With all this fresh territory opening up, business owners might be
tempted by the expanding set of choices to stake out a beachhead, either
to extend their reach or as a defense against someone else squatting on
what should be their virtual real estate. But potential buyers should
take note of the following seven considerations before jumping in with
- Customer trust — Consumers have grown used to the existing set of
domains, and with that familiarity comes trust. The new domains are
unknown and may cause potential customers to hesitate before
establishing a relationship with a site with an unfamiliar gTLD. A
recent study found that consumers are in fact wary of the new domains.
Businesses planning to make use of the new suffixes should develop a
clear program to transfer the trust they’ve already established with
customers to the new site.
- Investment protection — Although it’s not entirely clear that domain age matters, even Google’s own search engineer seems to indicate that it does.
Assuming, then, that time in grade matters for search rankings and
traffic, visibility that has been built up over time in one domain will
not easily transfer to a new domain. So, if a business depends on
retail traffic coming in the virtual door, it should tread cautiously
before adopting a new domain, even one with a catchy suffix.
- Cost control — Existing domains like .com and .org, which can be
obtained from hundreds of registrars, typically cost about $10 per year
to maintain. New domains may cost a lot more. For example,
bespoke.bike, which is already taken, costs $29 per year at United
Domains. Even rogerkay.bike, which is eminently available, costs $29.
By contrast, rogerkay.com (taken) is only $9.90 on the same site, and
rogerkay.net (available) goes for only $14.90. But rogerkay.cab, which
uses one of the new domains, will set you back $39 per year. And some
domains, notably .sucks, are much more expensive than that. The problem becomes obvious once the company name is appended to the suffix (e.g,
But there’s more: for trademark holders, pre-registration pricing for
new domains starts around $200 and rises to as high as $25,000.
Choosing “priority” pre-registration for a “sought-after” domain can run
as high as $13,000 per name. But even paying this princely sum is no
guarantee of obtaining the name. When more than one party pre-registers
the same name, it goes to auction, with an unknown (and potentially
very expensive) outcome. Before stepping up to buy one of these new
domains, businesses should read all the fine print carefully. Note:
after the initial hype dies down, inflated domain prices should come
down, perhaps in a year or two.
- Partner motivation — Many of the new gTLDs will be operated by new
registry operators. Although most are legitimate, some may not have
much substance behind the fancy front. In certain cases, a registry may
be focused on making a quick buck from initial registrations in order
to flip its gTLD for a profit. Businesses expecting to enter into a
long-term partnership with a registry operator should choose one with a
- Partner reliability — Even with the best of motivations, new entrants in the domain business can make a number of mistakes that lead to failure. At the moment, even though lots of registry contracts have been signed, many of the new domains aren’t ready to
do business. In addition, inexperienced operators may have issues with
reliability, suffering downtime due to cyberattacks or technical
issues. Such interruptions may prevent customers from reaching their
desired sites, with the resulting loss of business. Thus, it is prudent
to choose a gTLD operated by a known, reliable operator.
- Potential for hijacking — With all the new domain names, there’s
going to be a lot of confusion. For example, ICANN has allowed both singular and plural forms to coexist.
Thus, .hotel and .hotels as well as .hoteles and .hoteis will likely go
live in 2014. Customers looking for jillsbnb.hotel may end up at
jillsbnb.hotels, and Jill will lose a customer. A gTLD without this
type of adjacent conflict, like jillsbnb.com, will likely result in less
- Name length — Although short domain names may appear desirable, longer ones often work better. For example, O.co didn’t work at all for
Overstock.comOSTK -4.48%. People kept typing in O.com, which Overstock didn’t own. In addition, longer names can include keywords that
will come up more often in search results. Keyword-rich domain names
attract higher click-through rates. If used, short names should be
minimally confusing and avoid conflicts with existing and new domains.
Businesses choosing a new name should follow established best practices.
Choosing a domain name is important in establishing a business’s
online presence, and making the right choice is not entirely obvious.
Caution is advised. As in real estate, location matters, and it’s
essential to check out the neighborhood before buying in.
article source : forbes