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Dot Coms vs. New gTLDs – The Main Advantage + Disadvantage in Each Case

Posted on 13 February 2014 by Andrei

Today, I’d like to refer to what I consider the main advantage/disadvantage of dot coms as well as to the main advantage/disadvantage of new gTLDs. Again, this is just an opinion, nothing more.

The “dot coms vs new gTLDs” comparison is extremely complex and there are a lot of variables involved, I will try to refer to as many of them as possible in the future but for today, I’ll just focus on what I consider the main advantage + disadvantage in each case.

Nothing more, nothing less.

As far as new gTLDs are concerned, the main disadvantage (in my opinion) is represented by the fact that there’s pretty much no data we can base our analysis on at this point. No past sales information, no end user-oriented case studies, no reseller market case studies. Nothing.

The advantage is that a lot of domains will be available at very low prices, so the upside potential can most likely be quite high if you make the right choices.

As far as dot coms are concerned, things are completely different.

We have reseller market as well as end user information for pretty much all types of investment grade dot coms. Lots of past sales data, lots of case studies, you name it. Therefore, I’d say the biggest advantage when it comes to these domains is that you know for a fact that investment grade dot coms have reseller market as well as end user value.

The main disadvantage is that everyone else knows this too.

In other words, there’s a lot of competition and the result is that especially for certain types of dot coms, the reseller market prices are currently so high that there’s limited (if any) upside potential for you. The domains are indeed great and I’m sure everyone would love to own as many as possible but if you pay too much, you have to ask yourself: did you just purchase a “trophy domain” or was this a good acquisition with enough upside potential to be worth it?

I’d say that for now, this is a reasonable assessment from a “main advantage/main disadvantage perspective”.

On the one hand, you have a high degree of uncertainty but high upside potential if you make the right choices when it comes to new gTLDs and on the other hand, we have the exact opposite as far as investment grade dot coms are concerned: an undeniable track record but less upside potential.

This much is certain: the next couple of years will be anything but boring :)

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3 Comments For This Post

  1. █▌Ran SOLANO (@ran_solano) Says:

    i am selling a great domain Messengers.bike

  2. Domenclature.com Says:

    There’s no comparison, Andrei.

  3. Michael Says:

    The only advantage with dot whatever is I like the fact that if you’d own “usedclothing.com” then used.clothing seems better.

    But I guess thats one of the costly premium domains.

    Dot com all the way :)

 
 
         
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