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TheDomains.com

$5.6 Million A Good Buy For .Realty To Compete with .Realestate, Realtor, .Property., .MLS & .IMMO?

October 23, 2014 by Michael Berkens

Last night the highest priced paid for a new gTLD of the three that were at the ICANN last resort auction yesterday was .Realty at $5.6 million purchased by domain industry veteran Jay Westerdal’s company. (The exact price paid was $5,588,888)

.Realty joins .Realestate; .Realtor; .Property, .MLS,  .Immo, (which is short for immobilier  which means real estate and is used in France, Germany and Italy) and to a smaller extent .House, .Condos, .Rentals and .Apartments.

Its a pretty crowed vertical.

So the question is was that a good investment based on all the vertical competition?

Where do you rank the extension in relation to the others?

.Realtor and .Realestate are owned by a group associated with the National Association of Realtors.

.Realtor domains will be offered for free for the the year to the first 500,000 members of the organization who sign up for their company’s domain name or their personal domain name ie JohnSmith.realtor, but Geo’s and other premium domain names will not be available on that basis.  So a realtor named John Cleveland would be able to get JohnCleveland.Realtor but not Cleveland.Realtor.

.Realestate will be somewhat registricted as well but premium domain names like NewYork.Realestate is a premium and be sold as such.

.Property will be unrestricted.

Back to .Realty, at $5,6 million acquisition cost if the  wholesale price (the price the registry charges to the registrars) is say $50 with a $99 retail price, it would take well over 110,000 domain registrations just to begin to break even not including premiums.

Assuming a share qualified real estate agents get a free .realtor domain, we can assume others may register A .MLS domain a  .RealEstate domain, a .Property or one of the others in the verticals.

Also remember that some of the largest cities in the world have their own new gTLD’s including Tokyo, New York London and Paris many of which work just fine for realestate ie brooklynrealestate.nyc or Flats.London

So at the end of the day how many new gTLD registrations will there be in the real estate vertical?

Enough  to make .Realty a profitable investment a .reality?

 

Filed Under: New gTLD's

About Michael Berkens

Michael Berkens, Esq. is the founder and Editor-in-Chief of TheDomains.com. Michael is also the co-founder of Worldwide Media Inc. which sold around 70K domain to Godaddy.com in December 2015 and now owns around 8K domain names . Michael was also one of the 5 Judges selected for the the Verisign 30th Anniversary .Com contest.

« 1st Day New gTLD Totals Are .Brutal: .Healthcare 1,406; .Vet 649; .Army 202; .Navy 122 .Airforce 116
A Rumble in the Bronx over a Couple .Nyc Domains »

Comments

  1. BrianWick says

    October 23, 2014 at 11:35 am

    good job jay
    you started domaintools and sold that to ammar and co.
    go got to figure every city town with a population of 10K or more will have a real estate agents that buys one of these – yes ?

  2. todd says

    October 23, 2014 at 11:37 am

    Since .realtor and .realestate are going to be exclusive to that one company then .realty easily jumps to first place out of all of these names.
    I am honestly amazed that .realty and .salon sold for almost the same amount of money.
    I wonder if Donuts wishes they would have dropped out of the .salon auction to spend more on the .realty auction instead.

  3. Zany says

    October 23, 2014 at 12:20 pm

    Michael,

    Not sure about your math. I suppose if he wants to recover his bid price within the first year then you are right. I expect that a 3 year return on investment is more reasonable. So say more like 37,500 names in year 1 with adequate renewals and new names sold that results in a growth rate of 10% per year…then we are closer to getting this investment back…obviously I am not considering the time value of money, opportunity costs, etc but to me that is a more reasonable way to look at it. so now the question is will he get 37,500 names in the first year at a $50 wholesale price? I doubt it

  4. DNPric.es says

    October 23, 2014 at 8:21 pm

    And yet, some of these new TLDs are much cheaper than premium old good .coms.

    So not surprised at all.


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