Categorized | Domaining Tips

Most New gTLDs Will Have a Serious LIQUIDITY Problem

Posted on 24 October 2012 by Andrei

As most of you know, I specialize in the reseller market and keep in touch with a lot of active resellers. Most of them made money with dot com alternatives but all of their stories (and my personal experience confirms them) have something in common: selling domains in other gTLDs on the reseller market is exponentially harder than selling dot coms!

In other words, there’s considerably less reseller market liquidity than with dot coms and as a result, the PITA (Pain In The Ass) factor associated with liquidating such domains should make you think twice before allocating a lot of capital to such endeavors.

As always, the sky is the limit when it comes to end user sales, this post is strictly about reseller market liquidity issues.

Ask yourself: how many gTLDs are there at the moment of writing?

Not that many.

Now use your imagination and ask yourself another question: if there’s considerably less reseller market liquidity than with dot coms now, how will things stand after 10x – 100x more gTLDs flood the market?

I’m not saying there won’t be opportunities, I’m just saying that in my opinion, most domain investors will lose money with new gTLDs.

You might be one of the ones who won’t and don’t get me wrong, I won’t say no to an acquisition if the risk vs. reward factor will make sense but again: if you think that liquidating gTLD domains will be easy, you’re in for a very unpleasant surprise.

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