A lot of niche license plates, just like niche domain names, might not make sense in the long run.
The Dallas Morning News published a story this past weekend about specialized licensed plates and a lack of sales for niche plates.
Like many states, Texas offers specialized plates for supporters of certain causes, alumni of various colleges, etc.
Texas is planning to cancel certain plates that have fewer than 200 users. Police are complaining about confusion from the multiple plate designs. They also don’t make much money.
There are more than a hundred options in Texas, ranging from a small Dallas area school district to Dr. Pepper to the The State of Texas Alliance for Recycling’s recycling plate. The latter has just 84 users.
The Alliance for Recycling doesn’t plan to do anything more to push the plate. It says the plates simply don’t generate enough affiliate revenue for the group.
As you read the article, you might find it a bit similar to the new top level domain names. There’s no arbitrary minimum that registries have to sell, but there is a floor at which it doesn’t work for the registry. Ignoring sunk costs, they pay at least $25,000 to ICANN each year, plus money for necessary services, lawyers, and some number of employees (or outsourced providers).
Some of these domains appeal to very small niches. Will they sell enough domains to cover the costs?
Duke says
Year #2 when renewals come around if there is a big dip and no substantial buyers to pick up the pieces or very few new buyers it will be a tell for future of this market.
I like your license plate analogy. Although it’s not domains it still has some good relevance to this new market.
Joseph Peterson says
I’d be surprised if — years from now — we haven’t seen at least one vanity TLD officially retracted.
Before that, its registration numbers will be low, then decline. The original registry will probably hand over responsibility to a larger company to see if scaled efficiency and a reworked marketing plan can save its baby .LILLIPUTIAN.
But at some point, even the second registry will realize that the TLD is bound to continue far below profitability. So the handful of remaining websites will be paid off to relocate, or else see their rent go up and up and up until they voluntarily rebrand. Then their former domains bulldozed.
This scenario won’t apply to the majority of TLDs, but my hunch is that it will transpire.