensure a smooth transfer. It is crucial to involve legal counsel in domain transfers to secure the transaction and ensure compliance with legal requirements. 4. Domain Transfer Is Confirmed After the domain is transferred, the buyer will notify the seller and agree with the escrow company that the seller has fulfilled their part of the deal. 5. Payment Given To Seller With the domain transfer confirmed, the escrow company completes the escrow transaction by using a money order and sending the money deposited by the buyer to the seller. What fees are associated with using an escrow service? The escrow usually charges a commission on the value of the deal. Some may also charge a flat fee in addition to a commission. The exact commission may vary depending on the deal volume. Benefits of Using Escrow For Buyers and Sellers The benefits of using escrow for domain names include: Security: The escrow holds the money until all deal terms are fulfilled, so there are little chances of the buyer losing their money without getting the intended domain name. The buyer also feels more secure dealing with a trusted escrow company than with a stranger over the web. Additionally, escrow services safeguard domain transactions by holding funds and domain holder information, minimizing the risk of fraud. Assurance: The buyer is assured that they will get the domain they want, and the seller is assured of payment once the domain transfer is confirmed. Customer support: Escrow services usually offer customer support and can guide the buyer throughout the process of acquiring a domain name. Choosing the Right Escrow Services Selecting the right 3rd-party escrow provider for domain name transactions is crucial for a smooth and secure process. Start by looking for a reputable and licensed escrow company with a proven track record in handling domain name transactions. Evaluate their fees and payment terms to ensure they fit within your budget. Additionally, consider the quality of their customer service and support, as this can be invaluable if any issues arise during the transaction. A reliable escrow provider should offer a secure and transparent process to deposit funds, with clear contractual obligations and a well-defined escrow agreement. Research the company’s reputation online and read reviews from previous clients to ensure you are working with a trustworthy escrow company. Domain Name Transfer and Intellectual Property Transferring ownership of a domain name involves several steps and can be particularly complex when intellectual property rights are involved. A domain name can be considered intellectual property if it is trademarked, which can impact its value and transferability. Before proceeding with a domain name transfer, it is essential to conduct a clearance search to ensure the domain name does not infringe on any existing trademarks. Utilizing a domain name escrow provider can facilitate this process by ensuring that both parties fulfill their contractual obligations and that the domain name is transferred securely. This helps protect best interests of the buyer and the seller, ensuring a smooth and legally compliant transfer of the domain name. Alternatives To Using Escrow Attorney A licensed attorney can draft a sales contract that is legally binding for buyer and seller. If any party breaks the contract, they can be sued for damages in court. The attorney can also act as an escrow organization and only transfer money from the buyer to the seller if the terms of the contract are fulfilled. An attorney is crucial in selling domain names to ensure all legal aspects are covered, and the transaction is secure. Domain marketplace There are many marketplaces where you can acquire domain names. Here, the marketplace acts as a custodian of the domain and only the seller transfers it to the buyer after payment is confirmed, which is then given to the seller. Best Domain Name Escrow Services Escrow.com Escrow.com is the world’s largest online escrow service, and it has specific features for domain sales. The buyer can initiate the escrow request and provide the seller’s contact information for Escrow.com to get in touch. The buyer transfers the agreed sum to Escrow.com, and it is only when they confirm the domain has been successfully transferred that Escrow.com will disburse the money to the seller. Escrow.com charges 3.25% for deals between $0 and $5,000; 0.89% for deals between $5,001 and $25,000; and $162.5 + 0.25% for deals over $25,001. Sedo Domain Transfer Service Sedo is a popular domain name and website marketplace, especially useful for those looking to buy or sell domain names. Its domain transfer service puts it as a middleman between the buyer and the seller. Sedo receives the payment from the buyer and the domain name from the seller. When both ends are confirmed, Sedo transfers the domain to the buyer and the buyer sends the money to the seller. This service incurs a 3% fee on the domain purchase price, with a minimum of $60. Afternic Afternic is another popular domain name marketplace focused on high-value domains. It offers an escrow service to protect both the buyer and the seller. Afternic holds the agreed amount and only disburses it to the former owner or seller when the buyer has confirmed receipt of the domain. If either party breaks the deal terms, the sale will be canceled and the money given back to the buyer minus the escrow fee. The drawback here is that Afternic doesn’t charge escrow fees separately. It takes a 20% fee, which includes both sales and escrow commissions on all domains listed on its platform. Using an Escrow Service It is necessary to use an escrow service if you are paying a significant amount for a domain name and it helps protect you and the seller. If you need guidance in the domain buying process, including escrow, contact us for help. We have negotiated over $150 million in domain name sales and have over a decade of experience in domain name buying and transfers.   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]

Family of people of various ages crowded around a computer as if investigating domain name services online.
What Is the GoDaddy Domain Broker Service, and Is it Worth It?

Everybody’s heard of GoDaddy, whose services include quick, cheap registration of available domain names. In this post, NameExperts.com Director Joe Uddeme explores their other services – and whether they’re the right option for premium domain name buyers.   GoDaddy is the world’s largest domain registrar, with over 90 million domain names registered and counting. Thanks to never-ending marketing, the average person likely thinks of GoDaddy when they want to buy a new domain. It’s common for people to visit GoDaddy, type the domain they want to buy, and see that someone else has already taken it. But GoDaddy doesn’t leave the user hanging– it suggests an alternative domain name or advertises its domain broker service, as seen in the image below:

Rear-view close-up shot of a woman using a laptop to illustrate article about buying a .org domain name
Why You Should Buy a .org Domain and How to Get One

The .com domain name might still be king, but .org can be a perfectly good alternative in some circumstances. Domain name expert Joe Uddeme explains when and why.   Why buy a .org domain? Why not? If you’ve been contemplating buying a domain and figured that all the alternatives to a .com were a dud, then a .org domain name is the exception. A .org domain imbues a site with immediate confidence and credibility. Your website visitors infer that you aren’t only interested in earning money but are dedicated to making this planet a better place, too. These domains are identical to other domains in most aspects but come with the extra bonus of perceived authenticity among your customers. Key Takeaways Why the .org suggests authority Understand the rules about owning a .org When a .org makes sense   What is a .org domain name? .org domain names were among the first top-level domain names. This means that they were among the first options available when people started picking a domain name. As a result, the .org domain extension is well known – and websites with that expansion are often viewed as authority websites. As they have a certain gravitas and longevity, they are often utilized as a choice alternative to the popular (but exceptionally competitive) .com domain name extension. Who can use a .org domain? If you want to create a community website for your college, gym or cultural establishment, then a .org domain name is going to be your very best choice. It is both fitting and correct – and will suggest to visitors that they have arrived at the official site. Anyone can now choose a .org domain name. You don’t need to submit any documentation or any other evidence that you’re a nonprofit or a charity. The procedure for registering for a .org domain name is straightforward and hassle-free. Commercial companies can just as readily secure .org domain names as official bodies, charities and other organizations can. From a business point of view, adding a .org may help ensure your trademark and brand are well shielded. The same may be true of other TLDs, such as .io or .ai.   Why choose a .org domain name? If you’ve been contemplating registering a domain and can’t get the .com name you want, its .org sister may be the way forward. It grants your site instant authenticity and is an extremely popular and identifiable domain extension. It’s ideal as a home for a charitable or community organization – and can be a terrific alternative to the .com domains. It works well for schools, charities, hospitals and so on, but can just as easily work for your own private use or a small business. If you need help purchasing a .org domain name or would like to inquire about a domain name that is already taken, the brokers at NameExperts can help guide you through the process. We’re particularly good to have around when it comes to negotiation work and have helped everyone from Mark Cuban to Tripadvisor to secure powerful domain names. 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?