Because Sedo is a sales platform that serves as a venue for domain names of all extensions, and because of the breadth of its sales, I think company CEO (and co-founder) Tim Schumacher is well positioned to opine on the impact gTLDs may have on the value of domain names.
So does Tim think gTLDs are going to change or devalue the price of existing domain names? According to Schumacher, “the answer here is simple: No. The addition of a new gTLD will not affect prices in the secondary domain market.” Schumacher continued, “for example, the introduction of a number of new gTLDs in 2001 (.aero, .biz, .coop, .info, .museum, .name, and .pro) highlight how some extensions flourish, while other do not. I’d imagine many of people would not have even realized that some of these TLDs were launched. The inconvenient truth for any new gTLD is that, in 2001, you needed a .com to start a business (or a country-specific equivalent) and that rule still applies ten years later.”
I’ve been hearing quite a bit of buzz about .XXX domain names, and Schumacher commented on that extension as well. Said Schumacher, “while the .xxx extension is receiving much media attention of late, without a mandate to force adult content to the extension, it’s simply another new extension that brands should be aware of.”
One thing that will be interesting is to see whether Sedo has any restrictions on selling .XXX domain names. Sedo has an adult domain name section, and I am curious about whether they will push all .XXX domain names there since they currently look to the left of the dot for cues.