… but that in pretty much all cases, “barely profitable” will be the appropriate term and that’s not exactly a good thing given how high the expectations were.
I’m reasonably confident a lot of registry operators were expecting a home run and based on what we’re seeing at this point, that’s not going to happen.
Yes, I expect new gTLDs to be profitable, especially for the large registries because the more strings you have, the lower your initial costs will be on a “per new gTLD” basis. But no, the profits will most likely *not* be worth writing home about because let’s face it, the numbers are for the most part quite weak.
If new gTLD registries made calculations based on let’s say Dot Co and Dot Mobi numbers then, needless to say, they’re probably not celebrating at this point. And even if their estimates were less optimistic than that, I’m pretty sure they weren’t expecting situations when certain strings got less than 1,000 registrations (in some cases even low 3 figures) after the start of the General Availability phase.
All in all, I think that if things continue in this manner, registry operators will be quite disappointed.
On the other hand though, they should have expected this.
First and foremost because there was practically no innovation involved, nothing that sets new gTLDs apart. I mentioned this on more than one occasion, a lot of creative solutions could have been implemented.
For example, offering more than just a domain. In fact, I mentioned an example yesterday: offering an easy way to put together a directory for all Dot Directory domains. Or an easy way to create a forum for all Dot Forum domains (random example, as we don’t have a Dot Forum new gTLD yet), a blog for Dot Blog domains (same situation) and so on.
Perhaps this situation will change in time.
It really should in my opinion because in 2014 and beyond, expecting people to buy your new gTLD “just because” isn’t exactly an amazing business model. At the risk of sounding like a broken record: there’s a word new gTLD operators have to find out about.
What was it again?
Oh, yes: innovation!