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Viability And Value Of New Generic Domains Questioned

November 17, 2011

Domain name marketplace Sedo has released an updated version of its price index for domain name sales, and with it expressed concerns about the popularity of upcoming new generic Top Level Domains (gTLDs).

Developed by economist and internet entrepreneur Thies Lindenthal, the IDNX options now include now include .com, .net, .org, .biz., .mobi, .info, .de,, .eu, and .es.

The IDNX calculates the latest trends in domain prices every month and is based on data from more than 200,000 domain sales over 6 years.

Aside from showing domain name sale prices seeming to run line with stock market performance, one of the graphs shows the historic performance of .net and .org has not closed the gap with market leader .com. 

While acknowledging the success of .info vs. .biz and the other TLDs introduced in 2001 proves a TLD can be successfully introduced to the market, Lindenthal says most new TLDs "will find it difficult to reach the same levels of success as .com."

That being the case and with running a domain name registry being quite a task, Lindenthal advises "People that are interested in applying for a new gTLD should think long and hard about the logistics of launching a new domain extension, and the performance of the current domain market." 

Lindenthal also notes the .com extension, which has a high level of global awareness, has consistently outperformed the most popular country code Top Level Domains (ccTLDs), and so "casts some doubt on the viability of new regional TLDs that have been proposed", such as New York City's interest in .nyc.

ICANN's gTLD program will allow companies to create new domain name extensions; for example, .television and .clothes. ICANN is expected to start reviewing gTLD applications some time during the first quarter in 2012 - in the face of what appears to be growing and powerful opposition to the initiative.


New Generic Top Level Domains - What's It All About?

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