Think people forgot that .com means commercial? Yes commercial is a term for business but it is also a term for advertising which is probably it's real meaning. Because before internet it was called BBS - Bulletin Board System. To a new generation .computer? .whatever .etc. .CLOUD? .falseadvertising .payperclick .adsense .keyword .ripoff .insane .maybe all the new extensions are really just another way for the owners of the mega expensive .coms to try to recoup the lost money they spent on those dot coms or make more because of their fame in the domain sales world? In any case after you really look, check the name sales history in the dot com and look at the new extension name.... So if that is the case that has to be bad news and a clear indicator of a very important and basic fact for a domain to really be worth anything content, content, content = users, members, income. Not oh google says this or that (seo) google will say anything to take your money and big sites will allow anything to be advertised so long as they make money? Half of those adverts are false advertising that has to hurt a domain especially when you have screen shots of your so called investment on way back machine, that probably has links to bogus sites via pay per click advertising because of cash parking, that really is not protecting your investment is it? Just some food for thought. But you know I am right investors do background checks on domains now just like employers do potential staff members.
Wrong assumption, COM stands for COMPANY. Back then the internet was not commercialized. COM was always supposed to be an extension for companies not for commerce. Google it if you don't believe me but theres a lot of wrong information too.
COM has so much value because of its recognition. You can't take that away. When I enter "namepros.com" into a browser, it's actually short for "namepros.company". Or when I enter namepros.co into a browser, guess what, it's short for namepros.company. Only consumers dont know that. They only know what DOT COM is.
They know it will lead them to an "established" website. And that trust can be turned into sales. That's why businesses invest millions, because they know they can at least expect a positive ROI and the asset will not lose any value!
gTLDs are unproven. Positive ROI is not a guarantee. BUT with new gTLDs, one important thing will come into play again. Exact match queries. No one would search for "namepros company", but people search for "moving company" or similar keywords. That's why names like transfer.money, commercial.property or luxury.estate sold for what they did. It's shorter than commercialproperty.co or transfermoney.co. Yet they only fetched like 50k-100k because they are brand new names and unproven. It's great to set yourself apart from the competition, that's why people invest into new gTLDs TODAY, because they understand that DOT COM will not always be the only trusted domain extension there is.
Many extensions will fail, but some like .club, .nyc, .tips, .web may thrive, which can drive up the value of other extensions like money or estate. They will co-exist with DOT COM. INFO was the only viable gTLD out there for a long time and its not the greatest term, but other short terms make a lot of sense and will be valued by companies for what they are.
Terms that possibly describe their business better than a DOT COM ever could. Why invest 100k into wine.club? For nothing? Or because you believe the ROI will be greater than that and you can't afford the 10 million for wine.com? Plus, consumers will still believe I'm a heck of a deal with a strong organic name like that.
Imho, 25% of all domain sales will be gTLDs in the next 5 years. We're already at 25% NON-COM sales now (based on reported numbers by holding companies which include ccTLD and other extensions like me,co, etc).
Everyone who says DOT COM will be the only successful extension is blinded. We don't know that yet. COM is just an abbreviation for company. Same as CO. CO is a great extension with many sales, but why hasn't it annihilated COM? Because it doesn't have the recognition. It hasn't been around for 30 years (1985), only 5+ (2010).
That matters. Age matters.
Consumers are just waking up to the fact that we now can have names like tech.news .. and it will take time before they accept it. That's why I believe the most important thing right now for any gTLD investor is that Google changes google.com to search.google or similar - when that happens gTLDs have momentum. I believe sales will skyrocket for a while and then find a plateau somewhere. They will happily co-exist with DOT COM.
What I find interesting is that some gTLDs are already seeing typein traffic. Just imagine what it would be like when people start entering newyork.apartments or newyork.insurance or newyork.bars into their browser instead of apartments.com or insurance.com or bars.com. When we're at that stage and those names see real traffic from real consumers then we know that new gTLDs have succeeded and businesses will start paying premium prices for names with traffic. That's how DOT COMs got started. People were coming to website.com or restaurant.com by entering it into the address bar. Rick Schwartz made a killing from typein traffic. That's why DOT COMs have so much value too. They are not only trusted, they are considered the 'norm' (the default choice), but when consumers get used to typing in watch.youtube, what do you think will happen?
Speculate on the outcome of what happens when Google will start using its 42+ extensions (.google, .youtube, .play, .dev, .foo, .mov and so on) and make a decision whether you want to participate or not. Google have already publicly stated they will start using the extensions in late 2015.
I understand why DOT COM investors dont want them to succeed because it will hurt their negotiations and they lose a great deal of leverage. They have already lost leverage because many businesses dont want to or simply cannot afford to spend 1 million or even 20k for a domain.
They go elsewhere and now they can like never before. That's the real value of new gTLDs.
Liberation - and it does hurt DOT COM owners, not necessarily owners of names like Malls.com or Teamwork.com but owners of names like NewYorkDentist.com, OhioRealEstate.com, ... those names may lose in value because price is always driven by supply and demand. There's more supply now (alternatives) and less demand for DOT COM domains (by small businesses and startups who are already using DOT CO or DOT IO in hordes).
I would happily buy Mindmap.io, Accounting.io, TaxSoftware.co and take my chances with that. Ask yourself, if you owned a business what would you do? Buy a DOT COM for 20k or buy a DOT CO,IO,WEB,ESTATE for a lot less? I'm a business owner and I know what I'd do
if I lacked the funds and needed a quick ROI to get my business started. There are more startups and new companies than established companies and they are generating a lot of demand that used to drive up prices.
However, I also understand brand development and when I am really serious about
building a long-term business and have the required funds, well then i'd invest into a COM or a NET any day and have done so in the past myself.
The recognition and trust of DOT COM and NET will allow me to safe a great deal of money in the future and that's worth it to me.
CONCLUSIONS (if you dont want to read entire block):
- COM stands for company not commercial, eCommerce was not established back then, but an extension for companies was required in some way
- Startups are increasingly going elsewhere and have more options now
- DOT COM owners lose SOME leverage during negotiation when dealing with small business owners and startups
- New gTLDs are getting early type-in traffic.
- Consumers could get used to entering phrases like watch.youtube, search.google, pay.barclays. When that happens, they may also start searching for nyc.apartments, boston.apartments, nyc.bars, nightclub.nyc, donuts.nyc, restaurant.nearme, bikeshop.where, bike.shop, ....
- GEO domains and popular exact match keywords may become winners in this new market
- New Google algorithm could play huge role and is a wildcard in all of this. You just never know with Google, they change directions very often. Right now brands are the answer but then a smart Google SEO may come along and say they could drive more organic traffic by ranking new gTLDs differently and voilà you have a completely new industry. And I'd bet Donuts Co is already sending out its lobbyists.
It's safe to assume that small businesses and registry operators are the big winners of this war. At the moment we can only speculate and make guesses. Nothing is set in stone.