Investment in the ccTLD market | A global perspective

by staff writer – Bruce Tedeschi

The ccTLD domain market provides established and new domain investors a rare opportunity that cannot be offered domestically. That opportunity is availability of domain names and an early barrier to entry. As an investor and broker, ccTLDs have been growing over the past 2-3 years. An explosion of growth has occurred throughout the world. Many untapped markets exist such as Sweden, Australia, Poland and many more countries. However, there are traps along the investment trail that could make your investment fall short.

A general rule is to invest in what you understand. Allow me to explain… Using online translators are a poor tool for determining what to register. You either need to know someone fluent in culture and slang or you will lose your investment. There is an alternative that is very accurate and that is buying a copy of Rosetta language software for the country you are focusing on for correct terms and language. I have used this tool and found great success. Keep in mind, no system is fail proof. Mistakes will be made, so it is critical that you have a few sources to confirm the proper spelling and terms. Once you have reached that point, focusing on markets that show growth is your best investment strategy.

Let’s use an example to see what ccTLDs would be a good investment. As an example, let’s use .de for our purposes of determining investment in this extension.

Country status in the world
Germany has economic status and influence in the world. German exports for their goods are very strong. This means that economic growth and credit availability is strong. These two elements mean money to invest in marketing, advertising, sales and branding.

Domain Growth
.de domain growth has exploded. Many businesses (end-users) are investing in .de domain names. So why is this important? Simply, end-users pay more for a domain name than domain name resellers. Unlike other countries, Germany understands the power of a domain name! particularly if it is a generic domain.

Ability to influence buying patterns
Germany has the ability to influence global buying patterns. Germany takes good technology and makes it exceptional technology. Better goods translate to better sales influencing buyer patterns in global markets.

Can be used in English or German
This does not equate literally. Single words recognized by global markets can include English and German words for German markets. You need only look at German advertisers in English words to see the flexibility of the domain name.

Know the country rules for registration
Ensure you know the country code registration rules and terms before registering or buying in the aftermarket. Countries like China (.cn) now require proof of ownership via a business license in China. Currently Germany requires a German address for registration unless you use a proxy such as Moniker.com.

Summary:
As in any market, inherent risk exists in any ccTLD. A realistic view is that investing $8.00 in a .de domain name that you have researched is a good bet. Investing in a .de domain name that you have not researched is a bad investment.

Read and pursue as many articles and videos as you can on ccTLDs. Ensure you visit ICANN’s website and read about coming changes and trends. Finally, invest in what you know.