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discuss Warning and advice from a Chinese domain investor

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Arpit131

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Warning:

(1) Bulk trading has no truth because of the burden of renewal, so the boom of 2015 will not come again.

(2) Weixin is eating websites (domain names). Weixin public accounts have quickly grown to 15 millions — much more than the 4.2m Chinese websites developed since 1984. Companies are shifting to Weixin to reach their customers.

(3) While new gTLDS are here to stay, many (such as .ee and .gg) are highly risky as investment because of lack of test of time and wide recognition.

(4) Domain securitization does not work because Pinyin names are hard to appraise and short number/letter names are too small in quantity to support the market; lack of supervision and trust in the market are the other factors.

(5) Increasingly tight control of the Internet by the government makes it difficult to have boom in domain sales.

(6) It’ll take longer to find the right buyer because huge supply of new extensions gives end users lots of choices.

(7) Domain names may be replaced by something new if the younger generation go for something else.

Advice:

(1) Shift thinking from “domain name” to “short domain names”.

(2) Make sure your domain name can be used to develop into a website.

(3) Stick to meaningful .com names as their values will continue to rise. cn, net, and org are OK as they will survive. But, beware of other ccTLDs and new gTLDs as they can be manipulated by registries and big money funds.

(4) Avoid debt but keep cash. Watch more, buy less.

(5) Review domain names and drop the bad ones.

(6) Treat domain investment as secondary income source, not primary one.

(7) Do not expect mega return. 20% should be considered very good.


The article was shared on TLDinvestors


Anything that you would like to add/criticize, discuss or share your experiences with Chinese domain market, you are most welcome!
 
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The views expressed on this page by users and staff are their own, not those of NamePros.
To be blunt, the advice is nothing new. Most of it we've heard dozens of times in varying iterations.

The "Warnings" should be taken with a grain of salt (and perhaps a tall beer). It is just opinion, yes some based on observations, "facts" (which should always be checked), but the reader must ask why they're being presented in such a way -- to prey on our fears or insecurities for example?
 
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We are seeing less registrations from Chinese domainers this year. Until last year we were seeing lots of registrations due to our low prices. This year even though we have better prices than last, the registrations are fewer (from Chinese domainers).
 
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