Twenty months after the launch of the first new batch of gTLDs, the registration numbers show many interesting things.
Top placement for XYZ, which holds 15% of the total, despite allegations for a “massaging” of the numbers via a Network Solutions promotion.
Totaling more than 7 million registrations, each one of the top 30 gTLDs have a minimum of 40,000 domains per zone file to be included on that list.
These numbers pale in comparison to the dot .com behemoth, or even .net and .org domain totals. Launched 25 years ago, dot .com has over 120 million domain registrations, and while millions drop every week, they soon get replenished.
Right before the launch of the new gTLDs many traditional domainers worried that the new Internet namespace would pose a threat to their business.
The numbers so far show that very little has changed in how domains are perceived by end users. If a particular domain isn’t available, the option to register an alternative name is still the top choice. While some will move to the new gTLDs under that same keyword, there is so far very little awareness of the new gTLD domains by the general consumer public.
The onus is on the domain Registries that have opted to promote their wares internally, for the most part, with few exceptions. Promoting the availability of every kind of keyword, character length and combination thereof in a multitude of gTLDs, has been targeting domainers.
Surprisingly, there seems to be a balance between those that seek to register an alternate domain in new gTLDs, and those that demand that only .com should be a branding option. Naturally, outside of the US the ccTLD crowd is doing business as usual, unfazed by the drama.
On average, sales of com, net and org domains have never been stronger. Record sales have been completed throughout the launch of the gTLDs, showing that there is no slowing down of the economy due to gTLD alternatives.
At a micro-level, some types of niches might be affected, particularly those that focus on verticals whose second keyword part exists as a gTLD. That’s another reason for domain investors to diversify, instead of putting all their eggs in the same basket.
It’s still very early to tell what will be the breaking point of the current gTLD namespace. As Registries commit to a 5 year sustainability agreement with ICANN, by that time we’ll see whether some decide to call it quits. At this moment, what the industry needs is more education on the availability of .com alternatives, along with active marketplaces to ensure a flow of investment capital.
Domainers that prefer to stick to the “good old” options have nothing to be afraid of; they need to be more open-minded, however, and to keep an eye open for any future developments.
I don’t know the precise figure but I am fairly confident that the majority of domains held in any TLD including .COM are held by investors. Many of my sales have gone to investors / developers (not multi-billion dollar companies) so when millions of domain names in TLDs which did not previously exist are purchased over a short timeframe, that means there will be less capital available to invest in more traditional extensions. Perhaps there is merely a decline in the demand for domains which aren’t one-word or LL/LLL .Com as it would seem my portfolio quality should have improved somewhat with time / experience (not claiming to have a portfolio which allows me to live off domain names). Sales trends are not favorable…
In 2010 I had 13 sales of ~$500+
In 2011 I had 11 sales of ~$500+
In 2012 I had 8 sales of ~$500+
In 2013 I had 8 sales of ~$500+
In 2014 I had 7 sales of ~$500+
Through ~70% of 2015 thus far I have only had 3 sales of $500+ (one of which was sold way too cheap but buyers with open wallets in 2015 are rare)
So how can I invest hundreds of dollars in a new TLD domain with premium renewals when only a small portion of a portfolio turns over annually, my median portfolio sales price is under $500 and sales over $1000 are rare? I don’t see the investment value in new TLDs though registries are a business and will promote their products/services like any other business.
Great point towards the end of the post. I agree with that type of mentality, Do not be afraid and keep focusing on .Coms etc but also just keep an open mind towards future developments.
If we see one of the new GTLDs picking up a lot of steam in popularity etc and we have the chance to purchase some great names at a reasonable price why not. I would see it as a long term investment.
It is the same type of thinking people had buying watermelon.com back in the day only to have it worth millions now.
– Will