The whole domain industry seems to be finally getting excited about Country Code Top Level Domains (ccTLDs). Even the American domainers are evidently testing the waters.

We had the chatter, the hype, the forums and the conference, so now what’s next?

I’m very pleased to hear that the TRAFFIC ccTLD went very well. Unfortunately I had other business commitments elsewhere in Europe and wasn’t able to fit TRAFFIC ccTLD in.

From what I have read so far on DN Journal it seem to have went very well and even surpassed expectations.

One of the reasons why I wanted to attended the ccTLD conference was to hear first-hand about the various restrictions and residency requirements that some registries seem to have for ccTLD. It would have also been good to chit-chat to the respective registry representatives and even local investors to get a clear idea as to the types of domains that are likely to do well on the domain aftermarket.

Analysis of ccTLDs
The ccTLDs do have tons of potential. The end-user markets are quite strong. If domainers get the right types of domains they could be laughing all the way to the bank.

Whereas a significant amount of the .com domains are parked or registered by speculators, I believe the majority of all registered ccTLDs are owned by end-users. Europeans like to use their own ccTLD.  One of the reasons for this is that while the .com version of their desired domain may be already taken, the ccTLD version is normally still available for registration.

Also, using the ccTLD is better for local search, branding and building trust amongst their local clientele.

Investing In ccTLDs
There are some ccTLDs that have loads of potential. And at the moment, that is all that they have got, potential. This is due to the fact that there are still loads of unregistered premium domain names for some ccTLDs. So the end-user still has a choice of top quality unregistered premium domains, and as a result, may be unwilling to spare the cash to invest in an aftermarket domain name.

Some ccTLDs are currently only attractive to long-term investors. It will take time, and even faith/risk-taking for the full aftermarket sales machinery to kick in for quite a few ccTLDs.

The only ccTLDs that will do well immediately on the aftermarket are those that monetize well, and those where the amount of unregistered premium domains are extremely limited.

If the ccTLD does well with domain parking, then there will be an immediate and active domainer-to-domainer sales market. If there are very few unregistered premium domains and the internet penetration in that particular country is quite high, then the domain aftermarket sales to end-users will be very strong.

My ccTLD Investment Strategies
Personally, I currently own my fair share of ccTLDs. I also owned hundreds of domains in various ccTLDs up until late last year. Most were sold, while some were dropped.

This recession has highlighted quite a few risks in my buy and hold domaining strategy. Given that barely any business sector was spared, I had to take various measures across my businesses in order for them to remain profitable.

When companies face economic uncertainties they take quite a few measures, most of which are tied to cutting costs. These costs are often related staff costs, and quite often the end result will be redundancies. The other popular measure taken by businesses is re-organisation. This often includes selling or shutting down certain aspects of a business.

With my domaining business, this re-organisation and shut down process will involve my buy-and hold investments. I am switching my business to a buy-and-flip model and limiting the number of long term buy-and-hold investments.

With that being said, this means that I won’t invest in the majority of ccTLDs until the aftermarket for those ccTLDs become extremely active. Of course the profit margins will be absolutely minimal, as all the great premium domains would have been registered by the buy-and-hold investors.

Diversity is key for the success of any businesses. I will keep a mixture of both long and short-term investments. However, I will reserve the long-term ccTLD investments only for the ultra-premium domains.