Categorized | Domaining Tips

Will New gTLDs Have an Effect on Dot Com Values?

Posted on 20 January 2014 by Andrei

Yes… and no πŸ™‚

To clarify my seemingly contradictory statement, I’d just like to add that another question is (in my opinion) necessary in order to answer the one in the title:

Which dot coms?

You see, there’s no way to just say “dot coms” in a manner that encompasses absolutely everything in terms of inventory.

For example, and… do they both fall into the “dot coms” category?

I’m sure you get the point.

Let’s not generalize.

The answer to a simple question is unfortunately often complex and our situation doesn’t represent an exception.

For example, I’m reasonably confident that will always (unless something dramatic happens) be the category killer domain.

Its value will most likely not be affected by new gTLDs in a negative manner and in fact, the exact opposite is more likely: the effect of new gTLDs on the very best dot coms such as will most likely be positive.

But what about let’s say

It’s a great domain, no doubt, but what if you were to choose between it and Insurance.web for example?

Some people would probably choose, some people would probably choose Insurance.web.

Therefore, it’s relatively safe to say that under such circumstances, the value of domains such as might be affected in a negative manner to a certain degree by new gTLDs.

What about let’s say vs. Insurance.web? In my opinion, most people (the overwhelming majority) would choose the dot web.

Therefore, it’s relatively safe to say that under such circumstances, the value of domains such as most likely will be affected by new gTLDs in a negative manner.

In my opinion, a lot of dot coms will be affected by new gTLDs in a negative manner, as explained through this post.

I’d recommend taking a close look at your portfolio, being honest with yourself and trying to divide your portfolio into 3 groups:

1) gems about which you don’t have to worry

2) good domains which might be affected in a negative manner

3) medium (or worse) domains which most likely will be affected in a negative manner

It probably won’t be all that much fun, being realistic rarely is unfortunately πŸ™‚

4 Comments For This Post

  1. HowieCrosby Says:

    With insurance.web being just one option, .deal + plenty more… this is almost a guarantee that it will drop the price of the said (website)
    Good post.

    That being said, many domainers need to reappraise their domains anyway, as the reason why they never sell, is they are priced too high!

  2. Loan Arranger Says:

    or,,, how about the most realist fourth option in which the gtld’s all immediately fail on their stupid, long-assed faces and all of the .com’s continue to climb in value.

  3. Leonard Britt Says:

    Don’t forget that even before the launch of all these new TLDs that end users still have a number of alternatives – .Net, .Org, .Info, .CO, .TV, .Me, etc. And yet there are 112 million .COM domains. Why do they almost always go for the .COM despite the fact there are other less expensive alternatives? Will that change because there are more alternatives most of which don’t even make sense with their desired keyword/s?

  4. developer Says:

    Does the existence of mud in the everglades adversely affect oceanfront property prices? No. Good analogy too.