Some of you probably know this but cognitive dissonance is basically the feeling of discomfort that occurs when you’re dealing with an inner conflict between contradictory beliefs.
What does this have to do with domaining?
Simple, here are two statements:
“Dot coms will continue to be #1″
“New gTLDs can be profitable for domainers”
Should these two statements bring us in cognitive dissonance territory?
Most domainers would probably say that yes, they should.
I don’t agree because in my opinion, these two statements are *not* contradictory.
First of all, there is no doubt in my mind that dot coms will continue to be #1. I said this on DomainingTips in the past as well: I’m convinced that even the people behind the new gTLD registries feel the same way.
So yes, dot coms will most likely continue to be #1 for as long as the Internet will exist in its current form.
But the thing is, I’m just as convinced that new gTLDs can be profitable for domainers.
Yes, for domainers.
Let me explain why and let me explain why the two statements are anything but contradictory.
Dot coms are basically the “safe haven” domain investments.
In other words, they are the least risky domain investments by far and deserve their safe haven status.
New gTLDs are considerably more risky but if you know what you’re doing, the rewards might just make everything worth it.
As an analogy, let me refer to the stock market.
Are you familiar with blue chip companies?
Basically, blue chip companies are considered the safest and most solid companies listed on the stock market. Realistically speaking, you can be reasonably confident that these companies aren’t going anywhere. Investment grade dot coms are the blue chip investments of the domain world.
Investing in new gTLDs, on the other hand, is kind of like investing in a new company. If you get it right, your returns can be huge but on the other hand, the risks are higher than with blue chip companies.
Therefore, I’d say it safe to conclude that the two statements I referred to at the beginning of this post (”Dot coms will continue to be #1″ and “New gTLDs can be profitable for domainers”) are anything but contradictory.
In fact, dot coms and new gTLDs complement each other in my opinion.
Based on your risk tolerance and goals, you can only you are responsible for calibrating your strategy.
That’s what it ultimately all boils down to.