An article about a student who blew his tuition money on domain speculation is an important reminder to people entering the domain industry.
Recent articles in Business 2.0 and The Wall Street Journal make it seem easy to make a quick buck in the domain name market. Experienced domainers know this isn’t the case. You have to be smart these days and make good deals to see a good return on investment.
Just tell that to Shi Kaisheng, a Chengdu college student who spent his tuition money on domain names with the hopes of selling them:
A Chengdu college student named Shi Kaisheng spent all of his tuition money and savings on an unsuccessful investment in domain name registration, Chengdu Wanbao reports. Shi had registered more than 30 domain names since the second half of 2005, including stonesea.com, dayunhui.cn and libaiqing.cn. Every registration cost Shi a 60 Yuan registration fee and a 1,800 Yuan trademark registration fee per year. However, Shi has so far failed to sell any of his domain names. Shi said that he has no money for college tuition and may be denied a graduation certificate for defaulting on his tuition fees. –Pacific Epoch
To most of us this seems like a small investment, but apparently not to this college student. I hear from people frequently who think they can spend a couple thousand dollars registering freely available domains and sell them for millions. Sorry, this isn’t how the game works.