The International Trademark Association (INTA) conducted a study into new gtld registrations. I thought this was interesting when it came to premium pricing, 15% flatly refuse to pay premium pricing and another 6% pay for top marks only.
They uploaded the survey results to the ICANN community wiki
From the report:
REGISTRATION ACTIVITY IS HEAVILY DEFENSIVE
INTA members are active in the registration of domain names, including new TLDs.
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Vast majority (97%) of members registered domain names in past 24 months, with 9 in 10 registering new TLDs. But the volume of registrations varies widely across companies.
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Registrations of new TLDs were overwhelmingly made for defensive purposes—to prevent someone else from registering it. As such, few (10%) felt there were alternative domains to consider—whether registering a New, Legacy or ccTLD.
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Parking these domains is a very common practice. Redirection is also common, but less so for the new TLDs.
PREMIUM PRICING AFFECTS MOST
Members (73%) evaluate premium pricing on case-by-case basis and most (67%) say they are affected by it to some degree.
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The majority (73%) of members evaluate premium pricing on a case-by-case basis, while 15% flatly refuse to pay premium pricing and another 6% pay for top marks only.
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In general, two-third (67%) of members feel their domain name registrations have been affected by premium pricing (notably .sucks).
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Half of the members (55%) have observed evidence or examples of discriminatory pricing or unfair business practices related to new TLDs.
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For legacy TLDs, only 2 in 10 (21%) are aware of premium pricing.
NEW TLD ENFORCEMENT—75% TOOK ACTION
Most typically take action via cease and desist letters and/or UDRP.
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Three fourths (76%) of members have taken action against domain name owners using new TLDs by sending cease and desist letters and one in four (27%) have used UDRP proceedings.
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Few have taken the next steps of Civil Actions, URS Proceedings, ACPA Lawsuits/Appeals and Trademark Infringement Lawsuits/Appeals (between one and 4 members for each).
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Three fourths (76%) have spent more than $1,000 on Cease and desist letters in the past 24 months.
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While less common, those who have taken UDRP actions spend 3x the average of cease and desist efforts.
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Actions against Registrars are much more common than against Registries. Costs against Registrars average almost $8k.
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Most receive responses from letters sent to privacy/proxy services.
Eric Lyon says
Sounds about right to me. I can’t deny that I own some new gTLD domains that were acquired specifically for brand defensive purposes.
HIGHEST.DOMAINS says
At the end a def. also reg. strengths the brand, so it has also ‘positive side’.
It’s also some kind of ‘status’ in how much TLDs your brand is registered – Google, Facebook f. e. etc. reg. (or DPML) their brand/s in many TLDs.
HIGHEST.DOMAINS says
Typo correction:
At the end a def. reg. also strengths the brand, so it has also a ‘positive side’.
Nick says
that is ridiculous
HIGHEST.DOMAINS says
that is ridiculous
Domo Sapiens says
Shocking news.
This was called by many experienced domainers way ahead of time (even before the new gTLDs came out, 5 years ago or so)…
One more time:
Frank Schilling Live From London: “.Com Will Become Like AM Radio”
Sept, 2013.
Bull S**t!
At the Institutional level … here comes obvious consolidations & distress sales, then catastrophic FAILures
steve says
The correction in the GTLD market began late last year.
I wouldn’t even begin to speculate what extensions will survive. I have only a few — and they relate directly to a few of my company’s offerings.
I still like .club, even though I don’t have any. And I’m bullish on .web, if and when it ever launches.
Domo Sapiens says
Here is another enlightening moment…:
“For the third week in a row, there is not a single startup on the *list that decided to use a new domain name extension” (*Recently funded startups)
http://dngeek.com/2017/07/78-newly-funded-startups-domain-names-soldo-com-wonderschool-com-cleancapital-com/
Zero New gTLDs, 3 weeks in a row…
Eric Lyon says
DomainGang published an article yesterday pointing out how the random 3 letter .com’s have now dropped below the $20k mark in sales. So we can’t really blanket all new gTLDs ad having growing pains. There’s more happening under the hood than meets the eye and nGTLD’s are not the only ones being affected. 😉
Domo Sapiens says
Eric: on re to the LLL.com market “*serious price correction” my friend that is in a way “Old News”.
Not sure who the gang is or where it has been but this “price correction or crash’ has been discussed here several times in the last weeks if not months…
(* ex-premium)
Wake up and smell the coffee on regards to the Not-so-new gTLD’s:
1) There is No resell /secondary market (None) at any level (End user nor domainer)
2) Startups don’t want them (read the above)
3) The majority of the registrations are of the ‘defensive’ type…
(strange that you just recently agreed to that, what change in a matter of hours?)
Robert Fernandez.
(disclosure: I am not dependent on new gTLD’ ad dollars, which are bound to dry out once they go into survival mode)
Eric Lyon says
If there was absolutely no end-user interest as you suggest, then why are there so many being reported in the wild (E.g. On billboards, commercials, vehicle wraps, website developments, office signage, etc.)? There’s obviously some demand there for companies to be investing in brand exposure campaigns using them.
The industry landscape is changing, it’s inevitable, the quicker people embrace the changes coming, the better off they will be. Everything eventually changes (History proves this time and time again). Those stuck in the “.Com ONLY” mindset of the 90’s will get left behind as the Internet and domain industry continues to progress and push forward.
To each, their own though, I do wish you luck in your .com only business strategy.
Note: Please reread my previous comments to try and understand them better before you take them out of context to support your .com ONLY agenda. I clearly stated: “I can’t deny that I own some new gTLD domains that were acquired specifically for brand defensive purposes.” – “SOME”, not all. Most companies use multiple strategies when it comes to their business. Anyone that just uses one strategy, with no diversification, and doesn’t adapt to change is doing it wrong and subject to repeat history.
Have a wonderful day.
Hans says
.info is on billboards too. It does not matter. Most extensions are dying.
open your eyes.
3L are dropping because Chinese pumped up prices and left for crypto. It has nothing to do with the domain market itself. 3L.com will not go away. Most extensions will die.
Hans says
There are not many in the wild if we look at the percentage of .com vs. new extension.
When domainers see a new extension they take notice because it is unsual. when they see a .com they don’t care because it is normal. this leads to a certain kind of bias where you believe new extensiosn are not that uncommon. They are. Adaption is simply not significant enough.
Eric Lyon says
That percentage you mentioned is because .com has been around a lot longer than the new gTLDs right? Obviously, there’s going to be more in the wild.
Ya, nobody believed the rottary phone or pay phones would ever phase out either. (Looks at his smartphone).
Anyways, Let’s hope you’re right and .com becomes the first thing in history never to change. Personally, I embrace change and I am ready for the next chapter in history.
Good luck out there.
Domo Sapiens says
Numbers don’t lie:
“For the third week in a row, there is not a single startup on the *list that decided to use a new domain name extension” None Zero Nada
This week as often is the case at SEDO Weekly Report New gTLDs sold = None Zero Nada
Here comes the .xyz exodus .. millions
The hope for .web to be the savior, the catalytic is dead… in lieu of his new owner.
There is no reseller market, you can see that at NP, start-ups shun them, what is the expectation?
1000 rolling tumbleweeds
I feel like you guys are waiting for some kind of a miracle…