Morgan wrote a post about a very important topic earlier today and explained that in his opinion, domainers should stay away from new gTLDs. While I understand and respect his arguments, I disagree and through this post, will try to explain why.
First and foremost, I don’t think domainers should embrace or dismiss new gTLDs based on a thought process that revolves around comparing the extension in question to dot com in terms of popularity, sales volume and so on.
I’m sure everyone agrees that none of the new gTLDs can in any way surpass the dot com extension but as domain investors, the only thing you should care about is whether or not on a case by case basis, investing in a new gTLD domain would have a more attractive risk vs. reward ratio than investing in a dot com.
For example, let me ask you a question: would you buy Insurance.web at the registration fee?
I’m sure most people (probably everyone) would.
Ok, so we can conclude that there’s lots of demand for Insurance.web among domainers at the registration fee.
Would you buy it at 100 bucks?
Again, I’m sure everyone or at least almost everyone would.
Therefore, we can conclude that there’s lots of demand for Insurance.web among domainers at $100.
What about $500? What about $5,000?
The list could go on and on. As the price goes up, the demand at that price level goes down but the most important thing is that for great new gTLD domains such as Insurance.web, there’s definitely quite a bit of demand among domainers if the price is right.
In my opinion, the only question you should be asking yourself whenever a new gTLD investment opportunity presents itself is this:
Is this the best I can do with the amount in question or could that amount be used to make better purchases elsewhere?
That brings us right back to the Insurance.web example.
At let’s say 3 figures, I doubt you’d find better investment opportunities than Insurance.web in the dot com extension.
At low 4 figures, it would be hard to find a more attractive dot com alternative at that price.
But at a considerably higher price level of let’s say mid high 5 figures or more, there are probably better opportunities in the dot com space or elsewhere.
The bottom line is this: in my opinion, dismissing new gTLDs altogether isn’t the best strategy. Instead, I’d recommend analyzing each potential acquisition on a case by case basis and going with the option that gives you the best bang for your buck.