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Is it good to invest in nGTLDs as a beginner?

Located in gTLD Discussion started by Vinay Pandit, Aug 26, 2018.

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  1. Vinay Pandit

    Vinay Pandit Established Member

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    Hey everyone,

    I'm new to this industry and sold my first three .net domains and I'm constantly looking for new ways to sell domains.
    However as everyone knows getting a good domain is pretty difficult also expensive for newbies like me.

    I've tried to acquire .coms but almost every good domain is taken so i decided to invest in only .net domains but now .net domains are also taken.
    I've been doing some research and found out that there is opportunity to grab some cool domain names in New gTLD like .online , .store .co but after I'm confused. Should i go for new gTLDs ?
    I'd really appreciate some expert advice on this.
     
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  2. MarketingStrategies.com

    MarketingStrategies.com Upgraded Member Gold Account VIP

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  3. Jurgen Wolf

    Jurgen Wolf Top Member VIP ★★★★★★★★★★

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    I never had any good/reasonable inquiries regarding .online
    The same I can say about .club
     
  4. garptrader

    garptrader Top Member VIP ★★★★★★★★★★

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    Yes it is very difficult to acquire quality .Com domains at low prices. That is why they sell at much higher rates than domains in other extensions. The biggest issue I see with newbies acquiring domains in the new extensions is that they do not have a good sense of what makes for a desirable keyword - a domain that a business would actually want to brand on and be willing to pay a premium price to acquire. Many newbies load up on hundreds of new TLDs that even iF they were .Com domains would still be undesirable. While I would generally advise against .Net if you have sold three for three in .Net your batting average is far above the industry average - close to 1% annually.
     
  5. NYJimbo

    NYJimbo Domain Re-Animator Gold Account

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    Not sure what your budget is, but you might do better with some well researched Godaddy closeout/buynow of .com's rather than buying ngtlds someone is selling at a premium.
     
  6. Vinay Pandit

    Vinay Pandit Established Member

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    Thanks for sharing your thoughts :)
     
  7. Vinay Pandit

    Vinay Pandit Established Member

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  8. Deepak Bhandari

    Deepak Bhandari Established Member

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    i got some inquiries for my .club domain, but waiting for best
     
  9. Vinay Pandit

    Vinay Pandit Established Member

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    I'M doing outbound reach to find right buyers for domain names , however i need a soild reason to convince prospect to redirect his/ her sh*tty domain to redirect with my own shorter sweet nGTLd domain.
    I'd love to hear some expertise on this deepak :)
     
  10. domainer111

    domainer111 Established Member ★★★★★★★★★★

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    Dot com only imo. The reason they are hard to get is a sign of value.
     
  11. Premiums

    Premiums find.ventures

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  12. anantj

    anantj Active Member VIP

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  13. MetBob

    MetBob Active Member VIP

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    Thanks for your question, @Vinay Pandit. I am sure you will, as already, get mainly no.

    I would answer that it may seem a simple question, but like most good questions, the answer is complex. I would suggest the following.
    1. Traditionally the vast majority of sales and revenue are in .com (with .net and some cc important but far behind). That has remained so over many years, including the few since the majority of new extension introductions.
    2. The odds of any particular name selling is low in any extension, but is lower in new extensions than com/net by some factor of the order of 4 or 5 - i.e. it is harder currently to sell ngTLDs
    3. It is true that if you compare only to net/org and scale those and the ngTLDs with how many domains are registered/forsale, that the revenue per domain in 2018YTD is similar (slightly favour new extensions). If you take out the 55% or so of that revenue that is registry, then net/org lead but not by much actually.
    4. When they do sell, even when you take out the registry sales of premiums, the average prices paid are similar. For example if we use only Sedo sales here are the average sales prices (data almost up to date did this fora post a few weeks ago): com $4776; co $4426; io $3889; tv $3516; org $3305; all ngTLDs $3106; net $3086; info $2243; biz $2096. If you take the whole market (i.e not just Sedo) average sales prices for ngTLDs are higher than legacy although extracting registry sales is challenging.
    5. Even taking into account the above, there can be good reasons to invest in ngTLDs such as you want to diversify a portfolio since this business is hard to predict, you see an opportunity with a specific domain, you see opportunities to open up new markets for domains (e.g. domain phrases in marketing as done by Names.of.London), or you have niche expertise particularly related to one or more off the new extensions. I do see that there are some hopeful signs in new extension trends.
    6. IF you do decide to invest in ngTLDs it is important to see what is selling. While some multiple words have sold for good amounts (like AirConditioning in online this month), most that sell are single word or short acronyms and mainly where the single word matches the extension well (e.g. pure_gold or live_fit from the last month), or the single word is highly valued (e.g. blockchain or casino). NameBio can be readily used to generate a list of what has sold in ngTLDs in 2018. You may find my monthly new extension sales analysis reports helpful too (e.g. most recent one at this link). I would also read the ngTLD appraisal thread by @lolwarrior here on NamePros for advice.
    7. If you do seriously consider entering new extensions it is important, as with all areas of domain investment, to do your research before jumping into many domains. I would urge you to analyze and follow sales in new extensions for a while before deciding whether to purchase.
    I have tried to answer the question in a balanced and objective way. If I was giving a "pro new extension" view on why you should, I could have done so (and have here and here among many others :xf.wink:).

    If your main reason for considering new extensions is because you are finding it difficult to find good net, I would probably not move into new extensions (although it might be a reason to consider org or co or io or something else for part of your portfolio). If you want to add a few quality new extension domains to help diversify your domain portfolio, that makes perfect sense to me. Below is the balanced advice re new domain extension that I ended my last monthly report with:

    "It is still prudent to be cautious with investing in these extensions, and still true that overall the return on investment seems better in .com. The difference is narrowing, however, and if the comparison is with other legacy extensions, or country code extensions, the case for new extensions could be made (although is still arguable)."
    The very best wishes for your continued success in the domain business, no matter what you choose to do!

    ps I have answered this using ngTLD for the new extensions introduced in the last 4 years, as is normally done. I note that the OP, and some others, use the term more generally for all extensions outside the main legacy ones. I note that the OP included .co in the list, but that is not a new extension (a general availability cc). Nor are things like .pro, .biz, etc. that were earlier introduced.
     
    Last edited: Aug 27, 2018
  14. Kate

    Kate Domainosaurus Rex VIP ★★★★★★★★★★

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    Look at what sells, that will tell you what is in demand and what to buy.
     
  15. wizarduk

    wizarduk Established Member

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    Quick answer NO !
     
  16. kriss05

    kriss05 Top Member VIP ★★★★★★★★★★

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    Investing in ngtlds is profitable business like investing in any other kind of domains, if one knows what he is doing.
     
  17. Furquah

    Furquah The Captain VIP

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    Money always in Domaining. You need to be smart & know what you are doing. Whether its nGtld, NccTld or .com

    Pickup the right name you will be success.

    Personly I recommend you investing in .co this extenstion is on fire.
     
  18. Vinay Pandit

    Vinay Pandit Established Member

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    I've been thinking about .co but I've read some post about it saying it is not good and renewal cost is also high,

    I wanted to invest in nGTLds like Provide.solutions and more.. Lemme know more about it please.
     
  19. robert widener

    robert widener Established Member

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    i love the new gtlds:xf.smile:
     

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