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Will New gTLDs Have Reseller Market Potential?

Posted on 18 February 2014 by Andrei

Well, it depends.

You see, there will be lots of extensions and since there’s only so much reseller market liquidity, figuring out which domains have reseller market potential won’t be easy.

Through this post, I’ll try to offer some general guidelines.

In my opinion, we will be able to group new gTLDs in tiers based on their reseller market potential.

So Tier1 new gTLDs will have the most potential, followed by Tier2 new gTLDS and so on. At this point, I can’t tell you which extensions belong where because to be honest, I don’t know and neither does anyone else. The market will ultimately decide.

Again, this post simply contains a few general guidelines.

What’s the point of having those tiers, you might ask?

Well, depending on which tier we’re talking about, the number of let’s call them investment grade domains will vary. The more popular an extension is, the wider the pool of investment grade domain will be.

So for a tier 1 new gTLD, there may very well be quite a few investment grade domains: one letter domains, two letter domains, huge industry keywords, medium industry keywords etc.

For tier 2 new gTLDs, there will be less investment grade domains. Maybe there will only be reseller market demand for one letter domains in those extension and not for two letter ones, you get the point.

For tier x new gTLDs, maybe there will be no reseller market demand for one letter domains whatsoever and only a handful of domains can be considered investment grade.

Even right now, we a similar situation with the existing TLDs.

Like for example, a LOT of dot com domains can be considered investment grade. For example, all quad premium LLLL dot coms are investment grade.

If we move to the next tier, let’s say dot net + dot org, LLLL domains are for the most part not investment grade.

If we move lower to let’s say dot info, not even LLL domains are investment grade and so on.

For the existing gTLDs, we know how things stand.

For the new ones, we will find out and at this point, your guess is as good as mine :)

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1 Comments For This Post

  1. Leonard Britt Says:

    SEDO published their 2013 domain market study showing that about half of all sales were .COM and that the median sales price was $577. They also reported about 37k sales out of the 18 million on their platform (not even one fourth of 1% of listings) So what does that say about the likelihood of making money spending hundreds of dollars upfront plus paying elevated renewals compared to .COM on a TLD which has no track record…. I’m sure there will be profitable flips but those will not be the norm. Ten years out perhaps things change but I don’t foresee the new TLDs becoming established from the vantage point of mass end user adoption and paying premium prices to acquire aftermarket new TLD domains for quite a few years.

 
 
         
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