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Domain name investment may seem simple, but in reality, it is not. Different types of domain names, and even each individual domain name, have varying values, with a significant range spanning from just a few tens of dollars to several million or even tens of millions of dollars. Therefore, it is a worthwhile question to explore what constitutes a valuable domain name.
Each person has different investment philosophies and varying levels of investment capital, leading to different investment outcomes. Moreover, domain names are influenced by factors such as cultural differences, market changes, brand value, supply and demand dynamics, resulting in different submarkets within the same field. Examples include the Chinese domain name investment market, Western country domain name investment market, premium domain name investment market, and regular domain name investment market.
Therefore, to invest in domain names, one must lay a solid foundation by thoroughly understanding domain name knowledge. It is also beneficial to learn from investment experts and predecessors, and then develop a domain name investment approach that suits one's own circumstances, taking into account the current market environment.
I have compiled some viewpoints from investors in the industry to share with you:
Perspectives from Chinese investors:
Each person has different investment philosophies and varying levels of investment capital, leading to different investment outcomes. Moreover, domain names are influenced by factors such as cultural differences, market changes, brand value, supply and demand dynamics, resulting in different submarkets within the same field. Examples include the Chinese domain name investment market, Western country domain name investment market, premium domain name investment market, and regular domain name investment market.
Therefore, to invest in domain names, one must lay a solid foundation by thoroughly understanding domain name knowledge. It is also beneficial to learn from investment experts and predecessors, and then develop a domain name investment approach that suits one's own circumstances, taking into account the current market environment.
I have compiled some viewpoints from investors in the industry to share with you:
Perspectives from Chinese investors:
- The value of a domain name primarily lies in its usability. If someone is using it, it indicates that it has a certain value. However, when it comes to investment, the principle of scarcity applies. Short, dictionary words, and so on are preferred. Firstly, they are easy to understand; secondly, they are easy to remember; thirdly, they symbolize identity; and fourthly, they come with inherent traffic. In the age of the internet, traffic is highly valuable!
- The value of a domain name lies in its universality. For example, short numeric domain names can be used for almost any website or platform because numbers have unique meanings in Chinese culture, making them highly versatile and memorable. We can see many Chinese companies using numeric domain names for their websites, while they are rarely seen in Western countries. For a long time, Chinese investors have been buying numeric domain names from abroad and waiting for their value to appreciate.
- Domain name extension is crucial. For example, the same domain name with a .com extension is more valuable than with a .net extension. Different domain extensions have different applicability, and .com is the most widely applicable. As a result, there is fierce competition and high prices for good .com domain names, which remain dominant in the mainstream market.
- Short letter domains are limited in quantity, and excessively long letter abbreviations cannot effectively represent brand meanings. Word domains, including certain word combinations, have always had potential value because the majority of end customers do not have the exact word .com. To acquire a word .com corresponding to their brand, they usually allocate budgets exceeding those for other domain names.
- Domain names related to future trends are also highly valuable. However, these domains are not beginner-friendly as valuable ones have already been registered by early adopters, leaving potential traps that can lead to wasted money.
- Keyword domains have always been a good choice. As long as the right keywords are chosen, someone will eventually be willing to pay for them. Prices can range from a thousand dollars to tens of thousands of dollars or even higher, as some end customers are willing to pay a higher price for a particular domain name. However, it is important not to be too greedy when investing in keyword domains. If the price is similar, hesitation is unnecessary. Some end customers, once the price exceeds their expectations, may choose other word combinations that are similarly priced but even better.
- ccTLDs (country code top-level domains) and New TLDs (new generic top-level domains) are also worth considering. For ccTLD domain name investments, it is advisable to choose the extension of your own country. However, if you have specific knowledge about another country, you can also explore investments there. Additionally, some country-specific extensions are generic, offering even greater value and opportunities. There is also investment potential in certain New TLDs, but these two categories require higher quality standards for the domain names themselves.