IT.COM

opinion Whatever You Do, Don't Forget the End User

Spaceship Spaceship
This time last year, I would have never considered buying six-, seven- or even eight- number domain names. I wouldn't have considered buying a four-letter .COM with a "z" or a "q" in it either. I wouldn't have even considered buying four letter .NET domain names.

Yes, the domain industry is going through a rapid change thanks mainly to Chinese investors. As such, the hottest categories seem to be four-letter .COM domains, five-letter .COM's, four-letter .NET's, and numerical domains from four- to six- characters in length. The letters that didn't mean anything suddenly mean everything.

These investments are making rapid gains. For example, I purchased some four-letter .COM domains from this forum around two weeks ago. I've sold a couple of those domains for double the price I paid for them. I can't think of another investment area in which you can double your money within 14 days, and I hope these days continue for a long time to come.

However, I want to remind you all that one-word .COM's, two-word .COM's, and highly-searched phrases can still have their worth. They're not "en vogue" at the moment, but that doesn't mean they don't have value.

These are solid investments that have had value for years, and I think they will have value for years to come. This value doesn't come from reselling them to an investor inside a couple of weeks, but from the end users - those who will pay the most to get a good domain name.

Although China continues to dominate the headlines, there is a constant in the background: end users looking to upgrade their domains or looking at ways to improve their online marketing potential. DomainNameWire.com's end user report is full of companies that have made investments in new domains for a number of different reasons. Just today, Mike Berkens announced the sale of CompleteHomeGuide.com for $6,750 - I'm fairly certain that wasn't a Chinese investment.

Whilst these sales may not have the attractiveness of a headline in which Frank Schilling makes $3,000,000 from a portfolio of four-letter .COM's, they're still sales nonetheless.

So whilst you're searching your drop lists in hopes of finding the next great investment(s) in short domains or numerical domains, why not take a look for one- or two- word domains; you're likely to have less competition on this type of auction whilst everyone's attention is focused on the East.
 
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The views expressed on this page by users and staff are their own, not those of NamePros.
great point! I've decided to divide my focus between the immediate Chinese demand and highly keyword .com's.
thanks for writing this up!
 
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Thanks James. Great post.
 
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Awesome. Great post thank you
 
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This time last year, I would have never considered buying six, seven or even eight number domain names. I wouldn't have considered buying a four-letter .COM with a "z" or a "q" in it. I wouldn't have considered buying four letter .NET domain names.

Well said. However, the domain industry hasn't been transformed overnight from generic domains to numerics and letters. It's a bit scary seeing today NameBio's report showing sales on Nov-15 where at least, at the first glance, 90% of sales are represented by L & N names.
Guys, if you're short of liquidity so much, check what Forex (or spread betting in UK) is. 100% in hours isn't something abnormal there. But "FX medal" has both sides - profits and loses, the same fast. Or have fun in a casino in a weekend.

Saying seriously, the demand in premium numerics & letters is obvious now, but I wouldn't forget about the mainstream of domain investing which is generic names. They have value and will have value. Find your niche (sectoral or geographical). Consider acquisition of a generic $1,5k to get $15k in 2-5 years because buying LLLL for $1,500 now isn't likely to bring you to $15,000 in visible future. Do you want to earn on domains 10 or 15% and trade like stocks? - go for stocks, leveraged CFDs on stocks, commodities, metals. There are so many liquid assets.

The pace of change of assets' value and lack of diversifications is always frightening, regardless a sector of investments.

Morgan Linton made an interesting comment on premium numerics & letters: http://morganlinton.com/there-could...omainers-jumping-on-the-numeric-domain-train/

Good luck for everyone!
~AW
 
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Wait...you're saying there's a world outside the 'CHIPS' ?

That investors actually sell domains to private buyers and companies?

I am floored.

</sarcasm>

Even with the LLLL .com etc. markets on fire thanks to the unexpected value increase of QZJX domains, the rest of the 'lowly' letters are perfectly fine for Westerners.

As long as you're willing to get bombarded day in, day out from Chinese spammers for your truly premium LLLL .com's, I'd say let them have the QZJX now and hold your other assets long term.
 
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@Acroplex - it seems many have forgotten the world outside CHIPs ;)
 
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I'm caching in the chips as we speak. The difference: I bought at $10 - $200 and have sold for up to $12.5k. No, I won't be buying more chips at current selling prices. The primary domainer's motto is, buy low, sell high.
 
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I like the title.
At the end it's the end user who is financing the entire domain industry.
Equal if the 'end user' is a company which uses the domain name for a website or a domainer who simply 'keeps the domain alive' ;)
 
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It makes for less competition for great one word,two word domains because everyone else is bidding on chipsB-)
 
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Poor endusers. They have become the forgotten breed in all this hazzle-dazzle.
 
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end users looking to upgrade their domains, or looking at ways to improve their online marketing potential

:laugh:

Yep! Offer them something they will value that will help THEM.

Good article James. Thank you.

-Omar
 
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I strongly believe in 2 word & 3 word .com domains. But even this rapid change, Its still hard to get good names from drops. Looks like people haven't forget the past
 
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Fish 'N Chips.. yes please!
 
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For my part, I still buy domains of one word and two words, specially expired.
There's a lot less competition as mentioned James.
 
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For my part, I still buy domains of one word and two words, specially expired.
There's a lot less competition as mentioned James.

Hi ! any advice on how to get good expired domains ? Do you use dropcatch, godaddy... or do you have your own algorithms for finding them ??
 
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End user, end user, end user! I won't forget :laugh:
Excellent post James!
 
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I was say:ng this same thing today in the chat section that you almost all the time cant go wrong with normal dictionary.coms.

Great post as always James :)
 
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