Why Gamble on New gTLD Domains Today?
The new gTLD domain names have been on the market for over a year now. There have been some publicly reported aftermarket sales, but I think it is a very small percentage of the weekly sales (by volume and value). I am still mostly on the sidelines when it comes to investing in new gTLD domain names.
I didn’t invest .com domain names in the 1990s. I didn’t even buy great .com domains until the mid to late 2000s. Despite this late entry, my business has still grown and flourished. There are plenty of other examples of people who have done well after entering the business “late.” In addition, there are many people who started out investing in domain names in the 1990s and grew their tremendously after the .com bubble burst.
I don’t see the need to invest in new gTLD domain names today. I believe the risk still outweighs the reward, especially with some registries keeping the better keyword domain names to themselves while asking very high prices for them. I would do the same as them if I were in their shoes, but for my business, it doesn’t make sense for me to gamble on these domain names today, especially at premium pricing.
In the future, if I feel see these domain names being used and being highly sought after, I can jump in and start buying these domain names in the aftermarket. Sure, I will probably pay a premium when compared to today’s pricing, but I am also likely saving significant amounts of money by not having to pay renewals until that point of time. I also don’t have to guess which extensions are going to be popular and which are aren’t going to be favored. Instead, I can wait and see, and if I choose to invest, I will have enough data to make smart decisions.
My business was built on buying great domain names that have value today. I would rather pay $5,000 or $10,000 for a domain name in 5 or 10 years knowing that it has aftermarket value than spend that much on what I would consider a gamble today.
I don’t begrudge people who invest in the new gTLD domain names, but it doesn’t fit my business model right now. Maybe I am missing the boat on this, but I got a late start to buying .com domain names and things have worked out alright. I simply don’t see much benefit to investing much in the new gTLD domain names today.
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