information Let’s be honest, what’s the chance that all the new domain extensions fail?

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I’ll start this post by saying I’m a huge fan of .COM, most of my investment dollars go into .COM and when anyone asks me what to invest in now I tell them .COM. That being said, I hear a lot of people saying that the new domain extensions are going to fail, some have even declared that they’ve already failed. Heck I’ll just be blunt, I think that’s a bunch of BS.
I think the real challenge is that domain investor who want to play the short game are losing with new domain extensions because they don’t currently have the same liquidity as .COM. I think the issue here is a real dose of realism. When .COM initially launched people didn’t think the Internet as a whole was going to take off, and rewind 15+ years and buying and selling things online was cutting edge, still most things were purchased in stores.
The big question is, how are you going to position yourself and your own portfolio during this time to make sure that you don’t kick yourself for ignoring the opportunities that are in front of your face right now...
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The views expressed on this page by users and staff are their own, not those of NamePros.
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"The big question is, how are you going to position yourself and your own portfolio during this time to make sure that you don’t kick yourself for ignoring the opportunities that are in front of your face right now..."

I think it is important to buy cheap, and with standard renewals. One should also understand that new gTLDs are mostly not suitable for "short term", so there should be budget for 3-5 years of renewals, min.
 
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The issue with new GTLD's right now are the lack of universal terms, and fundamental organizational stability of all of the different companies running each extension every which way.

If a company is not doing well, they are selling $1 registrations, many being bought by spammers, and weakening the extension.

Also an issue is goodwill among industry professionals, which was greatly eroded with the .blog release.

Many tech industry related employees felt alienated by the process of purchasing pre release, only to find out they had been gamed by the registry, and exploited on their thoughts, and ideas. This is a big mistake, as these are innovators you need to use, and advertise your extensions.

With .com, I have stability of one price renewal, I have constant framework of contractual agreements held by one party, and if something doesn't smell right you better be sure it will be dealt with fairly, as it affects 127M names.

This should have been a breakout year for GTLD's, sure when you have a domain like Personal.Loan it stands out, but MyPersonal.Loan is an eyesore, where MyPersonalLoan.com is more consistent, instead of breaking keywords in the middle.

So is it consistent with .com, or give, and take with gtld in certain situations?

The guys that get it, have already bought the quality domains, at somewhat rich renewals, but transferable, but with some of the recent stuff the registration numbers are getting weaker, and prices are going up, and the annual premium renewal is keeping many away.

Charge upfront, instead of a tax for life, this is where .com excels on keyword quality, and then flat renewal, in it's consistent aftermarket.

I have investments on both sides of the equation, but by far .com is running away with it right now, gtld's are a struggle to renew, and respond to low ball offers. There are just to many other options for startups, and others to pay up. Unless you get a serious end user who has to have that term, it is a tough sell at times.
 
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I believe industry average portfolio turn is currently no more than 1% annually - 100 years of inventory.
A gallon of milk or bunch of bananas at the grocery store has probably been there no more than a few days.

How long can the average domainer continue to pay renewals with only an occasional sale particularly if they have premium renewals?
 
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I believe industry average portfolio turn is currently no more than 1% annually - 100 years of inventory.
A gallon of milk or bunch of bananas at the grocery store has probably been there no more than a few days.

How long can the average domainer continue to pay renewals with only an occasional sale particularly if they have premium renewals?
Well, you can buy nice keyword in .com in re seller market for 10k, then wait few years, and receive 200k for it when end user will come..that happens and that is what makes domaining fun. Or you can buy very good new gTLD for 1k now with 1k yearly renewal, wait for ten years (holding costs are 10k then) and sell it for 200k too..not big difference between 2 scenarios (which are not for average domainer anyway, because average domainer does not have 10k for purchase of .com or 1k for purchase of new gTLD...this is for top 1% of domainers). So, if average domainer will buy domains with premium renewals, answer for your question is that he can not hold them for long - usually it is only first year. But I guess everybody knows that :)
 
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Good article IMO, it can be debated until were blue in the face. :xf.wink:
 
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How long can the average domainer continue to pay renewals with only an occasional sale particularly if they have premium renewals?

What I have found is even a churn and burn affiliate site can make renewals back. Granted the premiums could be more difficult, but I wouldn't say it to be impossible if you know what you are doing.

Many just buy and throw a parking page with ads up stating the name is for sale, complain about not making any revenue thus cannot justify the renewals while waiting for the end-user. When in reality we need to become end-users ourselves , at least for the temporary time while waiting, and develop the name. If a company really wants your name, they will look up the whois. And this approach still doesn't restrict your outbound email efforts.
 
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This is an optimistic outlook on several counts.
First of all, the definition of success and failure varies from one person to another.
Not 'failing' doesn't mean having success either.

Liquidity issues set aside, the assumption that domain names will increase in value as investments is often wrong. The value of domain names can stagnate and even decrease over time.
The best example is .mobi, that has become worthless yet witnessed 6-figure sales.

Think about the 'smart' guys who bought .biz and .info domains when they were released 15 years ago. Today they will struggle to sell those and might not even recoup the renewal fees. Being early, being patient are the features of a good domainer but this is not enough.

The question you should be asking is whether new extensions are going to make you money and how.

Well, you can buy nice keyword in .com in re seller market for 10k, then wait few years, and receive 200k for it when end user will come..that happens and that is what makes domaining fun. Or you can buy very good new gTLD for 1k now with 1k yearly renewal, wait for ten years (holding costs are 10k then) and sell it for 200k too..not big difference between 2 scenarios ...
Assuming that new extensions are going to rise in value like .com sounds like wishful thinking. Especially when the scarcity has gone. The dynamics at play are not the same.

And if you buy a domain name with a 1K yearly renewal, you're buying a liability. It will rest on your hands until your savings are dried out. This is an awful proposition imo.
 
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Let’s be honest, what’s the chance that all the new domain extensions fail?

depends on how you define failure .. failure = bankrupcty? Failure = failing to sell?

.mobi did not fail. It still has many registrations but it does not sell. .tel didn't fail either, it does still exist.

I think many extensions might turn out to be failures meaning they will not sell well or sell at all. One of the most obvious examples is .fail for example.
 
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There is opportunity with the New G's, just like every other extension. Not every extension can be a Lamborghini like .com, but many people make a living selling Kia's....
 
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There is opportunity with the New G's, just like every other extension. Not every extension can be a Lamborghini like .com, but many people make a living selling Kia's....

right.. just like some people manage to sell .tv it's not easy though. With the nGTLD program you have many .tv like extensions = more opportunity but also more competition.

lolwarrior said:
Well, you can buy nice keyword in .com in re seller market for 10k, then wait few years, and receive 200k for it when end user will come..that happens and that is what makes domaining fun. Or you can buy very good new gTLD for 1k now with 1k yearly renewal, wait for ten years (holding costs are 10k then) and sell it for 200k too..not big difference between 2 scenarios (which are not for average domainer anyway, because average domainer does not have 10k for purchase of .com or 1k for purchase of new gTLD...this is for top 1% of domainers).

It's just that the latter is far riskier IMO. If you don't sell the .com you might be able to sell it for 10k to another investor.

If the .nGTLD does not sell it will be very hard to find someone paying 10k for a domain with 1k/year renewals.
 
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right.. just like some people manage to sell .tv it's not easy though. With the nGTLD program you have many .tv like extensions = more opportunity but also more competition.



It's just that the latter is far riskier IMO. If you don't sell the .com you might be able to sell it for 10k to another investor.

If the .nGTLD does not sell it will be very hard to find someone paying 10k for a domain with 1k/year renewals.
Just because a domain is a .com doesn't make it easy to sell. It doesn't matter what the extension is if the domain is junk. There are many .coms that will never be sold...No matter what the extension is, quality is the key. A good quality New G is easier to sell than a low quality .com....
 
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Honestly I am not friend of 1k renewals when it comes to my domains. I buy personally only domains which has standard renewals, and there are some opportunities even today, but lot of research is needed to acquire good name with standard renewal. You can either hand reg these types of names (these days it is already almost impossible, but in 2014/2015 this was well possible, as registries were also just starting and did not have experiences which they have today), or you can drop catch, or buy from other domainers, mainly from those with poor budgets and few days prior renewals.

But one can not say that 1k renewals (for example) are huge..there are some people out there for whom 1k are peanuts, 10k are peanuts, 100k are peanuts..they can acquire such names and trade with them. But most people can not , and can only be profitable when they are getting good names for standard renewals (ideally around $20-30/year).

"Assuming that new extensions are going to rise in value like .com sounds like wishful thinking. Especially when the scarcity has gone. The dynamics at play are not the same."

I do not care if new extensions as such are going to raise in value or not. I care if particular combo (keyword1.keyword2) will rise in value. You can have only few good combos per most of new extension, remember that :)
 
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Honestly I am not friend of 1k renewals when it comes to my domains. I buy personally only domains which has standard renewals, and there are some opportunities even today, but lot of research is needed to acquire good name with standard renewal. You can either hand reg these types of names (these days it is already almost impossible, but in 2014/2015 this was well possible, as registries were also just starting and did not have experiences which they have today), or you can drop catch, or buy from other domainers, mainly from those with poor budgets and few days prior renewals.

But one can not say that 1k renewals (for example) are huge..there are some people out there for whom 1k are peanuts, 10k are peanuts, 100k are peanuts..they can acquire such names and trade with them. But most people can not , and can only be profitable when they are getting good names for standard renewals (ideally around $20-30/year).

"Assuming that new extensions are going to rise in value like .com sounds like wishful thinking. Especially when the scarcity has gone. The dynamics at play are not the same."

I do not care if new extensions as such are going to raise in value or not. I care if particular combo (keyword1.keyword2) will rise in value. You can have only few good combos per most of new extension, remember that :)
I agree with you for the most part. However there are some super premium New G combos that have renewals + or - $200 that are investment grade....Many of these are the best combos in a particular extension and will be very valuable to end users...Example being Computer.Technology. Renewal around $150 but an end user won't even consider that renewal due to the quality...Donuts seems most reasonable on many of the New G combos. Just my opinion.
 
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This is an optimistic outlook on several counts.
First of all, the definition of success and failure varies from one person to another.
Not 'failing' doesn't mean having success either.

Liquidity issues set aside, the assumption that domain names will increase in value as investments is often wrong. The value of domain names can stagnate and even decrease over time.
The best example is .mobi, that has become worthless yet witnessed 6-figure sales.

Think about the 'smart' guys who bought .biz and .info domains when they were released 15 years ago. Today they will struggle to sell those and might not even recoup the renewal fees. Being early, being patient are the features of a good domainer but this is not enough.

The question you should be asking is whether new extensions are going to make you money and how.

Assuming that new extensions are going to rise in value like .com sounds like wishful thinking. Especially when the scarcity has gone. The dynamics at play are not the same.

And if you buy a domain name with a 1K yearly renewal, you're buying a liability. It will rest on your hands until your savings are dried out. This is an awful proposition imo.

most domainers thought .mobi and .biz failed, but someone who purchased .tv might earn some money, it is a business TLD now, although it was a ccTLD before. .info is ok, we also can see some [key word].info sold on sedo at a high price.

the meaning of extensions must be considered into whole domain names, so some new gTLD will be successful (but most of them will fail).

i just want to say, when ppl face an unknow future:
a. stupid guys curse it and try to broke it, stop it.
b. Mediocrity stay far away from it
c. smart guys analyse and try to separate gold from sands, then take the gold ,leave the sands.

if u can afford the cost, why not try to register some new gtld domainnames,
i think [prefix].[suffix] -- prefix and suffix fit each and make sense, such kind domainnames are good ,

clever.pet
firemen.club
trump.win
mmofreegames.online
savage.games
ele.me (means "r u hungry" in mandarin)
join.me
about.me
...
they are better than .com and .net , com and .net ,even ccTld in whole domain names are
redundant.

and if u also can register some "domain hack":

dr.one
iph.one
car.pet
pup.pet
alpha.bet
x.men
.....
they r not mainstream, but can be sold at high prices .
 
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https://namestat.org/rip

Total Domains 1,980

https://namestat.org/fail

Total Domains 2,571

https://namestat.org/whoswho

Total Domains 73

https://namestat.org/onl

Total Domains 4,502

https://namestat.org/rich

Total Domains 82

https://namestat.org/tube

Total Domains 1,560

https://namestat.org/archi

Total Domains 2,722

https://namestat.org/okinawa

Total Domains 2,852

In my opinion many extensions won't be profitable and might be shut-down sooner or later.

Who will build on an extension that could be shut-own any time? See what CentralNic did with some of their LL.com subdomains.
 
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I do think that there is opportunity with ngtlds. I dont think profitable domain investing works with premium pricing.

I believe that regardless of extension, if certain principles are used, profitability is probable.

Profitable domain investing requires strategy, knowledge, dedication, and well...good domains.

For a domain "investor" there should be one goal... Moving up. Start with a small budget...flip and profit..save up...buy better names.. Start with solid, quality hand reg when you find specials, then flip for double or triple. Work up to the ultimate goal..LL, LLL, LLLL, NN, NNN, NNNN...com. Thats what i try to do.

Sure, the new gtlds are fun but right now they are so new that they should be a very small percentage of an investors portfolio. Simply much higher risk. Not a bad thing except they should be really cheap and they sometimes arent.

I would never, for investment, pay a premium price. Thats just not smart investment based on most investment strategy on planet earth.
 
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most domainers thought .mobi and .biz failed, but someone who purchased .tv might earn some money, it is a business TLD now, although it was a ccTLD before.
Speaking of .tv, investors have been badly burnt. Legacy names are stuck with legacy pricing too. This is how loyal registrants get rewarded when they try to make a buck.
The same problem exists in new extensions, registries can jack up the price and turn the table on you.

I am surprised domainers are still willing to take a chance on premium pricing, apparently the lessons of History do not suffice.

.info is ok, we also can see some [key word].info sold on sedo at a high price.
.info sold at a high price, it doesn't happen often.
Who has consistently made good money on .info ?

i just want to say, when ppl face an unknow future:
a. stupid guys curse it and try to broke it, stop it.
b. Mediocrity stay far away from it
c. smart guys analyse and try to separate gold from sands, then take the gold ,leave the sands.
Maybe end users are stupid and mediocre, because they are not getting it. Maybe they know better.
Somebody who doesn't acknowledge the present will suck at making future predictions. Domainers like to gloat about the bright future that awaits them, it's wishful thinking and waiting for a miracle to happen. There isn't a lot of interest from end users, and limited demand. Even legacy extensions are still undervalued.
The whole game is rigged and tilted to the interests of the registries. It never was meant for domainers.

and if u also can register some "domain hack":

dr.one
iph.one
car.pet
pup.pet
alpha.bet
x.men
.....
they r not mainstream, but can be sold at high prices .
Right, they are not mainstream and we are not seeing frequent sales either.

dr.one => can't be registered (ONE domains must be at least 3 characters.)
iph.one => a TM, seriously ?
alpha.bet => reserved

It's more gambling than investment in my view.

I would suggest that cheerleaders use a new extension for their business, I mean a real business in the real world, so they can measure the challenge of using an adverse extension (like this or this).
Then we'll talk.
There are so many assumptions about what end users should do. But they didn't ask for all those strings in the first place.
 
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With even 4L.com domains slowly coming down in price in the aftermarket, how can anyone expect that ngtlds will bring solid returns. Quality over quantity...right?

I would always rather have a few great domains than 100 almost useless domains. As stated by Kate, the new gtlds registrars have pretty much rigged the system. Hard to work with premium prices.
 
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funny :xf.wink:

.Com Domain Registrations Back Under 128 Million

Verisign is reporting that the number of .Com domain names in the Domain Name Base have fallen below 128 Million.

Back in September of this year we reported the number of .com domain name had broken through the 128 million mark for the first time.

source : http://www.thedomains.com/2016/12/16/com-domain-registrations-back-128-million/

ccTLD Takeover: Country Code Domains Sweep 13 of 20 Spots on This Week's Sales Chart
Only Four Go to .Coms


source : http://www.dnjournal.com/domainsales.htm

.com ???
 
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