Home / Blogs

Success Drivers of New gTLD Applications

Alex Tajirian

Being approved by the Internet Corporation for Assigned Names and Numbers (ICANN) as the owner of a new generic top-level domain (gTLD) extension requires considerable analysis before the application is submitted. You must understand the sources of risk, gauge your risk tolerance, and you must obtain an estimate of the value of your proposed TLD's future revenues (with the effects of potential competitors factored in, a step too many applicants ignore).

Acceptance takes more than paying the application fee or even hiring an expert to help you fill out the form. And if ICANN says no, expect your application investment to vanish.

Do your homework and you won't apply for unprofitable TLDs. Lose and at least you will have done your best. The victor will have overbid and/or they will have a better TLD value forecast because of a superior forecasting methodology or a better vision for the use of the TLD. .

New gTLD revenue is driven by the size of the market for the TLD, your market share of registrations, and the price you charge for registrations under your gTLD. Revenue can be estimated by using prediction markets and/or statistical methods.

No matter what estimation method you use, the risks include uncertainty about demand. Thus, depending on your risk tolerance and budget, you might consider applying for multiple TLDs or join an investment fund that pools together interested investors.

You should keep in mind that some of the new gTLDs can compete with .com and that you should seriously consider differentiations by being socially responsible. A list of proposed TLDs can be found at AboutDomains.

In conclusion, you must analyze gTLD revenue and the associated risks before you apply for a new gTLD.

By Alex Tajirian, CEO at DomainMart

Related topics: Domain Names, Registry Services, Enum, Top-Level Domains

WEEKLY WRAP — Get CircleID's Weekly Summary Report by Email:

Comments

To post comments, please login or create an account.

Related Blogs

Related News

Topics

Industry Updates – Sponsored Posts

Domain Name .Africa Faces Hurdles - Q&A with Sophia Bekele

LogicBoxes Announces Automation Solutions for ccTLD

List of New gTLD Availability & Key Information Provided for Download

Radix Launches .Space for Individuals, Freelancers and Professionals

TLD Registry Wins Best Marketing Award at China New gTLD Roadshow

Public Interest Registry Introduces 'OnGood' - New Brand Identity for .ngo & .ong

Victorian Government and City of Melbourne Launch .melbourne Web Addresses

Update on Minds + Machines' Top-Level Domain Launches

ICANN Los Angeles Recap Webinar

TLD Registry Appoints First China General Manager, Mr Jin Wang

TLD Registry Opens China Headquarters in "China's Silicon Valley"

.nyc Goes Public to Brand the Big Apple

pink.host: Breast Cancer Awareness by Bluehost

Introducing Our Special Edition Managed DNS Service for Top-Level Domain Operators

Radix Announces the Addition of .tech to Its Portfolio

Infographic: Where in the World Do Chinese People Live?

Public Interest Registry Seeks Leaders to Serve on its NGO Community Advisory Council

Auctions Update: MMX Wins .law and .vip

LogicBoxes Partners with I-Content to Implement Vertical Integration for .RICH and .ONL

General Availability Kicks Off for .Website, .Press and .Host

Sponsored Topics

Minds + Machines

Top-Level Domains

Sponsored by
Minds + Machines
Afilias

DNS Security

Sponsored by
Afilias
Verisign

Security

Sponsored by
Verisign
dotMobi

Mobile

Sponsored by
dotMobi