I don’t want to weigh in here to possibly influence the vote tally, but I am curious whether you think the new gTLDs are going to change the domain industry. I am not asking about specific changes to any particular TLDs, but I am wondering if you think they are going to change the landscape of the domain investment space.

Of course, you may feel free to post commentary about any changes you expect or why you don’t expect changes in the comment section. This may seem like a loaded question, but I am wondering if you think the industry and way we do business will change when new TLDs are released to the public for purchase.

I wonder how the CNBC reporter responded when he was asked to cover the AVN Adult Entertainment Expo currently being held in Las Vegas. That aside, I think there was a pretty balanced article posted on CNBC this morning discussing  .XXX domain names in the adult business.

The article primarily focused on the perception of .XXX domain names to various people within the adult entertainment business. Of course we pretty much know how Manwin, the largest company in the space, feels about .XXX domain names. They’re in the midst of litigation.

Steven Hirsch of Vivid, Scott Taylor of New Sensations, and John Stagliano of Evil Angel were all fairly outspoken about the issue. These company leaders don’t appear to have a favorable view of .XXX domain names or the need for them (Hirsch did appear pretty much neutral on the issue).

As for performers, it seems that .XXX domain names may be good for them. I’ve heard this from a variety of sources, but it seems that adult performers like being able to own their own brand, and .XXX domain names gives them that opportunity. Adult actress Stormy Daniels summed it up best with this quote in the article:

“I think, from a performer standpoint, it’s a very good thing,” she says. “So many girls can’t get their names as domain names because someone beat them to it — whether it’s some guy in a basement or an ex-boyfriend. … The cool thing about .xxx is they will only issue the address to someone who holds the copyright or if you (as a performer) can prove you are who you say.“

I am not personally opposed to .XXX domain names, although I haven’t invested in the extension. Have you bought or sold .XXX domain names?

I read Sedari’s press release (posted on TheDomains.com) announcing a game for people to guess how many applications will be received in the upcoming gTLD program. The winner of this game will receive “publicity and the admiration of the entire ICANN and domain name world for getting it right courtesy of Sedari.”

When I read the press release, it reminded me of something similar done by Minds & Machines CEO Antony Van Couvering back in 2008, when he was blogging much more regularly. Incidentally, Van Couvering’s Names At Work blog is on the short list of publications that should be read by people considering a gTLD application because it has a TON of insight. Van Couvering’s email was sent to a number of people who operate within the domain industry. Van Couvering asked:

For the record, how many new TLDs applications do you think there will be?
I’m asking people I know, and I’ll post the results on my blog.

Shortly after sending the email, the results were published, and the guesses ranged from 9 to 500. Now that 3.5 years have passed and it really does look like the gTLD program is moving forward very soon (january 12), it will be interesting to see how the perception has changed.

I had guessed just 12 applications back before I knew a whole lot about the program. If I was given the opportunity to revise my answer, I would guesstimate somewhere around 271 applications.

In my opinion, sometimes the absolute best deals are usually made before launch, and they’re generally made in private, behind closed doors, with terms unavailable to the general public.

The sellers want to use the funds to pay back earlier investors, to fund growth expenses, or simply to line their pockets. The buyers want to get deals that won’t be available once the opportunity becomes publicly available, and they want to cut deals that leave room for huge profits down the road. Both the buyers and sellers take a risk in these deals, but they may work out well for both parties.

No, I am not referring to deals for gTLD domain names like the ones Frank Schilling and Mike Berkens made with .XXX or even the development deal  I made with the .CO Registry.

I am speaking about venture capital deals and angel investments made by firms in companies that are closely held and privately operated. VCs make big financial investments and gambles when they invest in a startup, and their hope is that the startup flourishes and allows them to profit from their stake. There are no guarantees an investment will work out, but they hope to invest in more winners than losers.

Similarly, as you may have guessed, domain investors have been able to make deals with domain registries to buy and/or develop premium domain names before they’re available to the general public. No guarantees are made with respect to making money on these investments, but domain investors take these risks to be in a good position should the TLD become used and valuable. Registries are able to use the cash to fund operations, and the investments are used per the terms of the agreement.

While some assail these “back door” deals, I personally have no problem with them. They involve private entities mitigating risk and making investments, and while the general public may not necessarily benefit, that’s business.

If you feel strongly about a particular extension/gTLD and can afford to make an investment, perhaps you should make the right contacts and try to work out a deal. While some of these types of deals aren’t publicly advertised (founders programs aside), they can be had simply by meeting the right people and making the right offer.