In my opinion, this is what it will ultimately all boil down to when it comes to new gTLDs: making informed decisions after analyzing the pros as well as the cons.
Today, I want to put the “upside potential vs. liquidity” argument under the microscope.
Compared to investment grade dot coms (please remember that not all dot coms are investment grade), the upside potential will be higher but at the same time, the reseller market liquidity will be considerably lower or even non-existent in some cases.
I’m sure that for the right terms in the right extension, the end user demand will be there.
When it comes to the reseller market demand though, things will unfortunately be different, especially at the beginning. Will there be exceptions? I don’t know, time will tell. The only thing that’s certain is that not even the best new gTLDs will come close to the dot com extension in terms of reseller market liquidity.
In my opinion, there will definitely be opportunities if you have the right attitude but you have to understand exactly what the particularities of each extension will be.
In some cases, only a handful of terms will make sense from a domaining perspective.
In other cases, there will be more investment grade domains.
There will most likely be success stories, just like there will be less than optimistic stories.
The bottom line is that you as a domainer have to understand how things will work in the industry once the new gTLDs go live. The more upside you want, the higher the risk factor will be and when it comes to reseller market liquidity indicator, dot com has an advantage.
On the other hand, let’s assume you purchase a LLL dot com.
It’s a great investment grade domain but realistically speaking, the chances of making 50-100x your investment are very low. When it comes to new gTLDs though, given the lower acquisition cost, I’m convinced we’ll even see returns such as 1,000x. In other words, I’m convinced we’ll see people buy certain domains at let’s say 2 figures from the registry and sell them for let’s say 5 figs.
If you want to take advantage of the higher upside potential however, you also have to accept the fact that while selling a LLL dot com on the reseller market whenever you need liquidity is a piece of cake, the same thing won’t be valid for new gTLDs.
As long as you know the rules, you’ll be in a good position to do well.
But the burden will be on you.
If you want great results, you and you alone are responsible for figuring out how to do it. Not me as a blogger or anyone else for that matter. I’ll do my best to share tips (pun intended) and opinions but 100% of the responsibility lies on your shoulders.