Categorized | Domaining Tips, New gTLDs

Way Too Many Domainers Are *Still* Interested in New gTLDs…

Posted on 03 March 2019 by Andrei

… Stockholm syndrome?

As I was browsing around the domaining space this morning, it became clear to me that despite several years of cold showers, waaaay too many domainers are still buying the new gTLD dream.

They’re following landrush/GA phases, building portfolios, paying “premium” registration fees or at the very least higher-than-average renewal fees on completely unproven assets, calling other investors ignorant for not jumping on this once-in-a-lifetime opportunity… I just don’t know what there is to say anymore.

At the end of the day, maybe articulating additional arguments as to why new gTLDs are just not worth it for investors (again, for investors, not developers) is pointless.

Instead, I’ll just go ahead and post a few questions for those who believe new gTLDs represent opportunities worth taking advantage of for domainers.

How much money have you invested in new gTLDs thus far?

How much money have you made thus far?

Has your new gTLD adventure been profitable or not up until this point?

Maybe the answers to these three questions are not exactly impressive. Perhaps you’re losing money now but believe there’s so much opportunity out there that it’s only a matter of time until things will move in your desired direction.

If that is the case, here are a two additional questions:

When browsing through databases of recorded sales, how many dot com sales do you have to go through until you get to a new gTLD sale?

Out of the new gTLD sales you do notice, how many are sales made by registries rather than individual domainers?

Leaving everything else aside, here are some final questions that pertain to your portfolio:

How many new gTLD domains do you own and how much does it cost to renew them each year?

What’s your average sales price for new gTLD domains?

How many sales would you need just to break even on renewals?

How many sales would you need to not just break even on renewals but also recoup your initial acquisition costs?

Which percentage of your portfolio would you need to sell at your average sales price each year just to break even?

Is that percentage higher than let’s say 2-3% per year?

If so, what makes you believe your new gTLD portfolio can beat a decent turnover rate (end user sales, not reseller market sales) for dot com portfolios?

… hopefully, answering these questions will help you draw your own conclusion when it comes to the financial viability of your new gTLD strategy.

I mean hey, maybe you’re making a ton of money via new gTLD sales and are laughing all the way to the bank… if so, good for you!

But I for one have not come across a single meaningful *domainer* success story that pertains to new gTLDs, as in a domainer who makes a decent living by buying/selling new gTLDs. I’ve come across several case studies involving registries who made a bunch of money selling their own premium inventory but domainers… yeah, not really 🙂

Food for thought…

5 Comments For This Post

  1. John Says:

    These are all very good questions that I would bet not many gTLD ‘investors’ would want to answer. Most money is being made by the registries. An investments, worse than unregulated pick sheets.

  2. Joseph Says:

    The G’s all .suck, but don’t feel bad for those who got conned into buying. There were lots of signs and they should have known. In fact, it was always rather obvious that this dodo bird was just never gonna fly.

  3. David Says:

    Certainly I’m not defending the ngTLDs, but if you follow the completed sales thread over at NP, then you can get a little more insight into ngTLD sales. I remember one investor that had a decent volume of sales and prices.

  4. Snoopy Says:

    I remember in 2014 about 1/3 of domainers liked ntlds and were investing whilst 2/3 didn’t like them. Every poll conducted showed around those kind of numbers.

    Fast forward 5 years on and all the polls I have seen it is now about 1/6 who still like them. It is an evolutionary process. The majority have probably dropped out/are dropping out/have stopped buying because of lack of sales, and there would be a smaller number of new people still coming in to replace some of them. Over time the number will continue to sink but it will never get to zero no matter how bad the sales are. Even today there is still some people investing in .biz, .tv, .mobi so expect the same for new tlds.

  5. Mark Thorpe Says:

    .COM sells itself, new gTLD’s do not. You can’t reinvent the .COM wheel. The market has already chose .COM
    If .org or .net can’t beat .COM, no nTLD ever will. Common sense.

 
 
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