5 With... Bhavin Turakhia Discussing His Company's $30 Million gTLD Investment | DomainInvesting.com
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5 With… Bhavin Turakhia Discussing His Company’s $30 Million gTLD Investment

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Bhavin Turakhia is the CEO and Co-Founder of Directi, a technology conglomerate that owns and operates companies like Skenzo, LogicBoxes, ResellerClub, BigRock, and others. Working with his brother Divyank Turakhia, Directi is now reportedly worth “Worth $350 Million or Maybe More,” which is quite a remarkable feat.

Recently, Directi announced the formation of another company, Radix Registry, which has applied for 31 gTLD strings, including .bank, .loans, .insurance, .law, .shop, .music, and many others. It was also announced that “Directi has committed over $30 million” towards these new gTLDs, which is quite a big commitment.

I wanted to ask Bhavin some questions about Radix Registry and about the new gTLDs. I appreciate his willingness to answer. Feel free to ask your own follow up questions if you’d like.

ES: Most of the TLD strings you applied for will be contested. Do you think your company will partner with other companies on some, or would you prefer to spend more on auctions?

BT: At this time we are open to both possibilities. There is no doubt that for some of the hotly contested TLDs it will make more sense to partner, as opposed to running up the Auction value to excessive levels. That amount can be much better utilized if invested in post-delegation marketing. ICANN has said that it will encourage “voluntary agreement” between parties to resolve conflicting applications, and that auctions are only a method of “last resort”. We are also prepared for aggressive competition in cases where the partnership isn’t the best choice for us. The Directi group has more than adequate reserves to compete for all the strings we have applied for. We will evaluate the possibilities on a case by case basis and lean in the direction that makes most strategic sense.

ES: What is your company doing to prepare for the “digital archery” process?

BT: We have devoted some of our best resources to ensure that we are able to achieve the spots we’re looking for. I believe there is too much riding on this process since the third and fourth batch could see a lag-time of 2-4 years. Ideally ICANN should attempt to scale-up its evaluation resources and process all applications at the same time.

ES: How do you think new gTLDs will impact the domain investment space, including the aftermarket and monetization?

BT: Due to the massive increase in the supply of premium real-estate, we may see a short-term decline in domain name valuations. Since customers will have premium name options in a TLD which closely represents them, they will maybe less likely to pay large sums for a short .com name.

In the long-term there will only be a small number of nTLDs that will be interesting from an investment stand-point. We believe that overall the domain investment space will not be significantly impacted in the long term and will actually grow due to the additional options in the namespace.

ES: What are the key factors in getting consumers to adopt the new TLDs?

BT: I believe there are three stages to a successful newTLDs

1) Awareness: Customer should be able to ‘get it’ i.e. see clear value in registering their domain name in nTLDs. In some cases that value is obvious because the TLD itself has tremendous appeal. In other cases it is not. In those cases one needs to create awareness through marketing and garner customers’ interest.

2) Distribution: Registrars and channel partners will be spoilt for choice in the ngTLD era. For TLDs that do rely on Registrars, winning their favor and obtaining prime shelf-space will be key.

3) Adoption: No TLD is successful until it sees patterns of growing adoption from its user base. Record-breaking registration at launch is not an indication of adoption. Renewal rates, utilization of domain names for the primary website (not just a pointer to a .com) and the TLD becoming a destination for a variety of recognized web properties will ensure long-term growth, sustainability and hence success.

ES: What is your personal favorite gTLD application, and why do you think it will be commercially successful?

BT: Each of our TLDs have been chosen after a tremendous amount of research and analysis. I do not have a specific favored one and am equally excited about the potential of all of the strings


About The Author: Elliot Silver is an Internet entrepreneur and publisher of DomainInvesting.com. Elliot is also the founder and President of Top Notch Domains, LLC, a company that has sold seven figures worth of domain names in the last five years. Please read the DomainInvesting.com Terms of Use page for additional information about the publisher, website comment policy, disclosures, and conflicts of interest.


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Comments (5)

    maraisspaulll

    Strike while the iron is hot!
    Count the money on the spot!

    June 6th, 2012 at 12:28 pm

    Samit

    Good interview guys! Congrats Bhavin, well on your way to making Directi a billion dollar concern.

    I don’t see the top end of .com getting affected too much, after all people who pay for those kind of names don’t want any other extension.

    Will be interesting to see how it plays out, cheers!

    June 6th, 2012 at 12:58 pm

    Steve M

    Guess the purpose of my new service:

    RepoGTLDs.com

    😉

    We’re going to be very busy in the years to come …

    June 6th, 2012 at 9:09 pm

    John Y.

    I think that the pending avalanche of Sooooo many new gTLDs is overkill….it could very well dilute & pollute the Internet …. ICANN’s allowance and enabling of such enormous volume of new TLDs seems ill conceived and reckless

    Some of the so-called “premium domains” within the plethora of “New gTLDs” may have a similar price & valuation trajectory as Flowers.MOBI

    June 7th, 2012 at 9:30 am

    rj

    Maybe he should spend some on improving his current registrars bigrock.com for one is a study in poor UX and customer service. It re-inforces the negative sterotypes on India based IT co.s I have never had as frustrating expriences in a decade as I have had with their registrars

    June 8th, 2012 at 7:49 pm

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