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Domain Investing In the Era of Mobile

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Domain investing has been existed for many years and the investing mode has been changing in the way most people do not realize.

Some people stated that in this mobile era, domain names are no longer important at all. The fact, however, is that most kinds of domain names’ market prices are rising a lot.

For today, I am not going to analyze PC era or mobile era. I am not going to discuss those questions about whether domain name is useful or is domain name worth investing. I want to state what domain investors are doing nowadays.

Domain investing used to be quite straightforward. Many domain names, like double pinyin domains and numeric domains with nice pattern were available to be registered. It mostly depends on sight and luck. Though it still does, things changed.

Pinyin Domains

Double domain names are regarded as useful domains. Domains like baidu.com, taobao.com, youku.com and tudou.com are consistent with Chinese customary. If you invest on one domain name like this and happen to bump into one end-user, profit comes thereafter. And this is the original form of domain investing.

Mike Cai, as is known to all that he registered a large number of double domain names, many of which sold to famous websites.

It is said that investors usually need to pay some “tuition fee” when they first get into the market. They may register some domains that they consider are with good pattern while end up with no investing value.

Now, double pinyin domains and even triple pinyin domains in major gTlds such as .com and .cn are gobbled up. The rest are not so easy to remember and with little investing value.

Pinyin domains are hard to be priced as the value depends on many factors. Is there end-users? How many? What’s the end-users company scale? Is there a chance they will consider to buy this domain? For all these affecting factors require far-sighted and risk taking.


Numeric Domains

Numeric domains are favored by many famous end-users, such as 58, 4399, 163, 17173, 5173 etc. Unlike pinyin domains, numeric domains can be counted. There are 100 NN.com domains, 1000 NNN.com domains and 10000 NNNN.com domains etc.

Numeric domains are easy to remember and are not limited to certain kind of end-users, which are gradually set with a certain market price range. Numeric domains are of better liquidity and enjoy price rise every year.

When I was in college, I remember NNNN.com domains without 0, 4 are CNY 2000 or so each. And I was thinking who will be so stupid to spend 2000 to buy a domain name for website. A few years later, I spent CNY 70K to buy a NNNN.com. we can see the surprising price rising of domain names.

Now NNN.com domain name is priced over millions, NNNN.com domain name costs 200K.


Bulk Registry


And then, investors change the way they invest in domain names. NNNNN.com domains are all registered and one without 0, 4 is priced over 20K.

How about NNNNNN.com? One year ago, you can easily register a nice one with CNY 50. And few transactions started between them. It is counted that there are 262144 NNNNNN.com domains without 0, 4. Counted out those already registered, registering the rest cost no more than CNY 10 millions. And some of investors have registered all of them. Within several months, NNNNNN.com domains’ price is raised from 50 to 1500.

Other type of domain names, like other gTlds, seven numbered domain names, letter domain names, are also invested in this way, which quoted as bulk registry.

Then, there are “domain investing fund” and “domain loaning platform”. Domain investors are expecting “domain securitization” and “domain finance”. Thus, if you still think domain investing only means registering a good domain name and selling it to an end-user, you are out of the fashion.


 
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I read this story early this morning and it opened my eyes to a future of global domain trading as commodity. The important points are (1) numbers are universal. Unlike word-based domain names which require understanding of the language used, numbers can be understood by investors in any country. (2) investors can understand the limited supply of each type of numeric domain names. I see a world of numeric domain names traded with standard prices based on (1) length, (2) extension. Very easy for the average investors to understand. There will be one global exchange and numeric domain names are traded everyday without any concern for website building, similar to currency trading. It is already possible to borrow against domain names (such as this company (sorry, in Chinese). Once leverage becomes common place, imagine how the trading volume will explode!
 
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Briefly explained, liked the post.
 
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I read this story early this morning and it opened my eyes to a future of global domain trading as commodity. The important points are (1) numbers are universal. Unlike word-based domain names which require understanding of the language used, numbers can be understood by investors in any country. (2) investors can understand the limited supply of each type of numeric domain names. I see a world of numeric domain names traded with standard prices based on (1) length, (2) extension. Very easy for the average investors to understand. There will be one global exchange and numeric domain names are traded everyday without any concern for website building, similar to currency trading. It is already possible to borrow against domain names (such as this company (sorry, in Chinese). Once leverage becomes common place, imagine how the trading volume will explode!
very informative, brief and clear! thanks Kassey! :D
 
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