There are a number of reasons why I support the implementation of gTLD domain names, but I want to discuss the primary reason I am excited about them as a domain investor. I think investing in gTLDs will be highly risky, but with that risk comes the potential for significant financial reward.
For the most part, we don’t know for certain how quickly (or even if) gTLDs will take off with consumers and marketers. Perhaps gTLDs and brand TLDs will become used extensively and the result will mean higher values for good and relevant domain names. Conversely, just as easily, gTLDs could ne shunned by marketers and brands, and as a result could languish on the “shelf” at domain registrars.
It seems that everyone who invests in domain names has a very firm opinion on the matter, but irrespective of the person who is opining, it’s an educated guess and nothing more. My personal opinion is that TLDs like .aero and .museum do not foreshadow the dawn of new gTLDs, so I don’t think they can be cited as proof of an impending doom for new TLDs.
I see some smart money investing in relevant new TLD domain names as extensions like .CO, .ME, and .XXX come available, but I also see plenty of smart money sticking with .com as well. gTLD investing is certainly a polarizing topic, to say the least.
With that being said, there is and will continue to be considerable opportunity, but the costs are high. From the perspective of most, investing in good, new TLDs is expensive and out of reach. Although Meet.ME sold for $450k, how many people in the domain space (aside from full timers) would have been willing to invest thousands of dollars in a speculative investment like Meet.ME? Not many.
There is significant risk involved with investing in new TLDs, but there will likely be significant rewards for those who take the financial risk. There will always be people buying liabilities, but for those who invest wisely, the potential is high. The key is to invest wisely and invest if you know what you’re doing. If you plan to develop, well, have at it. But if you’re buying as an investment, be smart.
Investing in gTLDs isn’t for the feint of heart, but it’s one hell of an opportunity that we all have right now.