After the developments this week we are ready to make an early prediction on which company is going to make the most off the new extensions.
By a mile its going to be Godaddy.
Godaddy announced this week that the have a market share of 50% of every new domain registration.
Think about Google and search.
What is your perception?
Google owns the market, right?
Yahoo, Microsoft and Ask.com are just also ran’s.
What is Google’s actual market search share?
Google has three main competitors.
How many domain registrars are there?
Once you hit that 50% mark (and growing) in any space or industry you become to be the one company that no one can ignore.
Not only can’t you ignore a company with that type of dominant market share, you must do business with them.
At all costs.
Otherwise you give up 50% of the market right off the bat.
If your going to start a registry and go after one of these new gTLD’s, or even launch a new ccTLD (.co is next) one of your first concerns must be, how do we get Godaddy.com to accept our registry on their site.
Godaddy does not have to agree to sell every TLD or every ccTLD. Like any registrar they can choice which ones they sell and at what price.
If your a registry, your not only going to have to consider, how do we Godaddy to sell our extension, but how are we going to get a major presence on Godaddy.
How are we going to noticed on Godaddy when there are hundreds of new extension vying for the same space?
Checkout Godaddy.com “Start your domain search here” drop down box on their main page.
That is real estate.
Very, very valuable real estate if your a registry trying get people to register domains.
That’s Time Square. 5th avenue and Park Place all tied up into one.
The drop down extension box is defaulted to .com.
The next extensions listed are .info, .net, .org, .me, .mobi, .us, .biz, .mx, .ca, in that order.
The drop down box only contains 60 extensions in all including many varations of the same ccTLD (6 for .in variations alone).
With a 50% market share of all new registration, if you want to start a registry and sell a new extensions, you better get on Godaddy.com drop down menu and Godaddy knows it.
This put Godaddy in a unique position of demanding higher commission from registries for inclusion on their site and even higher commission or compensation for inclusion of their extension in the drop down box.
It only makes sense.
You want a higher placement in the drop down box, you will have to pay more.
Pay for inclusion, Pay for position, you can demand and get this when you own 50% of the market.
Remember the Business 2.0 story from a few years ago entitled:
“The man that owns the Internet”
Its not Kevin Ham.
Its Bob Parsons.