NameSilo

New gTLDs and Instant Value

Labeled as discuss in gTLD Discussion started by HotKey, May 22, 2019.

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486

  1. HotKey

    HotKey Made in Canada VIP

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    Consider refraining from pricing your new G at extraordinary prices. They have not yet earned the same authoritative appeal or trust that their brother-in-arms, dot-com, has, and it may yet take some years before they do. By giving your new gTLD a 50k price tag the minute you register it, actually just cheapens it, not to mention makes the rest of us investors look like fools.

    Being newcomers to the domain name world, most new gTLDs have to work their way to value. I think by creating a proven track record is the only road to success in the domain market. Although sometimes its compared to real estate, or even panning for gold, where one may be lucky and pick up an instantly valuable name, web estate doesn't really work that way. Usually a domain must change hands a few times, reworked and re-marketed before its recognized as valuable. Although that gold nugget or diamond in the rough may have initially been found by a savvy investor, investors are not always the right people whom determine its worth.

    Letting a few beauties sit and percolate for a few years while we determine the final price tag, either by multiple offers throughout the years, demand in the extension, or related keyword sales, is all fine and dandy, and to each investors prerogative; however for the most part I think it is essential to understand that all new gTLD's DO NOT have instant value, and we shouldn't be pricing them as such. We doing ourselves a disservice and only hurting future growth and stability by thinking that it is OK to add a 5k, 10k, 50k or 1m price tag to our mediocre names.


    Substance vs Hype?

    If we think hyping up an extension we're heavily vested in or a single domain name we wish to add instant value to is the same as substance, think again. There will always be efforts to hype up something we wish to see sell or grow, but unless we want to invite ridicule, be prepared to add some quality substance to our method of exposure. Some examples would be sales data, barring that, real world usage scenarios or common sense applications for said names. Semantics also matter, it plays a part in bridging the gap between content and the exact-match new gTLD.

    Giving reasons for why we have invested in what we did opens positive discussion and learning on both sides of the playing field. Giving substance to a marketing effort or to a thread here on NP takes away from the hype. I generally avoid threads that have an empty topic start and leave the rest of us wondering what exactly the intent was. Same as avoiding flashy banners or sites that are all shine but no substance. Adding substance invites quality feedback, and helps keep out the hype which is just a balloon waiting to pop, and ends up disappointing a lot of people in the end. And then this will just keep people away in the future from substantial discussions. We are just hurting ourselves.

    Instant Value?

    Granted, there are definitely new G names that have instant value. But they are few and far between. Don't we all wish we carried them in our portfolio? Not gonna happen, not now not never. For the most part they are either priced for end-users by the registries themselves whom are also now domainers, or they are already snapped up by someone. These are the perfect EMDs. Just one look at them and it tells you. Similar to super-premium .coms, it doesn't take a rocket scientist to figure out the value.

    But lets not make the same mistake that thousands of investors make in the .com, and that is giving instant value to a name that has none, or at least very little. And now the market is burgeoning with these types of names. Because this is the road we are headed down with new Gs, the exact same story. And then the market will be so saturated with worthless, yet high-priced new G's that the ONLY names that will carry any credibility will be those perfect EMDs solely sold by the registrar. And then where does that leave the rest of investors?

    Perfect emds are not the only quality names out there, many of us have amazing names that have been crafted that fit just fine together, left to right of the dot. We have to consider that most these names should be sold less than 1k, and perhaps between 1-5k on very special, high-quality names. How to judge the value of your name? Leave that up to you, but a couple of indicators are fresh regs and renewal pricing and has the name changed hands in the past, where its built up value. We forget that sometimes having attractive pricing, along with the right name, albeit sacrificing potential greater profits, is the best exposure we can give a name. Not an instant 50k price tag. By allowing most our new G's to change hands a few times or an end user to build on, creates the exposure they need to better allow for the nuggets in our portfolio hit their true worth.

    What are we up against?

    This, right here:

    https://premium.domains/

    When I first discovered this site, I thought to myself, holy crap THIS IS HOW ITS DONE! What domain investor is this?? This is someone who know what they're doing. And not just the quality of names, but the layout and presentation of the site is fabulous. Well, some further quick digging, turns it is owned by a registry, and the site is dedicated to selling their new G's! Completely bypassing traditional methods, ie via a registrar. What else does this bypass? Us. Sure they mention domain investors are welcome to their names. This is what we're up against, and let me tell you, most of the names you and I carry DO NOT have the instant value that is immediately evident upon visiting this veritable gold mine. That place scares me. Excites me too though, I mean seriously a kick-ass site.

    So, we must price accordingly! Build trust. Invite turnover or development with realistic value.
     
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  2. NameLlama

    NameLlama Established Member

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    Consider refraining from pricing your recently registered .coms at extraordinary prices. They have not yet earned the same authoritative appeal or trust that premium .coms has, and it may yet take some years before they do. By giving your newly registered .com a 50k price tag the minute you register it, actually just cheapens it, not to mention makes the rest of us investors look like fools.

    And now the market is burgeoning with these types of names. Because this is the road we are headed down with hand regs .coms, the exact same story. And then the market will be so saturated with worthless, yet high-priced hand eggs that the ONLY names that will carry any credibility will be those truly premium .coms.


    Cannot beat them, they are allowed to rig the game, so it is a dumb game to play
    Too bad so sad
     
    Last edited: May 22, 2019
  3. HotKey

    HotKey Made in Canada VIP

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    It's funny you say that.. my career I've been at approx 15 years. I joined because love of the craft. The company I work for has been around for over 100 years, they define the telecom industry in my country.

    A few years ago, they revamped the system, so that each and every one of us became a "number". We're graded on efficiency and output. Not how well we do the craft. IE, quality. I'm a trainer in my career. I used to teach the new kids, it's quality over quantity. Care about your craft, learn it and do it well.

    Well, since the revamp, guess what happened? Jobs are sh!t. Workers go as fast as they can, taking whatever shortcut they can. To meet these "numbers'. It is goddam sad. My philosophy of quality over quantity, in my career, no longer applies. If the work falls apart in a year, no one cares, because it was good enough to meet the numbers for the quarter.

    I almost had a mental breakdown at one point, couldn't stand what was happening and the stuff I was seeing out in the field. Brought it up to my boss and his boss. Guess what they told me? I was completely right, but I had learn to "play the game". Learn what makes the numbers, in turn it makes the shareholders happy. WTF??

    This is where we're at, and is this where we're also going in the domain industry? Go with what sells and not with what makes sense? I don't know. Fine it's a game, but honestly I really love a good name, and I bet there's thousands if not millions more out there that do too. You're right, they are allowed to rig the game, but my suggestion is this, if you believe in the the name, make that YOUR game. But price it right, lol.
     
  4. GenericDomainz

    GenericDomainz Established Member

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    First of all - domain is really Premium:):):) Website is clean, nice, quite professional, but a little blank, it not seems live, highly visited, there is no life in it, for now.

    Also - it has only #28.000.000 SimilarWeb rank, about 20 visits/day.

    And for "Premium Domains" there are too few domains - 100-200 domains.
     
    Last edited: May 23, 2019
  5. Bob Hawkes

    Bob Hawkes formerly MetBob NameTalent VIP

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    While I know some will legitimately argue for those instant prices, I agree with the levels you suggest that most good new gTLDs should be priced at and the idea time will need to pass before new gTLDs will be in price category of com, if ever.

    Thanks for the link to the premium.domains site that I did not know about. Donuts (who own this site) are doing a good job and clearly with their premium names have a pool which no one else can be in same league with.

    Bob
     
  6. lolwarrior

    lolwarrior Founder, Brands.International VIP

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    Thanks for the link to premium.domains @HotKey , seems nice, and certainly great inspiration for me also in terms of design, lol :)

    Also I guess great inspiration for everyone who would like to learn what ARE great new gTLD combos!

    As for pricing, I respectfully completely disagree with you, however : I personally think each domain investor can price their domains as they please and desire, BUT of course, they should be able to sustain their renewals in case they give pricing on the higher side ....

    Personally I price many of my domain names highly, well knowing that it is dramatically reducing probability of sale...but I also think that for me it would be great still to keep some names in 20 years from now...so this is the reason. If one wants / needs to sell quickier, the price must go well down, and even then nothing is guaranteed of course. But to invest, usually means to be able to hold for longer by asking higher prices, and be able to say NO to many low offers.
     
  7. HotKey

    HotKey Made in Canada VIP

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    Totally- everyone can price as they choose, it is their name/portfolio., and who am I to tell you? :)

    I guess the post was geared to the hopes that there may come a time when most of us new G investors are more like-minded when it comes to placing value on our names, consistent with their quality, rather than thinking every name is worth holding at immediate high value. Sometimes it takes a change of hands for value to grow, other times as you mention it takes time, and other times we have to accept the fact not are names in our portfolio are equal, and it would only help grow the new G domain market by releasing more of our names at attractive "beginner" pricing, so to speak.\

    If we religiously hold our names at super-high costs, it will drive folks to seek cheaper, longer alternatives in the .com, for example, and keep the sub-par market, well, sub-par. We should also be able to attract each other, not just end users, in regular trading.

    I guess question is who will be the guinea pig and start re-examining their portfolio? I guess most of us have a adopted a sit-and-wait strategy, where eventually much more that that will be needed unless we're just looking for new G' trophies to line our shelves with.
     
  8. Grego85

    Grego85 Quality.Domains VIP

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    Very nice post HotKey. I agree with you for the most part that over pricing just makes us all look bad. I have been considering going through and lowering my prices a bit (mine mostly range from 1k - 8k.) I myself rarely do any outbound because I already know the perceived value just isn't there yet, and I've always planned on being in this for the long haul.

    Sometimes when I find names in the drop list that aren't quite good enough for me to invest in, but other businesses would want because it is an exact match for them, I send them an email to let them know. I want other businesses to adopt new gtlds, because I know once they do, they will realize how much better they are than sentence long .com names. Familiarity should be our main goal, and we all have to do our part to help it along. Familiarity is all .com has going, coasting on being the default.

    Also, it would help if others didn't register such poor ngtld names. Leave the poor ones to be hand regged by cheap business owners (just like there are plenty of with awful .com names). Because itt still helps create awareness every time a mom and pop shop uses an ngtld instead of a .com. But it seems even very poor names are priced above 1000.
     
    Last edited: May 27, 2019
  9. Jurgen Wolf

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

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    I don't price my domains in 99% of cases... I prefer negotiations...
    As of today, my average price of 11 NON-Premium nTLD sales is ~$1K.
     
  10. droned

    droned Established Member

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    Which tlds?
     
  11. Jurgen Wolf

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

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    .life/.one/.top/.club/.work
     
  12. HotKey

    HotKey Made in Canada VIP

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    Commendable, planting the G seed behind the scenes, so to speak. Very good. Agreed, familiarity is key to acceptance. And has to be in a good way, where they invoke desires of ownership. Setting the right prices are positive triggers.

    I hear ya re. pricing poor names above 1k, and even leaving them unregistered. We don't have the luxury of being the default, it took A LOT of time and hard work for the world-wide acclaim the current legacy domains have, in particular .com. We can't just expect to swoop in and change that on a dime.

    Also we have to take into account, many business owners may already have, in their eyes, the ultimate domain for their brand, especially in the com. They may have taken years to acquire it or save up for it. These people aren't looking to re-brand to a new G anytime soon. Ultimately we're focusing on start-ups, very large corporations that missed the keywordkeyword.com and the keyword.keyword makes sense for them, or small to medium sized businesses where the G is a definite upgrade.
     

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