Think before registering a “new gTLD” domain

TLD stands for Top Level Domain. It’s the last part of a domain name – for example “.com”. The “g” stands for global which just means it’s not tied to a particular country.

About a year ago, there were just a few gTLDs and everyone wanted a .com for their business, their brand or their own name. .com was thought to be the most credible option since it stands for “company”.

The web has been around a long time, though, and good .com’s are in short supply. If you’ve ever had a great idea for a business name or a product name only to find that the .com is taken and isn’t being used for anything in particular, you’re not alone. Because they’re cheap to register and keep, and potentially very valuable, some people have made a very tidy living from hoarding good names and selling them at very inflated prices.

To try to solve this problem, about a year ago, a lot more TLDs arrived. Coffee shops can get a .coffee, clubs can get a .club, accountants can get a .accountant and so on. We very quickly went from a small number of TLDs to a huge catalogue.

For a lot of brands and businesses, it means that you can finally get the name that you actually want.

But it isn’t quite that simple.

Each gTLD, new and old, is maintained by a company. That company leases names on gTLDs they own, to wholesalers (“registrars”) who sub-lease it to you. The older gTLDs are generally provided by Verisign, an American company that has been doing this since around 1985. Over the last 32 years, they’ve not changed much. Their prices have increased roughly in line with inflation and there hasn’t been any notable foul play.

The new gTLDs are owned by a range of other companies. The best known is Uniregistry. There isn’t any evidence of foul play from Uniregistry either – but they don’t have the decades of stability that Verisign has.

Because of the regulations governing TLDs, instead of giving notice to increase their prices, Uniregistry have set fairly high prices for many of their extensions and have discounted them initially to gauge demand. This means that they can effectively increase the price of domains at the top of a hat if demand isn’t what they had expected. This has already happened to some of the extensions, including .guitar and .hosting.

In conclusion, you don’t get any more or any less guarantees buying a “new gTLD” relative to a traditional one. You do get more uncertainty, though.


Posted on November 14, 2017 at 4:37 pm in BusinessBusiness BenefitsHow toUncategorized

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