news Domain investing: Pizza.Elephant & Very Short Domains

[Brands.International]

Brands.International for Medium.com.

Domain investing: Pizza.Elephant & Very Short Domains

Hundreds of new gTLDs (also known as new generic top-level domains, new domain names, or a new generation of domain names: domains created in extensions like .life, .world, .online, store or .poker) are available on the internet since 2014, and more than 35 million of them were since registered. Hundreds of thousands of domain investors worldwide are now looking into opportunities and are purchasing these names. I am one of them, selling and buying very intensively. I have therefore some direct insight, and in my honest opinion, a lot of investors are not making good decisions when it comes to new gTLDs.

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[atinc]

Good to see you back Marek. Great article

 

[Bob Hawkes]

Nice article @Brands.International. and I agree with both points made. The automated valuations have encouraged too many new extension investors to register mismatches on two sides of dot, since often they have high valuations (same with 2L and 3L).

With respect to short names, beyond those where the short name is also very meaningful (such as a common generic acronym), I think that in general the number of registrations in an extension are an indicator of worth. Short are worth a lot in .com simply because so many names registered, and same with some country codes. As you note, if renewal fees are low, long term investments might make sense in some new gTLDs, but only if we also assume that registrations will grow in that extension. I doubt we will see very high registration numbers in more than a handful of deeply discounted new registrations, and even then an order of magnitude or more less than .com.

The different base for different new extensions also important. Short names are more sought in some parts of world.

Thanks for sharing your insights in a well-written article.

Bob

 

[Brands.International]

Good to see you back Marek. Great article

Hello Ahmet, thank for your kind words, and it is nice to see you back here as well friend

 

[Brands.International]

Nice article @Brands.International. and I agree with both points made. The automated valuations have encouraged too many new extension investors to register mismatches on two sides of dot, since often they have high valuations (same with 2L and 3L).

With respect to short names, beyond those where the short name is also very meaningful (such as a common generic acronym), I think that in general the number of registrations in an extension are an indicator of worth. Short are worth a lot in .com simply because so many names registered, and same with some country codes. As you note, if renewal fees are low, long term investments might make sense in some new gTLDs, but only if we also assume that registrations will grow in that extension. I doubt we will see very high registration numbers in more than a handful of deeply discounted new registrations, and even then an order of magnitude or more less than .com.

The different base for different new extensions also important. Short names are more sought in some parts of world.

Thanks for sharing your insights in a well-written article.

Bob

Thank you Bob, I am glad you liked the article!

You are right with automated appraisals. I have to say, I am starting to have problems with appraisals as such (do not need to be automated), as I think to provide a number, without providing also some set of time frame (probabilities) is very misleading for domain investors in general.

I will write article about that too, soon

 

[garptrader]

I guess the magic question is what pushes a small business owner or marketer or IT decision maker to go from wanting a domain for a project / business to ignoring all the reg fee suggestions offered by the registrar and buying a specific aftermarket domain at a premium price when undoubtedly they could have been a little creative and registered a domain for under $50.

 

[Brands.International]

I guess the magic question is what pushes a small business owner or marketer or IT decision maker to go from wanting a domain for a project / business to ignoring all the reg fee suggestions offered by the registrar and buying a specific aftermarket domain at a premium price when undoubtedly they could have been a little creative and registered a domain for under $50.

It's the quality of the name Never buy anything where a lot of reg fee alternatives exists.

 

[Mytz.com]

Thanks for sharing