Ok, you probably think I’m crazy after reading the title.
Well, you’re right but leaving that aside, my statement makes perfect sense once you understand that it all depends on how you define “successful” and ultimately on the perspective you’re seeing things from.
If you define successful from the perspective of how close the extension in question comes to beating dot com, all of them will fail. All of them, no exceptions. Not even the most enthusiastic new gTLD supporters think that one of the new extensions can surpass dot com in terms of registrations.
But if you define successful from the perspective of profitability, a lot of them will do very well.
You don’t have to be the next dot com to make money.
Not even the next dot net or dot org.
Not even the next dot biz or dot info.
In fact, depending on the pricing structure that has been chosen, a lot of new gTLDs could end up being very profitable with less than 10,000 registrations.
For example, a dot luxury domain will cost about $1,000 if I’m not mistaken.
Therefore, this specific gTLD will be very profitable even if there will only be let’s say 4,000 – 5,000 registrations.
Time will tell whether or not this specific business model will work out, what I’m trying to explain is that it all depends on the perspective you’re seeing things from.
As strange as it may sound, even gTLDs with less than 10,000 registrations could end up being very profitable.
Most domainers will laugh and make fun of such a registry when analyzing the total number of registrations and the registry operators will also laugh… all the way to the bank š
In other words yes, new gTLDs can indeed be successful without being successful. It’s all a matter of seeing beneath the surface and understanding the business model of each company.
November 12th, 2013 at 5:14 pm
Successful then? How about already š I read again today where one applicant got 1.3 mil for backing away from auctions.
Yup, as all domain investors are finding out and that you astutely pointed out. There are many ways to measure and be successful in domain investing and the GTLD program is bringing new money making methods to the fore front.
Good article and observation BTW
SA
November 12th, 2013 at 7:30 pm
A new gTLD can’t be profitable with 10,000 registrations at $10.
100k per year will not cover any of the huge expenses.
Maybe you can manage it if you have 100 new gTLDs at 10,000 registrations each. But even then it would be tough.
November 13th, 2013 at 12:13 am
@Konstantinos: I agree, it can’t be profitable with 10,000 registrations at the $10 price level but we have the dot luxury example where a domain will cost $1,000 and in that case, the registry would be very profitable even at only 1,000 registrations.
The dot luxury scenario is just an example (maybe it will work in their case, maybe not) but I’m sure there will be lots of registries which will charge maybe not $1,000 but perhaps let’s say $50 – $100+.
November 13th, 2013 at 4:55 am
I am pretty sure that .luxury will be charging less than $100 in renewals in 5 years from now. The first 1000 suckers will pay for $1000.
Maybe the trademark holders will “support” all new gTLDs until they realize that they are the suckers.