News flash, .COM is king!! The new GTLD market appears to be losing its luster. Yep, that’s right the craze seems to be fading as investors start to realize that it’s going to take many years to reap the longer-term investment.
According to the Domains, 9 out of 10 registrants of the new GTLDS are Chinese investors. There are also more than three million domains listed as upcoming delete. Could we say that the novelty has worn off?
There are many speculators in the domain business with many investors targeting low-cost alternative investments such as the GTLD. Here’s the problem…
ICANN has authorized more than 1500 GTLD strings and the release has dumped so much new inventory into the current market. Basic supply and demand. This drives down the long-term value of the new strings and thus-creates limited opportunity to increase in value.
Couple that with the fact that 90 percent or more of all GTLD strings are not marketed effectively and are primarily unknown to most investors.
This is a recipe for disaster as we are starting to see now.
As we have previously reported the demise of the GTLD is beginning. We will start to see a steady increase in the value of the .com again. Brands understand the value of long-term equity and credibility. They also understand that their domain name is the foundation for growth and success.
We have always been bullish on the .com and have gone on record as saying that the GTLDS would have limited success. Look at the underwhelming performance of the legacy tld’s that entered the market after .com/.net/,.org.
.Pro, .mobi, .us, .info are all underperforming. It certainly made a ton of sense to add more inventory to the marketplace.
These strings should have been reviewed by ICANN before releasing more strings in an effort to add money to their coffers.
Write it down-The demise of the GTLD has begun, and will continue for the foreseeable future. The only value in GTLD is for the smaller, regional businesses that need a low-cost alternative for their digital real estate.
.COM is KING and will remain the premier beach-front real estate…