Archive for March 2016

Will 5L.COMs be the next CHIPs in bulk registration time?

Do you still remember the most popular CHIPs last year?
Have you gotten the newest domain trend in Chinese domain market?

According to last week’s market trading data, 5L.com names are facing promising market. Will 5L.coms be the next hot ones? Domainers hold different ideas. According to their experience, they think it mainly depends on two factors: 1. Value for End-users, 2. Bulk investment only for Big wheels’.

The high prices of LLL.com are not fully accepted by most startups and some of them turn to LLLL.com. However if 4L.com also couldn’t be so satisfactory, then 5L.com names market emerges.

For end-users, two ways could be tried.

1. The first two letters are acronym of region and the last three letters are acronym of brand or industry. If it is a company from Shanghai, it could choose sh+ acronym of its brand or industry.

2. The first several letters are acronym of brand or industry and put zx 在线(online), gs公司(company), jt集团(group) at the end of the name.

Let’s look at the second factor for investors.

Domainers are usually intermediaries and get profit margins between big wheels and end-users. However why will these big bosses open a position for 5L.com names? However even if these 5L.com names could be sold to end-users, if they couldn’t be sold at a satisfying markup, then the margin could not even be taken to renew domains.

The previous wave of Chips has not completely faded away and the bigwigs’ capital still couldn’t be withdrawn from Chips. And, of course, if new funds are poured into the market, that is another matter. In view of the existing domain name market, Chips’ prices have not exceeded CNY 15,000, and it is a mystery whether these bigwigs have the capabilities to buy a new domain type in bulk which total amount exceeds 3.2 million.

Some domainers say, “It is a match for selling and renewal. 5L.com names may be registered out in March. However the bigwigs will not help these investors sell their domains until the prices rise up to some extent. At that time, no one will be willing to purchase these domains since once you get them, they are to be renewed soon. ”

Conservative investors insist on principle “Do not follow the trend, no speculation, invest in cheap names and to earn just pennies”. Bulk domain registration means higher risks. So we come up with the same conclusion that domain investing is of great risks and investors shall invest according to his abilities.

(the 5L.com domains we mentioned mainly go to five consonant letter .com domains)