Is It Too Soon To Pass A Verdict On The Performance Of New gTLDs?

New gtlds stopwatch

With the new gTLDs having hit the market, everyone is trying to analyse the sales and the trends of particular TLDs to predict the growth of the new domain strings. We recently came across this blogpost/article on Calzone.org, titled “Rolling Average For TLD Sunrises – Will This Trend Continue?”. The article compares the Sunrise Period registration numbers of the new gTLDs with the previously released TLDs like .xxx, .co. asia and their respective Sunrise Periods registration numbers and stresses on a lack of initiative from Trademark holders during the Sunrise Periods for the new batch of gTLDs.

While the article covers a lot of valid points and accurate statistics, we believe that there are some other factors at play here. Which have also contributed to the relatively weaker performance of the new gTLDs launched so far. Here’s why we think the new gTLDs launch numbers can be analysed in a different ways and why it’s too soon to settle on any conclusion:

  • A lot of Domain name registrations during the Sunrise of the .xxx string and other previous launches exploited the then prevalent weak trademark rules to register premium names.
  • This is the first time that so many gTLD Sunrise Periods are overlapping. The domainers and Trademark holders could be trying a wait and watch approach.
  • The Trademark Clearing House (TMCH) has been somewhat successful at reducing the number of fraudulent registrations during Sunrise, which explains the lower number of registrations for the new gTLDs.
  • The figures used in the article list .xxx as having one of the best performing Sunrise Periods. This fact can also be attributed to the potential of .xxx having a lot more brand reputation damage as compared to any other generic TLDs which might have forced Brand Trademark holders to register to protecting their own brands.
  • The extension of services such as Donuts Protected Marks List (DPML) allow big brands with trademarks to prevent cyber squatting without actually registering domains. It is not clear whether such services are accounted for in any registration reports of new gTLDs so far.

The Way Forward

It cannot be disputed that the Sunrise numbers of new gTLDs have been lower than those of its predecessors but there is a marked lack of awareness in the end customers and a certain degree of confusion among domains registrars due to the sheer number of launches. Against this backdrop the role of registrars and resellers in market creation and dissemination of information becomes very crucial. Resellers need to realise that the introduction of the new gTLDs is the first time the internet domains are being properly classified based on the types of the business. The ResellerClub gTLD wishlist allows resellers and end-customers to stay updated on the desired domains under the upcoming gTLDs. This offers a lot of potential options for anyone that is looking to establish a new identity for a new business or for an existent one. The market is set to grow in the upcoming months if Resellers come together and increase the awareness of these new domain strings and adopt them themselves. Resellers need to provide sub-resellers and customers with important information regarding the stats, performance and release dates of the new gTLDs to increase demand and awareness in the market.

Resellers can check out our post on how to use the gTLD wishlist to their advantage and our post on the opportunities and challenges that the new gTLDs will bring with them. We will also keep you updated about the rising new gTLDs trends with our monthly reports. You can check out the monthly report for Feb and March, here and here. We will also try to keep you notified about any new Webinars, Events and Product activations related to the new Domain Strings.

If you have any doubts or queries, please feel free to contact us or leave us a comment below!