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Dotcom vs New gTLD Extensions: What’s the Status?

September 17, 2014 by Admin Leave a Comment

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When consumers first began using the Internet there were only a handful of generic top-level domains (gTLDs) to choose from: .com, .org, .net, .info and a few others (this list does not include restricted TLDs, such as .edu, .gov, and .mil since they can only be used by specific types of organizations or registrants). While there have been attempts over time to increase the number of gTLDs, the efforts have not gone far, and the original—dotcom—remains the supreme leader.

A couple of years ago ICANN, the Internet Corporation for Assigned Names and Numbers, decided to allow companies, individuals, and organizations to create more specific domain names around hobbies, industries, businesses, cities, and more, in the hopes that it will increase competition and choice for anyone hoping to create an online presence (https://www.eurodns.com/international-domain-names/icann-new-gtlds/faq/).

What gTLDs Offer that Dotcom Cannot

There are several key features that supporters of the new gTLD system like to point out. First, anyone who registers a gTLD owns and operates a critical part of the online world, and will be in charge of any and all domains that register using that gTLD. These are virtual pieces of real estate, and like physical property it can represent a potential money-making opportunity for those who wish to buy, sell, and lease domain registries to others. Other benefits include:

  • Increased awareness and recognition for brands that register trademarked names.
  • More targeted marketing and increased online branding using unique and specific domains.
  • IDNs (Internationalized Domain Names) will allow for the use of non-Latin characters.
  • Geographic, cultural, or community-based TLDs can help bring together like-minded groups and citizens for causes and social interactions.
  • New gTLDs offer an opportunity to provide better products and services to consumers.

Currently there are close to 700 registered gTLDs in about 20 different categories (see the full list at www.newgtldsite.com/new-gtld-list). You can find broad TLDs such as “.medical” or more narrow ones such as “.[city name]”, and everything in between. The total number of gTLDs is projected to at least double, and could get much higher.

The Four Types of TLDs

There are a few different categories that new top-level domains will fit into, depending on what you want.

  1. General TLDs will be available for almost anyone to register with few restrictions. Examples of generic terms might include .movie or .furniture.
  2. Community TLDs will help raise awareness and rally support around a group or cause. The term “community” is not restricted to geographic areas, although you can get community-geographic TLDs with support of the local government in your geographic area. Other community examples could include religious groups, charities, or hobbies.
  3. Brand or trademark TLDs will be restricted to the companies or individuals who own the rights to the name, such as .Target, .Apple, or .Sony.
  4. Geographic TLDs are the final category for specific countries, cities, states, or even continents such as .Europe, .Paris, or .Texas.

There are also variations for TLDs in non-Latin languages, such as Mandarin, Cyrillic, Japanese, and Arab. Millions of applications have poured into ICANN for these domains, which are similar to Latin-based languages in terms of the available categories and potential extensions.

Many Consumers Not Ready to Switch

While the prospect of being able to target marketing, increase brand awareness, and encourage competition online is certainly intriguing for businesses and brands, recent statistics have shown that consumers still prefer dotcom over any of the new gTLDs. There are a variety of reasons that people have not been rushing to new TLDs, but often it boils down to the fact that consumers are familiar with dotcom, and worldwide brands have built a powerful presence around their .com websites.

In a 2012 interview Rob Grant, a “domainer millionaire” who buys and sells thousands of websites and domain names from his company WebMediaProperties.com, was confident that dotcom is not going away anytime soon. Its online presence—websites from the largest corporations to the smallest blogs—is undeniable. As with any strong brand, the introduction of several competitors often only confuses consumers and strengthens the one that everyone is familiar with (find details of his interview at http://www.thedomains.com/2012/07/23/rob-grant-on-the-new-gtlds-dot-com-will-always-win-the-horse-race/).

Almost by accident, companies and people have helped build and reinforce the power of dotcom. Billions of dollars in advertising have been spent on dotcom branding, with integrated campaigns across traditional media (television, print) and new media (web and social media) that solidify dotcom’s position at the top of the domain extension world.

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It’s also important to remember that this is not the first time new domain extensions have been introduced. As the Internet has expanded over the years there have been other TLDs, such as .jobs, .museum, and .pro. While they don’t offer the same personalization and brand differentiation that the proposed new gTLDs will, they have not gained enough traction to overtake (or even compete with) dotcom.

There is a caveat to the potential for a dotcom challenger—Google spent millions for over 100 new extensions, as did Yahoo and Bing, and if search engines decide to prioritize new domain extensions over dotcom, that could give gTLDs a boost.

Considerations for New gTLDs

There are a lot of other technical considerations that brands, companies, and organizations should consider before switching to a new gTLD. For example, there could be problems with website functionality when migrating from a .com to a .brand, search engines might have more difficulty indexing and identifying sites, and all the time spent creating reputable backlinks (which boosts SEO) will likely be lost. Brands should also consider whether their name would make a good extension by asking questions like:

  • Is your name short enough to make it easy to remember?
  • Are there similar extensions that might be easily confused with your .brand?
  • If there are other similar registries, is it worth purchasing all of them?
  • Can you manage the registry in a way that ensures it won’t become associated with “spam” sites?

Finally, consumers might just have difficulty finding your website since they are so used to the dotcom extension, which leads to decreased traffic and reduced conversions and sales. With all these potential pitfalls, the new extension might not offer enough value to give up on the branding that your current dotcom provides.

Since it first began the Internet has been changing and adapting to meet the needs and desires of its users. While the new gTLDs present an interesting opportunity for change, it may not be enough right now to push consumers toward this new frontier. Many companies are still waiting to see how it will play out before jumping headfirst into the fray.

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Filed Under: Web Hosting Tagged With: dotCOM, Extensions, gTLD, Status, What's

ICANN New gTLD Committee Bans Dotless Domains

August 19, 2013 by Admin Leave a Comment

August 16, 2013 — ICANN has decided to prohibit the use of dotless domains, according to a decision on Thursday by the group’s New gTLD Program Committee.

Keep on reading: ICANN New gTLD Committee Bans Dotless Domains


Web Hosting Talk News

Filed Under: Web Hosting News Tagged With: Bans, Committee, domains, Dotless, gTLD, ICANN

ICANN Investigates Technical Glitch Exposing gTLD Applicant Names

April 16, 2012 by Admin Leave a Comment

April 16, 2012 — The new generic top-level domain application system remains offline after a technical glitch ICANN discovered last week that allowed applicants to see file names and user names of other applicants.


Web Hosting Talk News

Filed Under: Web Hosting News Tagged With: Applicant, Exposing, Glitch, gTLD, ICANN, Investigates, names, Technical

Number of Available Domain Names to Skyrocket: A take on ICANN’s New gTLD Program

November 15, 2011 by Admin Leave a Comment

In my last post I discussed about how to best work towards attaining the right mix of money sites using management consultant’s BCG concept. Well this month we are dealing with a controversial ICANN policy that’s about to introduce new costs to your business. Internet on the brink of massive address explosion The landscape for  [ Read More ]
DNSblogs.com

Filed Under: Domain Names & DNS Tagged With: Available, domain, gTLD, ICANN’s, names, number, Program, Skyrocket, Take

Number of Available Domain Names to Skyrocket: A take on ICANN’s New gTLD Program

May 31, 2011 by Admin 1 Comment

In my last post I discussed about how to best work towards attaining the right mix of money sites using management consultant’s BCG concept. Well this month we are dealing with a controversial ICANN policy that’s about to introduce new costs to your business.

Internet on the brink of massive address explosion
The landscape for generic Top Level Domain Names is about to change for good or worse. If all goes according to plan, ICANN’s Executive Board meeting on 20th June 2011 in Singapore will approve the new gTLD Program. Afterwards the number of available domain names is set to sky rocket. And what many legitimate business owners have been fearing is about to happen. The right of the dot will become a matter of controversy if the new ICANN gTLD Program is approved.

New gTLDs Program
The new gTLDs are broken into 3 categories namely:

  • .brand TLDs: .GOOGLE, .BING, .CNN etc
  • Generic TLDs: .FINANCE, .WEB etc
  • Community / Special interest TLDs: .BERLIN, .LONDON, .PARIS etc.

Meanwhile ICANN has just published the new gTLD applicant guidebook for the general public to read and apply. For those who are not aware, the new gTLD application window already ended on 20th April 2011 (around 400 applications were received). The document includes:

  • introduction to the new gTLD application process
  • evaluation procedures (questions and criteria)
  • objection procedures (Wipo etc)
  • string contention procedures
  • transition to delegation (trademark clearing house, suspension)
  • applications terms and conditions

It is a very nice piece of document for anyone who wants to inform themselves about how the internet is about to change for good or worse.

Opposition to new gTLDs
As I have expressed my opposition here that I am not a fan of the new gTLDs because they are only going to confuse internet users and consumers. There are enough available domain names for everyone to register under existing country code Top Level Domain Names (ccTLDs) and gTLDs. Although the process of estimating the exact impact of the new gTLDs is complicated, there is consensus that the cost of doing business online for businesses will significantly go up. ICANN and other supporters of the program have touted it as a unique opportunity to promote innovation, business competition and consumer choice. I disagree with such a proposition because very few people are involved in the ICANN decision making process. ICANN meetings are free for everyone to participate but the traveling costs involved forbid the public from attending. This leaves it open for registrars and ICANN itself to pass own policies meant to line their pockets with money. As a domain investor and web entrepreneur I am opposed to the new gTLD program for a number of reasons:

  • the gTLDs will only increase costs for online business owners because they will have to fight for the same names they already own at highly inflated costs
    • $ 185k fee for successful applicants
  • new gTLDs do not serve the public interest but rather those of a few individuals

Why new gTLDs will fail

  • Prohibitively high registration costs and switching costs for website owners
    • transferring big sites from one domain to another is not a walk down the park
  • Inadequate mechanisms to prevent fraud and protect IP rights
    • can you imagine every big brand out there will need to apply for its TLD in order to defensively defend itself
  • Limited scope / counterproductive commercial application of such gTLDs – e.g. nobody needs .africa whereas other ccTLDs are not even widely used on most developing countries
  • lack of a global understanding and awareness of new gTLD program

On a positive note, the new gTLDs might draw significant attention to our industry, attract many newbies who will think of it as a get rich quick scheme and burn their fingers in the procecess.

Conclusion
All in all, if you take some of the factors I have mentioned above into consideration, I do not think the world needs the new gTLD program. But it seems like big money interests might win this time round. The costs of approving a gTLDs program which increases the number of available domain names far outweigh the benefits.

DNSblogs.com

Filed Under: Domain Names & DNS Tagged With: Available, domain, gTLD, ICANN’s, names, number, Program, Skyrocket, Take

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