Coreile

Chinese Domain Market Newsletter

Skype is cool! The other day I had an online conversation with two girls. They arrived in this country only two months ago and are studying at different universities as exchange students from my alma mater. As a mentor assigned to them by my former college, I hold a group meeting with them via Skype regularly. With the internet, distance is no longer a hurdle. They learn from my past experience and I learn from their present experiences. Isn't it wonderful? I wish them great future. Here's the post.

August 16, 2016 (Tue)

The mythical horse's .club strategy


China is a strange place. Within the domain community, investors are often known by their nicknames such as Uncle Hang, little sister, and fat boy. Why such practice? I don't know, but I also had quite a few nicknames when I was growing up. These names kind of gave me a special bond with people within the same circle. Maybe the domain circle is a close-knit community after all.

Today's post is about Mythical Horse (神马), an experienced domain investor whose real name is Yu Sheng DENG (邓玉生). Deng used to invest in .com and .cn but in 2014 he started paying attention to the new domain extensions. When he discovered .club, he invested big in it.

Why? Well, it has to do with his investment philosophy. He likes to seek out a good extension, register a large number of good domain names on it cheaply, and then renew cheaply while waiting for their values to rise. In 2014, he felt good .com and .cn names were too expensive to amass a large quantity. But, he found .club as a perfect candidate matching his philosophy.

First, .club is a good extension. It starts with "c" and is a complete word. From his media industry experience, Deng knows the word has a wide range of applications by end users. He also thinks .club is comparable with .com. Because the letter "l" does not take up much space, both .club and .com appears to have similar length. The order of entering "club" basically matches that of "com": both start with "c"; "lu" and "o" are near in their positions; so are the positions of "b" and "m". Deng also believes .club has a big market outside China when properly promoted.

Second, .club was among the first few extensions released. At that time, there was a lot of uncertainty on the viability of the new domain extensions. The .club registry reserved only a small number of domain names and good domain names such as 3N and 3L were available for registration. The registration and renewal fees are also low.

Deng saw this perfect opportunity. He invested heavily, acquiring several thousands of good .club domain name with the intention of waiting for 3 years or more for their values to rise.

Whether you agree with Chinese investors like Deng or not, we need to know there is a new type of investment philosophy popular in China where investors register a large quantity of cheap domain names and sell them like commodities. This trend will likely continue and even spread to the west.

Note: This post is based on the interview with Deng by West.cn during the World Domain Conference held in China recently, which can be found at http://news.west.cn/7885.html