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Not Chasing the Longtail of .AI

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The aftermarket for .AI domain names has grown tremendously over the last several years. A look at Namebio shows the growing annual dollar volume of sales that were publicly reported in the aftermarket.

  • 2018: $420.8k
  • 2019: $1.1m
  • 2020: $1.1m
  • 2021: $1.2m
  • 2022: $878.7k
  • 2023: $5.6m
  • 2024: $11.7m
  • 2025 YTD: $3.2m (my guess is $20m+ for the year)

These aftermarket sales figures do not take into account the number of domain names that have been hand registered by buyers for the registration fee. The .AI registry requires a 2 year registration, and the cost is approaching $100/year. By all accounts, the number of .AI registrations is also growing at a considerable rate.

Big Changes for .AI Expiry Auctions

Namecheap CEO Richard Kirkendall has shared many .AI domain name sales over the last year or so. NameBio lists more than 1,000 .AI domain name sales at Namecheap in its database.

This afternoon, Richard shared a handful of high value .AI domain name sales. He also shared some pretty big news about .AI expiry auctions going forward. Expired .ai domain names will now be auctioned exclusively at Namecheap. In addition, the auctions will be conducted daily rather than once a month as they had been running previously.

My Portfolio is Now 7.5% Non .com with a 10% Goal

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For years, I would almost never touch non .com domain names. Reflecting changes I have noticed across the aftermarket, my viewpoint has been evolving. My portfolio now consists of approximately 7.5% non .com domain names. My goal is to increase that to 10% by the end of this year.

I believe the top 3 extensions I own beyond .com are:

  • .CO
  • .XYZ
  • .VC

I am primarily an opportunistic buyer for domain names in alternative extensions. I don’t go out seeking to privately buy non-.com domain names like I do with .com, but I will bid on good opportunities I see in expiry auctions. I believe I have only spent low four figures on one non .com domain name. Everything else has been below $1,000 and mostly below $500. I am strictly a vulture non .com buyer, so there’s no need to pitch me your domain names.

How Advisors Address .IO Risks with Clients

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The .IO ccTLD extension could possibly be “phased out” if sovereignty over the Chagos Archipelago is moved to Mauritius. My feeling is that it is highly unlikely the .IO extension will be removed given the number of businesses using .IO domain names. There is still a chance it could happen, and businesses would be forced to change domain names and possibly rebrand if the extension is terminated.

With that potential risk in mind, I was curious to know if industry colleagues are broaching this topic with clients who are interested in buying .IO domain names. I reached out to a small group of people whose companies advise on domain name deals and broker the sale of valuable domain names to ask the following:

ICANN Discusses What Could Happen to .IO

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Last month, there were numerous articles that discussed the potential demise of the .IO domain name extension following news that the “UK will give sovereignty of Chagos Islands to Mauritius.” I suspect this was surprising news to many of the companies that operate on .IO domain names without any connection to the region where this ccTLD domain extension is assigned.

Video: Identity Digital Becomes Back End Provider for .AI

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Earlier today, Identity Digital distributed a press release announcing its partnership with the government of Anguilla to manage its .AI ccTLD. Now at more than half a million domain registrations, I believe .AI must be one of the fastest growing ccTLD extensions ever. As I understand, the entire .AI namespace has been operated by a fairly small team led by Vince Cate.

Identity Digital serves as the back-end provider for hundreds of domain extensions. Some of the country code domain extensions operated by Identity Digital include .IO, .AU, and .PR. The company also serves as the back-end provider for .org and .info, along with hundreds of alternative extensions like .Bet, .Lawyer, .Run, and many more.

This afternoon, representatives from the Government of Anguilla and Identity Digital held a press conference to announce the deal and answer questions. I am sure domain investors who buy .AI domain names – or those who are interested in buying .AI domain names – may have additional questions. The video of the press conference is below:

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