Earlier today, Mike Berkens wrote a post about the fact that Rick Schwartz registered 500+ new gTLD domains and a lot of people were surprised. In my opinion, there’s absolutely nothing to be surprised about and I’ll try to explain why.
First and foremost, it’s important to view the situation from Rick’s perspective. At the moment of writing, he owns almost 6,000 domains if I’m not mistaken, most of them dot coms. Some were hand registered (he’s been doing this for a very long time, so it’s reasonably safe to assume that quite a few were registered back in the Network Solution days and renewed up until this point) and owned for a lot of time, some were bought on the aftermarket.
All in all, his investment in his mostly-dot-com portfolio is quite high if you factor in the amount it took to keep his inventory renewed and to acquire domains on the aftermarket. In comparison, the amount he is experimenting with now in the new gTLD space isn’t very high.
The amount it takes to register 500+ new gTLDs may seem high for most people but as far as Rick is concerned, it’s not *that* much of a risk in his case but rather an interesting experiment. He earns a living in the domain space and has been doing that for a very long time, so experimenting makes perfect sense.
If his experience will prove to be a success, he will make money.
If not, he will have some very important answers that will ultimately help him put together a strategy for the future.
At this point, he’s basically gathering data and based on the results he and others will observe, decisions will ultimately be made. The same principle is valid when it comes to pretty much any other industry, ours is by no means an exception.