Are domain name investment still valuable?The three"W"principles of domain name investment!

Some people hold ordinary domain names but play their cards well, while others have the funds but don't know where to start, resulting in good cards turning into bad ones. The domain name world is constantly changing, each with its own successes and failures, each with its own ways of playing the game. Perhaps not all of them are suitable for you, but you can still learn from their experiences and lessons. Let's take a look at the exclusive "3W Principles" shared by seasoned domain investors.

1. WHICH: Choose domain names that cover a wide range of fields

Pinyin domain names, letter domain names, numeric domain names, combination domain names - the vast quantity of domain names, combined with the ever-changing market conditions, often leaves domain name investors feeling overwhelmed, afraid of missing out on opportunities. That's why seasoned domain investors tend to choose relatively safe options, domain names with multiple meanings and a wide range of applicability. This is also why animal domain names have recently gained so much popularity.

Animal domain names are familiar and easy to remember for internet users. They are also beneficial for promotion to end-users. For domain name investors and website owners, animal domain names have no restrictions on their use, making them applicable to all industries. For example, Netease's newly launched cross-border e-commerce website uses "kaola.com," and logistics company Cainiao.com and financial group Mayi.com, both affiliated with Alibaba, have chosen similar examples. Animal domain names have undoubtedly become a hot commodity and a versatile option for investors.

Domain names with diverse meanings, single-letter and some double-letter domain names, also cover a wide range of fields. While they may not cover all industries like animal domain names, their diverse meanings make them suitable for at least two to three different industries. For example, "sj.com," recently acquired for millions by a prominent investor, has multiple meanings such as mobile phones, social networks, exams, merchants, design, and drivers. It is applicable to education, smartphones, e-commerce, car rentals, dating, and many other industries, making its value evident. This is why letter domain names have maintained their appeal in the market for so long.

However, are domain names with diverse meanings and wide-ranging fields foolproof? Are domain names with strong industry focus not as good? Can a domain name's quality be determined solely by the diversity of fields it covers? In reality, this is not the case. The scope of application for building a website is just one of many criteria for assessing a domain name; specific domain names require individual analysis. For example, "qiche.cn," recently traded, is suitable only for automotive websites, and its value is self-evident.

Domain names with strong industry focus may not have as wide an audience as those with diverse meanings, but they have clear positioning, are user-friendly, and can become coveted assets within their respective industries. Their value is not inferior to domain names with broader meanings and may sometimes be even higher.

For example, "qiche.com" targeting the automotive industry and "game.com" and "youxi.com" targeting the gaming industry have all been traded for tens of millions of dollars. Moreover, if an industry has a promising future, domain names in that niche will also rise in value. As an example, with the approaching legalization of online prescription drug sales, the prices of pharmaceutical domain names have been steadily rising. Not to mention the multimillion-dollar transaction for "yao.com," domain names such as "chufang.cn," "xiyao.com," and "liangyao.com" in the pharmaceutical field have also been frequently traded recently.

2. WHO: Gather all information about future buyers

Once you acquire a domain name, the next step is naturally to consider how to sell it and to whom. Selling the domain name to an end-user is every domain investor's dream. Besides the intrinsic value of the domain name itself, the offer from an end-user is generally higher.

Therefore, before promoting the domain name to an end-user, it's essential to collect all information about potential buyers, including their competitors and the gaps between them. You also need to understand the future direction of the buyers, especially traditional companies that may not have plans to enter the internet industry on a large scale. As the saying goes, knowing your enemy and yourself will enable you to win a hundred battles.

3. WHAT: Accurate pricing

Pricing is a challenging aspect for many investors. If the price is set too high, you might scare away potential buyers; if it's set too low, you'll be at a disadvantage. Therefore, a deep understanding of the industry and future buyers is crucial. Once you have a clear understanding of these factors, you can accurately price the domain name. This also increases the likelihood of successful transactions. For industries like real estate, finance, and automobiles, where there is significant wealth, higher pricing is acceptable.

Furthermore, being proactive is essential. When a buyer requests a quote, you should confidently provide your price rather than asking the other party to make an offer. For example, when selling domain names like "lilisi.com" to Lily Technology, the developer of "Dota Legend," the seller accepted a relatively low five-figure price for four brand domain names because they failed to take the initiative.

Of course, each investor has their unique insights into domain name investments, and the "3W Principles" of this particular domain investor are provided for reference only. Hopefully, domain name investors can draw valuable lessons from these principles that suit their individual needs.