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

Explore Topics

Industry Updates – Sponsored Posts

Meet Boston Ivy, Home to Some of the Most Specialized TLDs in the Financial Services Sector

Move Beyond Defensive Domain Name Registrations, Towards Strategic Thinking

Is Your TLD Threat Mitigation Strategy up to Scratch?

Verisign Launches New gTLDs for the Korean Market, .닷컴 and .닷넷

Verisign Opens Landrush Program Period for .コム Domain Names

Domain Management Handbook from MarkMonitor

Afilias Announces Relaunch of .GREEN TLD

New .PROMO Domain Sunrise Period Begins Today

US Court Grants DCA Trust's Motion for Preliminary Injunction on .Africa gTLD

Minds + Machines Group Announces Outsourcing Agreements, Web Address Change

.STORE Opens its Doors to Brands

Startup on .TECH New Top-Level Domain Receives $6.7 Million in Funding

United States Court Has Granted an Interim Relief for DCA Trust on .Africa gTLD

February Biggest Month to Date for Radix, Over 750K Domain Registrations

Radix & WHMCS Offer Free .HOST Domains to All WHMCS Customers

New .BET Domain Now Available to the Public

Radix and SnapNames Announce Exclusive Partnership

Radix Gives Its TLD .SPACE a Makeover

New .PET Domain Available to the Public

.Store Set to Launch in April

Sponsored Topics

Afilias

DNS Security

Sponsored by
Afilias
Port25

Email

Sponsored by
Port25
Verisign

Security

Sponsored by
Verisign
Afilias - Mobile & Web Services

Mobile

Sponsored by
Afilias - Mobile & Web Services