New gTLD Innovation
Whether they are restrictive or not, registries are there to offer registrants (those who buy domain names) more choice. It is also possible to use a domain name extension for a personal use: these are called .BRAND new gTLDs (specification 13). The problem with registries is that they are now...too many on the market of domain names and registration volumes clearly show that the results expected are just not there. It's time for innovation.
Selling domain name is not the only option
New applicants for a domain name extension believe that selling domain name through the network of accredited registrars is the only way to make a registry profitable: "on the paper", that is correct but there are different ways to do this.
At Jovenet Consulting, we see what's happening with all these registries who strongly believed that they would sell thousands (millions) of domain names in their first year of business. This has just not happened for most of them and various methods have been tried to change this, but which have worked?
- Giving domain names away has shown that renewals did not come with it;
- Selling at a very low price does not work: many of these domains - when they are renewed - are often used for phishing, spam, malware propagation, completely destroying the image of the registry;
- Selling at an ultra high price might be profitable but I have long been trying to find out about this and none of the registries I asked the question to ever answered me;
- Selling Premiums domains: I read what registries say about them and I sincerely want to believe what they write but do you launch a registry to sell Premiums?
- Parking domains has shown that it cost more to renew a domain name than the benefit generated from advertising.
Examples of innovation
Presidential elections is something that is taken very seriously in many countries and where a lot of money can be spent to offer one candidate a strong coverage. Social networks are a powerful tool but a new domain name extension dedicated to covering elections can even be a much powerful solution. Contact us for details.
Generating an income from selling domain names through the network of accredited registrars is the purpose of registries (but "dotbrands" domains which are not sold). According to how a domain name extension is marketed, a percentage of each sales from the registry to the accredited registrar can be "given" to another cause: planting trees for example. If it makes no sense asking end users to buy one domain name ending in ".tree", it makes more sense to ask major corporations to contribute to planting forests a different way: we are talking about partners to such a project who are going to finance it. This is where famous organizations dedicated to planting trees should position themselves: corporations can lower their taxes when contributing to planting trees.
Become a Monopoly
Registries are "legal monopolies": there is one legal entity authorized to operate a new gTLD, not two. It might not make sense to apply for a Top-Level domain to sell domain names and generate an income from it...today, but what about in 10 to 20 years? For example, wouldn't have a famous Tennis trademark , have wanted to become the only governing body of the tennis online identity if it could have in the first round of the ICANN new gTLD program? There were 1,500 ".tennis" domain names created in December 2017 but thank to coming generations, how much will there be in 10 to 20 years?
The Universal Directory (Yellow Pages)
Project John Wolley is a concept of universal yellow pages based on the use of a single ".brand" domain name extension where each domain name is a city/village name. Full 33 slides of the project were removed but are now available on demand (business model, case figures, IP, trademark...)
Round 2 is coming...
...and many candidates don't want to submit a new gTLD application to find out that it will cost them more to maintain, than the revenues generated by the sales of their domain names to the network of accredited Registrars.
There are specific TLDs with potential to consider and new method(s) which have proved that selling domain names - as a Registry - can be profitable. At Jovenet Consulting, we are happy to help you considering innovation instead of playing the standard way: hire us for your next innovation.