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What would change your view toward new TLDs?

Labeled as discuss in gTLD Discussion started by garptrader, May 3, 2016.

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  1. garptrader

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

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    Currently we seem to have two opposing camps - those who are adamantly against new TLDs who are pure .COMers and view all other TLDs as totally worthless and those who are heavily invested in new TLDs who believe new TLDs will be as prominent as .COM at some point in the next few years. OK there are some views in the middle.

    I am not a pure .COMer as I do hold quite a few .Net and .TV domains, a few .Info and .Org domains and even several .COM.CO domains. Some new TLDs like Miami.Condos sound cool, and living in South Florida where there are many condo residents, one could think real estate commissions of 3% on a six figure sale would pay for the domain. However, I struggled with the idea of paying a premium to acquire certain keywords and then $69/year for renewals and then needing one of the domains to sell for enough years from now to cover what I had invested in the rest - just to break even. Having seen the low sales ratio of investments even in .COM, the lack of sales over $1500, the more common tendency of sales to be low $XXX and the reluctance of end users to pay for aftermarket domains I passed.

    We now have some 16 million new TLD registrations spread across hundreds and hundreds of extensions. I do not own even one nor do I plan to in 2016.

    What would cause me to change my mind? Unfortunately, publicly-reported sales of new TLDs from the registries would clearly not be enough. I have become skeptical of many reported sales particularly amongst new TLD registries. Of course these were reserved domains not available to your average domainer. But I just don't trust the registries to provide a true picture of aftermarket demand for domainer-held new TLDs.

    What about domainer sales? If we start seeing end users buying aftermarket new TLDs in bulk that would be a move in the right direction. But I would need to see the developed site - not just a report on DNJ. A few end users with websites on new TLDs mean nothing if those domains were not aftermarket purchases. There are numerous cases of end users developing .Net or .TV or .Co domains acquired for reg fee. If you are investing in an extension, you need strong evidence there is a demand for what you continue paying for yearly.
    So what would it take? I believe I would have to see a massive shift in end user sentiment toward domain names that resulted in an explosion of reasonable offers which converted to sales for my own portfolio - even though I do not own even one new TLD. If end users finally wake up and see how a domain name can be a useful tool to promote their business, then it will make sense to more aggressively acquire domains.

    For those already heavily invested in new TLDs, it will ultimately come down to sales (just as I have seen with .info, .biz, .net, .TV). If your new TLD sales exceed renewal costs, you will retain a large portion of your portfolio. If not, you will gradually let lower-quality keywords drop. As the years pass if sales continue to disappoint you will drop all but your best domains which may mean you drop 90% or more of your new TLD portfolio. Time will tell.
     
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  2. Jurgen Wolf

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

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    Yes, already dropped tens of nTLD-domains... I don't see serious endusers here... At least as of today... Time will tell...
     
  3. bmugford

    bmugford www.DataCube.com PRO ICA Member VIP ★★★★★★★★★★

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    I would change my mind if an active end user market appeared, as did steady (non-registry) related sales.

    Almost all the large sales are registry related. Investors own millions of new extensions and are rarely replicating these high dollar sales. I see many of these high dollar reported "sales" as PR stunts.

    Also, the registration and renewal prices would need to be lowered and stabilized. I see no reason to have variable renewal fees. The renewal fee should be the same across an entire extension.

    I would also want registries to agree in writing about drastically re-pricing renewal fees on currently registered domains. It has already happened that some new registries have raised the prices. I would want a guarantee, not some non-binding "We don't plan to raise prices" statement.

    Right now most quality new gTLD have higher renewal prices than legacy extension and way less demand.
    I don't see the value proposition as an investor.

    Brad
     
  4. Asfas1000

    Asfas1000 Active Member VIP

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    End user demand, what else..
     

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