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China's influence on the domain market

Discussion in 'General Domain Discussion' started by atom, Dec 30, 2015.

  1. atom

    atom Administrator

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    We've touched on this a few times here (Chinese Buy Out of 6N's, Anyone ever successfully communicated with Chinese enquiries? amongst other threads), and it looks like the demand for certain types of domains continues to grow and grow.

    "There is a market unfolding that very few know about, and tens of millions of dollars are trading hands monthly. Over the last two years, China has become the largest buyer of domain names, resulting in what is likely the biggest story in domain-name investing since the Internet began."

    "the biggest story in domain-name investing since the Internet began"?? Thoughts on this?

    *Could* this affect .au names (they love our real estate...)? Anyone have any particular strategies in mind for your more valuable .com names in respect to this? I have a couple of 4 letter .coms, one in particular fits the requirements of the Chinese buyers, and I get heaps of offers, but at this stage I'm waiting to see where this is going.

    http://techcrunch.com/2015/12/12/china-making-domain-name-history/
     
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  2. Scott7

    Scott7 Membership: Trader

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    I find Domain Shane's daily auction list and recap posts helpful in keeping up to date with what's selling and the prices being achieved for short domains and numerics. He has recently employed someone to post about Chinese auction results and trends, which shows prices on Chinese markets in USD.
     
  3. DnEbook

    DnEbook Membership: VIP

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    I doubt there will be any crossover to .com.au
    ~
    If you want Chinese Sales you need Numeric .coms and short 3L to 5L .coms
    ~
    There have been "buyouts' in other extensions but many think there will be massive drops this time next year
    ~
    Stick with .com in this genre and do not overpay (names that were $12 only 18 months ago are now reaching $2000) Due to the Piniyin meanings ....... Chinese Language that use no vowels or the letter V
     
  4. AlexRav

    AlexRav Membership: Community

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  5. DnEbook

    DnEbook Membership: VIP

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  6. AlexRav

    AlexRav Membership: Community

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    Indeed, $2.5m USD for house.com
     
  7. AlexRav

    AlexRav Membership: Community

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    Here's a small list of recent sales from a Chinese Live Auction:
    http://www.thedomains.com/2015/12/20/68124/

    Few premium domains in there, "gg.com" is a big one in the video gaming industry that most peeps wouldn't immediately pick up on.
     
  8. snoopy

    snoopy Membership: VIP

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    The whole area is massive risk in my view. I've never been keen on buying domains where there is only 1 factor propping values up. It seems artificial but I don't understand the market either.

    Nope, only on LLLL.com etc. Will be interesting to see what happens but this is something of a first.
     
  9. atom

    atom Administrator

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    Interesting stuff, thanks all.

    Anyone who is receiving offers for LLL.com from China, do you mind saying what the initial offers typically are at this stage? Mostly I'm getting USD$1,500 to 1,900. If I chose to negotiate I'm not sure how much movement there'd be from there.
     
  10. DnEbook

    DnEbook Membership: VIP

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    You may have to do some reading at namepros, there is also namebio and a few data sites to get more info
     
    atom likes this.
  11. atom

    atom Administrator

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    Thanks spacey, will have a look.
     
  12. chris

    chris Administrator

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    Nothing other than LLLL.com, but I've started seeing a few more scammy domain renewal notifications targeting these domains than usual.

    Check out 4.cn, they have an English interface for most of the site.

    It will be interesting to see if the .au space attracts new players. I personally think it might, even if it's not what we've traditionally seen.
     
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  13. eBranding.com.au

    eBranding.com.au Membership: VIP

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    I think the regulatory environment will restrict international interest. The .au namespace is one of the most restricted around the world. In particular, it's far less accessible for international companies.
     
  14. eBranding.com.au

    eBranding.com.au Membership: VIP

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    I've been thinking about this and wanted to clarify my earlier comment. I've sold to overseas buyers myself so of course there's interest in our market, but I do think there are some barriers to entry that would hamper broader international investor interest.

    .com domains can be registered in a few clicks at any registrar, but .com.au domains have eligibility criteria (and other policy restrictions). This adds complexity and reduces accessibility for international investors.

    I think the simplicity of registering, buying and selling .com domains is one of the elements that has made it such an attractive area for investment. The barriers to entry are very low.

    Our local extension is complicated by comparison, and I say that as someone that now invests almost entirely in .com.au domains.
     
    atom likes this.
  15. atom

    atom Administrator

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    Is there any chance that requirements to register .au names may be eased? If it meant more being registered (sold...) then maybe?

    If so, would it devalue them to us, Australian businesses and Aussie based internet users?
     
  16. DnEbook

    DnEbook Membership: VIP

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    The .com numerics are being treated like a cyber currency, do not expect the crossover to .com.au
    ~
    It's just not going to happen .........soon
     
  17. Cooper Mills DomainLawyer

    Cooper Mills DomainLawyer Membership: VIP

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  18. snoopy

    snoopy Membership: VIP

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    The numbers don't quite fit to me. In my experience Chinese leads are usually only average in quality. Has to be something else going on, such as DNS brokering a lot of sales to a small number of Chinese speculators which is skewing the numbers.
     
  19. rensit

    rensit Membership: Community

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    They seem to go for quantity over quality.
     
  20. atom

    atom Administrator

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    They also tend to evaluate the manes differently than we do. They may miss acronyms (or 'initialisms') in common use in English, and we don't recognise the value of certain combinations to Chinese speakers. It makes it difficult to value, and I find the increased offers still don't necessarily match the potential value to an English buyer.