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Where Are the End Users?

Posted on 18 August 2014 by Andrei

To be fair, now is *not* the time to start asking that question. This post’s objective is simply pointing out that the “it’s too early to ask that” argument can only work for so long. At this point yes, it works because it actually is quite early in the game but we will eventually have to start addressing this question because absolutely everything depends on it.

Thus far, I can’t say I’ve seen any examples of new gTLD development success stories.

And by success stories, I mean sites that at the very least went viral. Even that would normally not be enough (it would however at least be something) because to gain traction, new gTLDs would need huge websites as let’s call them ambassadors. For example, something like what Wikipedia is for Dot Org or what Internet Service Providers are for Dot Net.

As domainers, we might think that everyone is talking about new gTLDs but let’s face it, at this point only we are :)

That has to eventually change.

Otherwise, all new gTLD business models would crumble.

Sure, new gTLD registries could technically even be profitable with the current quasi domainer-only numbers but in the absence of adoption and end user sales, how many domainers do you think will keep renewing inventory?

I’ve mentioned time and time again that at the beginning, domainers are an essential part (the most important one, by far) of a new gTLD registry’s business model. However, this situation can and should only be temporary. As of a certain point, end users have to start taking over because a domainer-only infinite revenue loop is out of the question.

I don’t know when the time to start asking this question will be but eventually, it has to and will be in the spotlight.

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4 Comments For This Post

  1. JamesT Says:

    Domainers are suckers paying the way for these execs to keep buying more for 185K, and selling them back with $1000 renewals every year, when will these suckers learn. End users are not stupid, some domainers are like lemmings for the most part.

  2. Leonard Britt Says:

    It would not surprise me to see limited adoption of perhaps up to a few dozen new TLDs over the next ten to fifteen years. But as I have pointed out before, .Net has existed since 1985 and .TV since 2000 and while one does see limisted end user adoption of those extensions, the weekly DNJ sales reports don’t show massive numbers of five-figure sales in these TLDs on a regular basis. IMO domain investors paying extra before general availability and paying premium renewals for new TLDs in most cases will not see impressive returns at a portfolio level.

    We also cannot forget that many small businesses are using Facebook, Youtube and other free platforms (wix, blogger, tumbler) as their internet presence – no need for any domain whatsoever.

  3. Snoopy Says:

    “Sure, new gTLD registries could technically even be profitable with the current quasi domainer-only numbers but in the absence of adoption and end user sales, how many domainers do you think will keep renewing inventory?”

    //////////////////////

    I think domainers tend to renew for several years before dropping. It is emotionally easier to pay a renewal than let a domain drop. Could be quite a few years before new tlds see a big domainer tail off in renewals.

  4. Lennard Says:

    There are some that are adopting these new TLD´s
    I sold one to an enduser crowd.trade and I lost an auction to another one with cfd.trade

    Funnily both .trade domains
    No bids on any of my other gTLD´s
    I will not be renewing any .xyz that is for sure. I will be renewing some others though, although i have steered clear of any premium renewal domains. Just doesnt make sense with my Wallet size :)

 
 
         
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