While there are plenty of old and new registrars to sell you into new TLD’s, Does it make any sense ?
For those of us in the U.S. who already know that folks have a hard time accepting anything outside of .COM , the first reaction should be “what” and “what for” ?
So if you are a end user wanting to buy the domain just.click, you will find yourself at a loss when most will type justclick.com. The cost of overcoming this is probably more that just buying justclick.com. A good domain investor understands this already.
There are 3 groups of folks that may benefit from the new TLD’s
1. The Registrars will gain the most.$$$
2. Some end users that end up with a unique name that is not easily confused as something else.
3. A Small hand full of domain investors that buy those unique names that a end user will actually want. I would not expect the number of those names to be more than 5k domains per TLD at most. Figuring that 5 to 10 domain investors will probably end up with 90% of those great names if the registrar even releases them all at normal pricing at sunrise.
The whole concept of the new TLD’s was to be for someone like IBM to buy their own TLD like .IBM or .APPLE, .GOOGLE etc… This makes sense ! Someone with a established name becoming a TLD with that name.
If you are a domain investor,
I only ask you really consider if these names are going to have a value to a end user. If the answer is yes, and you can say specifically what kind of end user would want this and for what purpose, you “may” have a value if you can show the end user would not have a even better value with some other traditional gTLD.
What ever happened to .biz .mobi .info or .TV, .Me
Look at the valuations there for TLD’s that have been out there for 5 years or more and you will understand you can judge the future from the past. While .mobi will never get used as intended, I can’t understand with the innovation of smartphones and the “APPS” for them, why it has not come to fruit by now.
It is unlikely that you or I can change the set of facts before us. As much as we wish we could and would like to think otherwise, It is what it is.
The large questions I have and that keep me from entering the NEW TLD’s marketplace is…
Since I realize it is going to take 5 to 10 years to realize a decent value and I don’t expect with so many TLD’s on the market and many more yet to come, the registrars will be able to keep themselves afloat for that long when sales taper off and renewals decline in years to come. What happens to all of those domains when many registrars fail and no competing registrar wants to pick up the pieces.?
It is like buying a lottery ticket you don’t scratch off till after it has expired.
From a investment point of view, to much risk for to little gain. And I for one don’t need a new used car salesman trying to convince me otherwise. A opportunity has to be realized before it can be a missed opportunity.
Since I myself invest in future tech, I find it normal waiting 3 to 6 years to yield a great value… But I also yield a pretty good profit for that waiting.
Unless you are one of the 3 above mentioned, I would think a person could put their nickles in .US .BIZ .EU .INFO and do better, and faster that the new TLD’s.
It’s definitely not a newbie sport. But that is where the registrars will be making all their money… newbie investors. If you don’t have 3-5 years experience, stick with the beaten path. There are plenty of folks that have been doing it for more than 5 years and have yet to make any real profit year over year.
You need to break out your crystal ball and figure out what domains you can get cheap today, that will have value to a end user in the near future. That is investing. And it is the value to the potential end user that sets the price (in the case you have never figured that out). If you sell to another investor, he indeed thinks the value to a end user, at some point in the future, is higher than you are selling it for. But he could be left holding the bag if that user never comes to need it or for the price he has in it.
I fear many investors will be holding the bag with 99.99 % of the new TLD domains.
Since the gTLD’s domains have sold more to many a investor, less than 5% of domains that have sold to investors ever turns out to be something of value. Less than 1/2% are ever going to be worth more than $500 with gTDL’s. What makes 100’s of domain investors think they can beet those investment odds with new TLD’s for a profit is beyond me.
Perhaps there is strength in volume ?
I am reminded of a old saying from a new business owner…
“Sure we are loosing money, but we are making up for it in volume”