new gtlds Is 85% A Realistic Renewal Rate For New gTLDs?

[News]

With the one-year mark hitting for a number of new gTLDs (new domain extensions) companies are trying to determine how to define their KPI around renewal rate. Donuts, the largest company in the new gTLD space and owner of the most gTLDs came out and said that they expected to see a renewal rate of 85%. I think that is high, very high, but I don’t mean this to be a slam on Donuts, in fact I’d say the opposite, I think they are absolutely crushing it, it’s the expectation around renewal rates that needs to change.

So while I commend Donuts on setting a high bar, I think they set the bar too high, they shouldn’t be disappointed with a 68% renewal rate, I’d be thrilled.

Full Article: http://morganlinton.com/is-85-a-realistic-renewal-rate-for-new-gtlds/

 

[Chetan]

i think it will be below 50% for few that has offered free or very discounted price for the first year.

 

[Optimal Names]

A lot of these gtlds will not make it if they dont get the renewals. Its simple math. The bills have to be paid and without the renewal income things will get interesting...

 

[BrandingModel.com]

IMO the first year will be around 60-70% and the following year will be below 60%.

I think only a few are worth registering few to keep for minimum of 5years if you want to speculate potential investment. .CLUB .APP .WEB and a few others. ( I own 30 gltlds in total includung .net and .org)
At least with .com we know that the renewal fees are decent and that all major corporations use .com. (facebook, twitter, forbes, cococola, google etc)

If you spoke to people who don't understand domaining they will have no idea about the new gtlds. I have also noticed on my Samsung and iphone that when you type in a web address they both have a .com button that will pop up. This also encourages the .com with everyday users of the mobile phones...

All this is on IMO.

Cheers,
Jase NZ