New TLD proprietors should not rely on domainers for much revenue
Friday, March 16th, 2012
Sorry new TLD operators, but domainers don’t have much money to give you.
Launching a new TLD? I hope you don’t have a big line item for revenue you’ll make from domainers registering your domains.
I’ve written about this before, but want to stress it again: there’s not enough money to go around.
Yes, domainers have been there to prop up launches such as .eu and .mobi in the past.
But a couple things are different this time around:
1. Domainers don’t have as much cash to plow in to registrations as they did pre-2008 (when the PPC market burst)
2. You’ll have a whole lot of competition
For illustrative purposes only, let’s say domainers tend to invest $10 million in registrations during landrush and initial general availability for a “new” TLD. A new TLD typically comes around once a year or so historically.
Now let’s say we’re looking at 100 non .brand TLDs coming out in a span of a few months.
For domainers to have the same impact across this many TLDs, they’d need to invest $1 billion. That money doesn’t exist. (Even if you assume domainers only invest $5 million, the same ridiculous math holds true).
Sure, they’ll spend more than the $10 million in aggregate, but there’s a limit to their collective pocket book.
The net result is you should expect a depressed number of registrations from domainers and lower prices for “premium” sales.