Jennifer Wolfe is a digital strategy advisor and executive leader. She is nationally accredited in public relations and the Co-author of Brand Rewired and Domain Names Rewired.
She runs a blog at Wolfedomain.com. On Friday Jennifer wrote a post entitled Dot Com Bubble (pt.2). I wanted to first find and read part 1, that post looks to have been written July 16, 2013 under the title of “New gTLDs and the Brand Bubble”
In that article this is what stood out:
What’s the Value of Your .com Now?
A final important question following the .com bubble – what’s your .com domain and brand worth now? The real answer to this question will depend upon how well you execute your business strategy. Your business strategy must evolve to thinking about how this next generation of the Internet will impact your consumers, users, customers, suppliers and stakeholders. This is strategic planning 101. A major shift is about to occur. To think about it requires some heavy lifting and leadership to recognize the importance of it. Your .com could be just as valuable if not more valuable if you plan correctly for it. But if you stick your head in the sand and hope nothing will change – your .com won’t be worth much anymore.
From the recent article:
After years of venture capitalists pouring billions into dot coms and often paying millions just to acquire the .com name, only to have the lion’s share of those companies completely flame out, is it any wonder that ICANN determined a high barrier of entry was required in the next generation of the Internet ($185,000 to apply for a gTLD)? No one may be crying over the lost VC money, the trickle down impact on the stock market has been felt by all. A brief history lesson provides some guidance. For example, according to John Cassidy in his book dot. con, the biggest venture capital deal of 1999 was $275 million for Webvan, an online grocery store. Two months after starting, it filed for an IPO, which was a new record in the craze of .coms filing for IPOs. It had lost $35 million on sales of just $395,000. Following this IPO, others quickly followed: egreetings.com, mothernature.com, smarterkids.com, ecollege.com, toys.com, pets.com and kozmo.com. The commonality among all of these companies – they had no revenue – only venture capital backing. The venture capitalists were actually creating wealth out of nothing by speculating and launching IPO campaigns.
What should we expect in 2014 as the first wave of new gTLDs start to launch? Will the same irrational exuberance emerge? Will companies based on ideas in the digital frontier receive the same enthusiasm or valuations? In my book, Domain Names Rewired, I asked a few experts how they compared the expansion of the internet with new gTLDs to the .com era of the 1990s.
Read the full post and what the experts said to Jennifer here
Jennifer Wolfe will be a speaker at Namescon.