I have had many failures in my life. But, when I look back, I realize that they were actually blessings in disguise. For example, when I was in my senior high school, my teachers were confident that I could enter the most prestigious university in the dragon city. Yet, at the most critical moment during the entrance exam, I froze and could not write even a word on the answer sheet. As a result, I went to my second choice, which led to a book on living overseas, which in turn led to meeting my wife in the Sakura country. What a blessing! Here's the post.
September 20, 2016 (Tue)
The hard-learned lessons of a Chinese domain investor
Unlike domain forums such as Namepros in the west, I find their counterparts in China not very engaging with discussion or debate. Nevertheless, once in a while I do find one or two interesting articles posted on Chinese domain forums. For example, the other day I came across a long post on DNbbs.com.
It was written by a domain investor using the handle Budongyuming (不懂域名). The name is quite ironic as it literally means "don't understand domain names." The post describes 18 lessons the investor learned through domain investment, and I list them here to share with you.
Money in the bank is more reliable than in your registrar's account.
Investment is planned but speculation is impulsive.
Priority 1: .com > .cn > .com.cn > .net. Priority 2: Acronym (up to 4L) >= Pinyin (2-pin) > number. For numbers, 4N or less are solid but 5N names do not have many end users.
Domain names can only be sold to either end users or domain investors who eventually will sell to end users. If no domain investor wants your domain name, then that also means there will not be end users for your domain name.
You pay a "tuition" at the beginning of your investment life to learn because you have no experience, no good training, or no master to teach you.
Stay away from speculation!
Only one type of people can speculate: the big players.
Domain names are like antiques. It takes time for value to increase. Do not expect to get return to your investment within three years, regardless of how good the quality of your domain name is.
Don't buy stolen domain names or those that are clearly way under their market values.
Do not borrow money to invest in domain names. Using money you've earned will help you learn how to invest and make a profit.
Selling domain names to end users is an art, and selling domain names to investors is a business. Art is harder to master.
Market prices are good only when you buy or when you must sell urgently. Ignore them after you own the domain names.
Do not believe the headline news. Instead, develop your analytical ability.
Do not take it lightly when acquiring a domain name that matches a brand. You may lose both your money and the domain name.
Have a plan to lower risks when managing your profit: cash out, reinvest, or diversity.
Domain investment is about constantly getting rid of lesser quality names and upgrading to better names.
In some cases, buyers may not be able to pay your expected price. Therefore, also prepare the lowest price that will allow you to get ride of the domain name -- even at a loss.
Start with a small goal -- such as being OK to lose $1,500.
Details in Chinese can be found at http://www.dnbbs.com/thread-1184712-1-1.html