Recently in a CircleID blog, Alexa Raad, CEO of Architelos pointed out that applying for a new Top-Level Domain (TLD) is an expensive and lengthy process, costing an estimated $500K for application and various legal and professional services and that is assuming there is no other applications for the same string, nor any objection to the string being filed.
Ms. Raad pointed out that one of the biggest profit centers for any new gTLD will be the proper placement and sale of its premium domains.
“If the TLD presents a viable opportunity for capitalizing on premium names, then the key consideration is the size and value of the premium name inventory, and the right timing for releasing various batches into the market.”
” This can be used to stimulate awareness and generate additional cash for investment back into the registry to support other costs such as security, product development or simply additional marketing funds.”
Consider strings such as .Law, .Health, .Green, .Shop, .Site, which are effectively generic keywords as TLD strings, the inventory of premium names for each would be different and requires a credible analysis of not only size and valuation, but also the choice(s) of appropriate channel(s) and timing for release.
The PR and marketing strategy behind each would also be different depending on whether the string was a brand or a generic.
Bottom line The premium domain sales strategy and success can make up much of the initial profit the registry can make initially and continue for years after.
So it is a worthwhile investment to develop a credible and thorough business case that evaluates among the items mentioned in her blog?
Is there a premium names opportunity and if so, what is the size?
Should there be more than one phase of Land Rush and Sunrise?
If so at what prices?
The higher the landrush price the less applications there will be meaning possibly less revenue on average for the land rush auction domains.
A lower land rush fee will probably result in more auctions but will the total revenue be higher overall taking into account auciton premiums and land rush application fees?
Finally can you recoup your costs for sunrise verification by correctly pricing your application fees?
This is in part why Monte Cahn and myself launched RightOftheDot.com
This joint Webinar will not only cover the basics of a TLD business using the Business Case Builder tool Architelos has developed, but we will also delve deeper into the issues around premium names and Sunrise/Landrush decisions.
If you would like to be invited to this webinar series simply contact us at info@RIGHTOFTHEDOT.com.