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5 more experts weigh in: what do new TLDs mean for domainers?

June 8, 2012domain investors, domainers, Domaining, Domainnamewire, new tlds, UncategorizedComments Off on 5 more experts weigh in: what do new TLDs mean for domainers?

What domainers should think about as the new TLD launch approaches.

Yesterday I published the comments of seven domain experts on what they think new TLDs will mean for domainers. Today I’ve rounded up five more experts from various parts of the industry.

Bob Mountain
Senior Vice President, Business Development at NameMedia

The introduction of new TLDs is probably the biggest change to the domain name space since the browser. Over the next 2-3 years users will be presented with thousands of new domain extensions. Near term we believe this will cause a lot of confusion and there will be a retreat to the safety of exiting TLDs, mainly dot com. Long term this has the potential to dramatically expand the size of the market, and to a certain extent reset the market by providing attractive generic and geo alternatives to the existingname space. Afternic is launching an innovative new program to help registries manage their Premium New TLDs and we’re excited about the potential for both domain investors and end users. This is going to make our industry a very interesting place as the new TLDs play out.

Debra Domeyer
Chief Executive Officer,

The success of any given new TLD will depend on how aggressively the registry promotes it and how readily businesses and consumers adopt it. There is already a lot of new TLD competition, excitement, noise, and even confusion in the marketplace. My prediction is that a handful of new TLDs will emerge as winners. For domain investors, the challenge is predicting or tracking and quickly identifying new TLDs with strong promotion and adoption trends. For the new TLDs that do emerge as winners, our industry will certainly benefit from increased registration, parking and aftermarket revenues.

However, regardless of what happens with new TLDs, domain investors with premium domains in the top TLDs should not worry about declining value. Businesses will continue to look at these top TLDs as prime, coveted real estate. And direct navigation users will continue to use familiar, existing TLDs.

Tobias Flaitz
Chief Executive Officer, Sedo

Sedo is excited to see which gTLDs have been applied for, and how these will impact the domain market. Generally speaking, the success of any new gTLD will rely on its commercial relevance based on the marketing strategy and business model behind it. With a good foundation on this front, a new gTLD can capture public interest, become a go-to location for consumers, and result in an innovative opportunity. On the secondary market as a function of the primary market, only those gTLDs that have a highly visible presence during their primary registration period will have the potential to be successful. We’ve seen a great example of this with CO Internet, who have partnered closely with Sedo.

Juan Diego Calle
Founder and CEO, .CO Internet

I think domain investors will have to think about TLDs in a similar way to traditional domain investing. Will this name (TLD) appreciate in value? Does the industry/segment have strong/growing fundamentals? All that plus one additional (if not critical element): who’s running the TLD? Is the company behind it credible?

Michael Berkens
Domain investor, Right of the Dot, and

People certainly can’t point to a single launch of one TLD in the past and say well .museum and .aero didn’t work so these new gTLD’s are doomed.

With the brands and the media companies coming into the right of the dot space nothing that has come before can be compared to what is to come.

I also think the Domainer community is downplaying the people that are coming into the space with tens of millions of dollars.

You’re talking about people like Bhavin and Div Turakhia who are unquestionably brilliant and successful, the Donuts guys, Minds + Machines, Demand Media.

The list goes on and on. Of course we can only talk about those who have come out in public, but they are exceptionally smart, highly successful people that are coming with huge checkbooks in hand and the volume of those types coming into the space should not be downplayed.

The effect on current domain holders in terms of current value is just a guess. A case could be made how current values will decrease in light of a huge new supply and choice while one can argue that all of the new choices will lead to consumers to default to what they know which is .com

© 2011.

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Related posts:

  1. Experts weigh in: what do new TLDs mean for domainers?
  2. Experts Predict 100-1500 New TLDs by 2011-2012
  3. Microsoft, Time Warner, Others Weigh In On New TLDs

Experts weigh in: what do new TLDs mean for domainers?

June 7, 2012domain investors, domainer, Domaining, Domainnamewire, new tlds, UncategorizedComments Off on Experts weigh in: what do new TLDs mean for domainers?

What should domain investors think about as new TLDs come to market?

Companies have submitted close to 2,000 applications to ICANN to run new top level domains covering everything from .app to .zippo. What will this mean for domainers as we watch a flood of top level domains hit the market in the coming years?

I reached out to close to 20 industry experts with diverse backgrounds to get their opinion on this question:

“New top level domains are on the horizon. What impact will this have on domainers?”

I asked them to limit their response to 100 words, which is easier said than done. Below is the first set of responses. Tomorrow I will publish the responses from more industry experts.

Bill Sweetman
Vice President, Domain Portfolio, Tucows

The launch of new TLDs will mean that hundreds of millions of dollars are going to be spent on consumer marketing and advertising of these new domain extensions. In the next 24 months, the general public is going to see an unprecedented wave of messaging about these new TLDs, and that means people around the world are going to end up paying more attention to domain names *in general* and what’s to the right of the dot. The upcoming increased awareness of domain names is good for the industry as a whole and spells opportunity for anyone with an open and entrepreneurial mind, and
that includes domainers who are willing to think outside the .com box.

Alexa Raad
CEO, Architelos

Domainers, like the rest of us, will have to wait and see. The opportunities will no longer be restricted to their portfolios of predominantly dot-com names. The focus will be on the open generic keyword TLDs, but it is too soon to tell which ones will be awarded and of those which will have a strong value proposition, and a killer marketing and PR machine to drum up awareness and demand. I would also not be surprised to see some domainers investing in gTLDs as applicants. No one knows for sure the possibilities of new gTLDs, but I am already hearing of some very innovative ones and some .lol ones!

David Castello
Founder, Castello Cities Internet Network, Inc

It will take a long time for any of these new generic TLDs to gain traction. Conversely, in-house TLDs like dotNIKE etc will do fine because their usage is limited and protected. However, the generic TLDs hoping for public acceptance and wealth will discover the reality of being a needle in a haystack that can no longer depend on the traditional initial cash flow from speculators simply for being the new kid on the TLD block. The phenomenon of a TLD going belly-up will cease to be a rarity and, after the dust settles, the legacy and country code TLDs will become the gold standard as the safest places to build your brands. Look for ICANN, registrars and attorneys to do well. For the rest, it will be an expensive lesson in marketing.

Monte Cahn
Right of the Dot and founder of Moniker

The impact to domainers will be overall very positive for the following reasons.

There is almost $400mm being invested just in application fees alone for some 1900+ new extensions. Imagine how much additional dollars will be invested into our industry for marketing, sales, awareness, PR, products, services, etc. All for the domain industry.

This is a huge expansion of our current industry – it’s going to more than double with the addition of new extensions. New markets, new companies, new ideas, new technology, are all being created from this new expansion.

It’s providing worldwide coverage of our industry as well, something that has been relatively silent until the announcement of TLDs in IDNs, regions such as .Africa, cities such as .Miami, .Berlin, .NYC, . Amsterdam, .Tokyo, etc.

More awareness, more publicity, more users, create more demand for new and existing domains. It also opens the door for investment for domainers who feel they missed the gold rush of the early .com years. There are now several new domain extensions that have great potential in Geo names, generic top levels as well as application type names. Extensions such as .Law, .Health, .Green, .Music, etc. provide great new virtual real-estate opportunities for all.

This is comparable to what Web 2.0 was with the expansion of the internet, except we are probably talking Web 3.0 +

There will be more names to sell, buy, monetize, develop, build, and redefine!

Bhavin Turakhia
Founder, Directi and Radix

I believe new TLDs will not change much in terms of business for domainers. I believe there will be a lot of opportunity in making legit investments in domain names in new TLDs which will pay dividends. For the first time now there are several interesting creative options available on the right side of the dot which genuine investors can leverage.

Rich Merdinger
Vice President of Product Development – Domains at

In a word, ‘opportunity.’ At Go Daddy, we consider domain names to be like 21st century real estate and the new alternatives certainly present significant potential in the years ahead. In the short term, domainers can look to maximize the potential of the current portfolios and position themselves to take advantage of new options that come with the emergence of newly introduced gTLDs. We expect many open-minded investors will find innovative ways to leverage new prospects. With the number of new domain name extensions being released, there is also potential for saturation, so careful planning will be essential when it comes to decisions on where to invest.

Elliot Silver
Domain investor,

That’s the million dollar question. No doubt there will be an impact, and as domain investors, we will need to adapt to market changes. If brands utilize their gTLDs and they are advertising .brand websites, consumers may begin to look to the right of the dot more quickly, and that could increase the demand and value. Ultimately, we need to realize that this is new territory and changes in the market are likely.

[See responses from Mike Berkens, Bob Mountain, Juan Diego Calle, and others tomorrow.]

© 2011.

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Related posts:

  1. Experts Predict 100-1500 New TLDs by 2011-2012
  2. Microsoft, Time Warner, Others Weigh In On New TLDs
  3. Domainers: Here’s What You Need to Do Now That New TLDs are Approved