New TLD registries will need to count on domainers and defensive registrations if they hope to amass a large registration base.
Every new top level domain name applicant I’ve spoken with will swear they aren’t counting on defensive registrations to build their domain base. Even those whose business model depends on companies wanting to make sure people don’t think they .suck.
Many of them also say they don’t want or care about the domain investor’s business.
They’re after end users, they say.
If I were running a new TLD registry I’d say the exact same thing.
But let’s be honest here: if a new TLD operator wants to come anywhere close to the number of registrations that .mobi, .me, .xxx, and any other recently “launched” TLD have, they’re going to need to count on both domainers and defensive registrations.
How many of the 700,000 existing .me domain names resolve to an actual website? How about the other TLDs?
It’s minimal, and the bulk that don’t resolve are reserved by someone for either defensive purposes or for potential future use/resale.
Now, registries want end users to register their domains. They need them to for the long run health of TLD.
But if you hope to have 50,000 or 100,000 domain registrations after one year, you’re going to need to count on speculators and defensive registrations. For some niche domains, you’re going to need this to top even 5,000 or 10,000 registrations.
Unfortunately for registries, domainers won’t chip in as much this time. But if a registry’s business plan has a high number of registrations involved, they better start courting domain investors and promote their sunrise.
Rubens Kuhl says
Registries that are under pressure from investors/VCs regarding ROI or short on cash might want to consider domainers for filling this cash flow need, but most registries will focus on end users to foster long term acceptance of the TLD.
On the other hand, defensive registrations present a more challenging decision, both on a business perspective and on burden on trademark owners that many times ask registries for defensive registration offerings. They hurt the TLD long term, and although not as much as domainers, they do it for more time.
We will likely see the same approach from most registries regarding domainers, making them not very fond of new gTLDs, but defensive registrations will likely be more divided among registries of whether they are encouraged or not, allowed or not.
Twice done bad says
Sorry, but the reason this particular domainer will be sitting out the gtld’s is cuz they are dumb, subject to financial failure, waaaay too long, fail the radio test, hemmohrage traffic to the .com counterpart, will cause extreme consumer confusion, will have no resale value and will most likely SEO like an iron anchor. They are .mobi and .coop all over again.
Rubens Kuhl says
This can also be true, but my point is that whatever value there is to get from new gTLD domains, it will be mostly go the registry, not to domainers, no matter it’s low or high. But although registries will probably prevent arbitrage, they won’t prevent brokerage; a secondary market of new gTLDs will arise, with pricing points that are difficult to guess.
Henry says
Like they say, a high tide lifts all boat but in this case, their focus on end users, and perhaps higher pricing, based on what I have read so far, will also help justify a higher price for the “.com” names. If that’s the case, “.com” will always remain the premium tld in my opinion and that spells trouble for a lot of the new tlds.
Joseph Peterson says
Many of the new registries — whether disingenuously or through confusion — have painted themselves into something of a corner.
On the one hand, they must disparage domainers because the new GTLD sales pitch (usually) is based on contrasting the bad old days of good domains being all “taken” (implicitly by domain investors) with the shining tomorrow of infinite possibility.
And, on the other hand, these same registries depend — as this article points out — on domainer speculation to pay a large chunk of their bills. Ditto defensive registration, which is the unmentionable backbone of every registry’s projected revenue.
Trouble is … The same sales pitch that might sway end users will alienate one large part of their consumer base — domainers.
Each GTLD or registry sits on a tripod — the 3 legs of which are (1) defensive registrations, (2) domainer speculation, and (3) those elusive but venturesome end users who’ll presumably base their business and livelihood on the .UNKNOWN.
So we all watch these registries dance the most peculiar of dances: (1) Pretending one leg of the tripod doesn’t exist; (2) Snubbing domainers and kicking out the second leg of the tripod; and (3) competing aggressively with each other to balance on the single remaining leg, while kicking each other over.