How A Decline in the Chinese Economy Will Impact Domains

domainking131

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The biggest concern with a Chinese economic downturn is the impact that it will have on the rest of the world. As companies reduce spending and hunker down during the economic storm domain valuations will be the recipient of a perfect storm of less demand and massively greater supply courtesy of the new gTLDs.

If you are considering an offer right now on a domain, then my advice would be to take it, as I believe we will be heading into some rough water over the next couple of years. I’ve never regretted having cash in the bank and if I’m right, then there’s going to be some real bargains available in the not too distant future.

Here is a list of actions that you may wish to consider implementing:

  • Finalise all active domain transactions.
  • Review the prices of all of your domains with an eye to reducing them.
  • Ensure all of your domains have buy it now prices on them.
  • Get all of your domains into each of the active market places.
  • Actively reach out to end users of your domains to market them.
  • Setup a webpage with all of your domains listed and their prices. All “for sale” links on parked pages should point to this webpage. If a potential buyer clicks on one of the domains then it may route through to one of the market places to handle the negotiation etc. This will mean that all of the traffic from potential buyers will be routed through to your domain list and not used to potentially sell someone else’s domain.
  • Outsource all of your domain management (especially for traffic) to a company that actively reduces revenue risk.
  • Do not buy any domains unless you can see a clearly defined exit.
  • Close any developmental projects that have a time horizon greater than 2 months.


This article comes directly from the domain expert and a reputed domain name visionary Michael Gilmour.
You may find the article here
 
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