Sunday, 21 October 2018
Agent Resource Center
This Old House - Do-it-Yourself

Driving Awareness and Adoption of New Top Level Domains (TLDs)

Written by Posted On Friday, 07 September 2018 17:14

What will drive consumer awareness of “dot com” to “dot something else?” Money, money, and more money. Why? Because it is the future of the Internet, the “Next Generation of the Internet.”

Much has been spent by corporate giants, to secure their position at the birth of Dot Anything. Consider that companies were willing to risk on average, $500,000, of which $185,000 was nonrefundable, with no guarantee that they would end up with the Top Level Domain (TLD) they were attempting to acquire. The companies that are foundational to the Internet as we now know it wanted in.

What if two parties want the same TLD?

If more than one applicant is contending for the domain, then the domain enters the “in contention” stage and the competing parties negotiate with each other and often the winner buys out the other applicants who then withdraw their application.

The company Coupons.com made a cool $4.8 Million as consideration for withdrawing its application for the .coupon new gTLD. Coupons.com withdrew its application leaving Donuts Inc, the only applicant for .coupons, the winner of what appears to have been a private auction or some other method to settle contention privately. Of course, it only cost Coupons.com $185,000 to file its application for .coupons, making this the best coupon the company ever redeemed.

Google competed with Amazon for many of the same names; in the case of the .app TLD, Google won at the final auction price of $25M. Other high auction sales so far are .shop that went for $45.5M and .store that went for $31M. The contentious battle among seven companies who applied to operate the .web suffix ended in a winning bid of $135 million, with speculation that .com operator Verisign backed the winning bid. For that kind of money and contention, the domain market indicates that .web could be even bigger than .com.

So, who gets the $135 million? It goes to Internet Corporation for Assigned Names and Numbers or ICANN, who has now banked over $235 million as a result of ICANN’s last resort auction mechanism. This system is used when several parties applied for the same suffix but were unable to resolve this contention by themselves.

Who’s In and Who’s Out (For Now)?

It is interesting and instructive to look at both the companies that acquired TLD’s in the last round and those that did not.

Many major international corporations have invested heavily in the “Next Generation of the Internet,” and they will be significant drivers of consumer behavior and the ultimate socialization and mass adoption of thousands of TLDs over time.

Companies that Invested in One or More New TLDs

Some of these companies, such as Google, acquired multiple new TLDs at great cost. The following companies acquired at least one new TLD:

Google, Amazon, Microsoft, Apple, Johnson & Johnson, SC Johnson, L’Oreal, Walmart, Safeway, General Motors, HBO, Comcast, Direct TV, CBS, ABC, Home Depot, Macy’s, Walmart, Target, TJ Maxx, American Express, Visa, Citigroup, Discover, JP Morgan, Barclays, Taco Bell, Marriott, Lionsgate and McDonald’s.

Companies That Opted Out of This Round

However, the process of applying for a new TLD is long and expensive, and the following companies sat out this phase:

Facebook, Twitter, eBay, Groupon, Verizon, Coca-Cola, Pepsi, Budweiser, Kraft Foods, Kroger, Giant Foods, NBC, ESPN, Viacom, Discovery, Lifetime, Time Warner Cable, Sony, Nordstrom, Saks Fifth Avenue, MasterCard, Wells Fargo, Neiman Marcus and Sears.

It will be interesting to follow these companies when ICANN announces the next round of TLDs at some point in the future. We may even find some of these giants pushing for another round sooner rather than later.

More than five years have flown by since the first new generic top-level domain (gTLD) was delegated on 23 October 2013. Today, hundreds of new gTLDs are available, giving consumers and businesses the opportunity to register second-level domains under descriptive new TLD’s such as .science, .guru, .xyz, .ninja, .pizza, and .wine.

You can read more from our series: "From Dot Com to Not Com in the Age of Dot Anything"
Article 1: A Brief History of “Domain Names” as the Evolution and Acceptance of “Not Coms” Continues
Article 2: Domain Names Represent Brands and Virtual Destinations…And Can Have Huge Value
Article 3: Navigating the "New Internet" and Why We Need New TLDs
Article 4: A Thousand Plus Top Level Domains for What? Who Cares? Google Does!

Rate this item
(0 votes)
Saul Klein

In 1948, doctors told my father that his life aboard submarines on war patrol in the South Pacific and the depth charging he experienced had rendered him sterile. Although controversial and not widely applied, he was treated with an Ayurvedic therapy called “shivambu.” If you are unfamiliar with this term, I recommend you Google it because against all odds, I came to exist.

That was a loony segue into my life but is a fitting precursor to a career that would be just as incredible.

Like my father, I joined the Navy. However, due to a medical inconvenience, I was honorably discharged after 6 years of commissioned service, all on Sea Duty. This was an opportune misfortune that led me down the path to a successful career in real estate. Both my father and grandfather flirted in real estate brokering and flipping part-time, and I followed suit but making a lifelong career out of it.

With over 40 years in real estate, it is impossible to talk about my experiences in this small window. But I can proudly say that I am well-recognized as an industry pioneer, especially in real estate syndication and education, and one of the few luminaries that paved the way for real estate’s transition to the online world.

Some highlights of my life’s work:
● Co-created ePRO, technology certification course that certified 70,000 students
● Created the first online communities for real estate professionals to network, learn, and sell
● Created "Opt Out" Listing Syndication, aggregating over 1.4 Million Listings in 18 months
● Built the #2 National Listing Syndication Service, Point2 Technologies, sold to Yardi in 2010
● Founder of the California Association of Buyer’s Agents
● Member of the first REALTOR.com Team, pre-IPO, responsible for obtaining first 500,000 listings
● Helped Zillow and Trulia build up their MLS data inventory

Today I continue to lead efforts that bring new technologies to the real estate industry. Feel free to reach out and learn more.

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.