If you know much about me, you know that I almost exclusively buy and own .com domain names. I own a handful of non-.com domain names, but the vast majority of my investments are .com domains. I don’t anticipate that will change in the short term.
Yesterday, Braden Pollock published an article about why he bought a self-reported six figures worth of .WS domain names. As you can see, there were a lot of comments, and I think having a public discussion like this is a good thing.
This morning, I want to share a bit about why I wouldn’t invest in .WS domain names (at least not now).
In my opinion, buying domain names like these is gambling that Chinese buyers will want to buy them at a premium price above what I paid. Buyers based in China seem to be buying a ton of non-.com domain names, and I still don’t understand the Chinese domain investment market. I have seen various extensions selling well in China – .Club, .XYZ, .Top…. etc. as examples. I still haven’t bought any of these because I don’t understand why certain types of these domain names are being bought in such huge quantities. Maybe that shouldn’t matter to me, but it does.
If I were to buy .WS domain names and Chinese don’t want to buy them from me, then I think the names will have limited appeal elsewhere. This is especially the case if I were to focus on Chinese-centric names. My guess is that they don’t get enough organic traffic to generate enough revenue to pay for themselves each year, and I would not develop a .WS domain because it’s difficult enough to gain traction with a .com.
I have no idea how likely it is that these domain names will be in demand by others. My guess is that some .WS domain names will sell, but I think it would take a large investment to yield enough of a return for a material gain. I would rather spend that capital on buying good .com domain names where I think there is far less risk.
Yes, in the last couple of years, I missed out on buying “Chips” and other coveted Chinese-focused domain investments for the most part, but I am not going to start chasing trends. There is too much risk doing that. I wish Braden and others well with their investments (because I always wish others well and their success wouldn’t equal my failure), but .WS investing is not for me.