New TLDs are here to stay. That doesn’t mean they’ll make money the way they’re being operated right now.
“New top level domain names are dead! New top level domain names are dead!”
That’s been the common chorus from commenters on domain name blogs over the past couple weeks since news broke that Frank Schilling was jacking up the prices on many of his top level domains.
At the time, I asked if it was a death spiral. Upon further reflection, I think Frank’s move was a capitulation. I think he miscalculated the effects of this change, but he also faced the facts about many new top level domain name business models.
The reality is that most strings will be niche players happy to have 5,000 strings for many years.
I think this has been evident for the last year (or even two?). This is why I was so surprised at the money some new TLD operators were throwing at domain names in new TLD auctions. Click here to continue reading…