Current negotiations and delays could result in unfavorable terms for domain name investors.
A lot of domain name investors are against the wholesale introduction of new top level domain names, or at least some of the provisions attached to them. They worry that new intellectual property guidelines, a lack of pricing controls, etc. will be extended to existing top level domain names such as .com. They also worry that ICANN will crumble under the weight of legal action, throwing the entire naming system into disarray.
These are valid worries. But at this point in the game, I think any further delays and negotiation on new top level domain names will only hurt domainers.
When ICANN meets with the Governmental Advisory Committee in February, intellectual property rights will very much be on the table. I worry about last minute concessions that could jeopardize legitimate domain name owners by giving too much power to IP interests.
I should reiterate that I’m a fan of legitimate protections for trademark owners. But we often see trademark owners overstep their rights.
Frankly, domainers needn’t worry too much about IP protections built into the existing applicant guidebook. But further delays and negotiation could result in something getting slipped in at the last moment, not giving domainers a chance to respond.
Jean Guillon says
I don’t see any reason why domainers should be worried. Every time a new TLD is launched, the same does happen. Domainers are first to be served because it is their jog/hobby/work/passion/interest/… to grad domain names. They are the one to know the rules and dates for Sunrises and Landrushes before and better than everyone.
It is like trying to grab an appartment first. Surprisingly real estate pros always grab it first.
I am convinced domainers won’t be hurt…they could be hurt if 400 TLds would open at the same time. In this case there could be too many domains to grab and for the first time…not enough money !
Simonetta says
I’m much more worried that adding a lot more choice will do to the purchasing decisions of businesses in domains. There’s good reason to believe that they will opt for the cheap or free version of a new TLD presented to them by the registrar of their choice rather than dishing out the money to purchase a premium domain.
It will likely also give the search engines yet another boost as direct type in will be even less or a successful experience when there is a need for a user to remember not just what’s before, but also what is coming after the dot.
Lastly, more supply may depress pricing for domains in the market as there isn’t a surge in buyers at the same time.
If I had a large portfolio of domains already, I wouldn’t like either one of these three.
Andrew Allemann says
@ Simonetta – that’s certainly what proponents of new TLDs advocate
gpmgroup says
I’m much more worried that adding a lot more choice will do to the purchasing decisions of businesses in domains. There’s good reason to believe that they will opt for the cheap or free version of a new TLD presented to them by the registrar of their choice rather than dishing out the money to purchase a premium domain.
If your customers, competitors and suppliers are all in an existing TLD it would be a very brave marketing move to re-brand your company in a new gTLD.
direct type in will be even less or a successful experience when there is a need for a user to remember not just what’s before, but also what is coming after the dot.
This gets to the crux of the problem for new gTLDs and why they will struggle. As you say there will very likely be very few type ins for new gTLDs because most people won’t know they are even there.
For the same reason it will also make new gTLDs very hard to successfully brand for all but the largest of corporations.
For the same reason iIt also means new gTLDs will have minimal impact on type ins for dominant existing TLDs.
The more new gTLDs there are the harder it will become for people to know if a TLD even exists because there will be very few people to promote the TLD day in day out.
Most vertically integrated TLDs relying on their own sole voice for marketing to the world will quickly find out just how large the world is even with the Internet.
Lastly, more supply may depress pricing for domains in the market as there isn’t a surge in buyers at the same time.
More oranges have minimal impact on the price of apples.
gpmgroup says
@ Andrew
These are valid worries. But at this point in the game, I think any further delays and negotiation on new top level domain names will only hurt domainers.
The GNSO proposed new gTLD plan is so inherently flawed it’s difficult to see how ICANN can realistically proceed without significant revision.
domo sapiens says
In the short term of course it will hurt the existing TLD market, yes even .com (and Country Codes ) however already ailing alternative extensions (.info .mobi .us .tel etc etc ) will suffer greatly, every dollar that goes to these new GTLDs won’t go to the already established ones, the Pie will split even more.
In the long run…
In a state of confusion and uncertantity people run to what they know eg: the greenback/gold , I forsee the same happening people eventually going back to the establishment .com and selected Country Codes.
Aside for a few selected niches * I don’t see the New TLDs working out for the same exact reasons that : .info .mobi .tel .us .travel etc etc didn’t. (even that some have very intuitive meanings), same goes for the largest ever snake oil domain venture of all : .co
Promotores laughing their behinds all the way to the bank,
*niches that will have a hard time becoming “cost effective” .
WebhostUK says
Hello,
Just .co domain now seems to slow down there effect in the market.. hardly find anyone ordering them lately.
Servers Hosting says
Hello,
Is interesting to know now what the new TLD will be ..but the market for .com and .net domain still seems to be larger.