What happens when or if a gTLD goes under?

[Domain Lead Finder]

What would happen to active websites under a gTLD if it went broke? What happens with the gTLD? Does it cease to exist or does some other registry take it over and keep the few customers it does have?

I have found a very interesting name on a "not-doing-good-at-all" gTLD. I do not want to re-sell it I want to develop it. So I am asking if perhaps I am walking on thin ice with this idea?

 

[Kate]

The registries must commit to a continuity plan of 3 years at least.
So a TLD is not going to be retired overnight - unless it's a corpTLD and there is zero impact on the public. Dozens of strings have already been retired.
In case a registry goes awol, or massive system failure leading to persistent non-resolution of names, the EBERO emergency mechanism kicks in.

The problem is the long term. In theory the TLD could be auctioned to another company. Several strings have already changed hands and are under new management. So it's an ordinary transaction. But there are many TLDs that are hopeless, barely viable and won't find a buyer. Then they will have to be retired ultimately.

PS: I understand that .buzz has been for sale for nearly a year and still no takers afaik. It's not the worst TLD but it has little potential. What doesn't help is the financial expectations, the minimum bid is already too high. If you have a few millions to spend there are so many better ways to invest. Why buy a string that has already proven its lack of appeal and relevance.

In conclusion, yes I think you should really consider the long-term prospects of the TLD. They are not all equal. I wouldn't be worried if the TLD is .club, at least it has a clear purpose and identity even though it's still a weak TLD in relative terms. If we are talking about .horse or .persiangulf you shouldn't be surprised if they pull the plug in 5 years.

 

[guillon]

Hello Kate, I am interested here: how do you know that the minimum bid for .BUZZ was too high?

 

[Kate]

There is a PR that was released, and said "closed-sealed auction with a minimum reserve bid of $3,500,000 USD.": https://www.prlog.org/12604316-dots...zz-auction-scheduled-for-december-8-2016.html
Details: http://dottba.com/buzz-auction/

When I say it's overpriced it's just my opinion but I know I am not alone.

 

[guillon]

Thank you.

 

[carob]

In case a registry goes awol, or massive system failure leading to persistent non-resolution of names, the EBERO emergency mechanism kicks in.

Has this happened yet? Just wondering if we know it works. If a company goes bankrupt it may not care or may not have the funds to keep things going.

If an extension is passed to another company there is nothing stopping huge increases in renewals, especially if they just plan to shut it down anyway.

In fact even without solvency issues, for example just for increased profit, nothing stops a registry hugely increasing renewal fees or reclassifying a domain as premium and taking it back or trying to - these things have happened. So it is a huge risk to build a site on one of these - you may get bled dry later on renewals, and if it dies or you don't renew it you lose all the links you built up to the domain.

 

[guillon]

Has this happened yet? Just wondering if we know it works. If a company goes bankrupt it may not care or may not have the funds to keep things going.

If an extension is passed to another company there is nothing stopping huge increases in renewals, especially if they just plan to shut it down anyway.

In fact even without solvency issues, for example just for increased profit, nothing stops a registry hugely increasing renewal fees or reclassifying a domain as premium and taking it back or trying to - these things have happened. So it is a huge risk to build a site on one of these - you may get bled dry later on renewals, and if it dies or you don't renew it you lose all the links you built up to the domain.

Not wrong.

In regard to such technical tests, the .CHLOE new gTLD is testing one of these procedures with ICANN.

 

[Kate]

Has this happened yet? Just wondering if we know it works.

There have been tests conducted, including very recently: https://www.icann.org/resources/pages/ebero-2013-04-02-en

 

[jmcc]

With some new gTLDs, it seems more a matter of when rather than if unless they are bought out. While some might survive as part of a portfolio of gTLDs, others simply do not have enough demand, based on current marketing, to make them viable. A lot of the blame for this rests completely on the shoulders of ICANN for pushing so many gTLDs out in such a short time period.

Regards...jmcc

 

[HotKey]

Some good, unbiased information in this thread for gTLD investors. Nice to see. So, it's important to consider the longetivity of the TLD itself, regardless the quality of the name.

If the life of a TLD is that susceptible to either marketing or current trends, and short on a strong consumer connection, than be wary building any sort of foundation on it. Consider the renewal costs, will they be worth it if the TLD goes bust? Consider also having a fallback name if you do decide to build.

I don't think you are walking on thin ice as long as you keep a clear picture. Unfortunately, most end-users won't have this kind of radar or luxury. If you love your name, go forth and develop!

 

[lock]

Years ago i bought webmaster dot xxx though dot new early 2000s
Then it vanished and bought it again though registerfly
These were netscape browser extensions not real gtlds but promoted by registrars. The gtld are sold not to me no first opportunity. No refunds i am aware of the risks of what may happen with gtlds.
hypothetically supercalifragilistic dot expialidocious
will be only name sold if if expialidocious was the extension.
Problem is even owning the best name in each extension won't save the extension if there are not enough sales generated.

 

[robert widener]

i always wondered about this myself