gTLD Debate: generic Top Level Domains – Wise Investment or Total Rip-Off?

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What do you know about generic Top Level Domains? For a lazy US$184,000, you could get a .yourbrand domain extension to replace current .com and other conventional extensions. The AFL is signing on – would you?

Do you have a view on gTLDs (generic Top Level Domains)? Currently being implemented by the Internet Corporation for Assigned Names and Numbers (ICANN), companies can apply for a license to own a branded Top Level Domain. The Australian Football League announced that it has applied for a new .afl gTLD. AFL general manager of strategy and marketing Andrew Catterall told Fairfax that a specific AFL top-level domain name would help the football code expand and protect its brand, and create new commercial opportunities.

But at $185,000 for a license, would you consider it? Our content creator Campbell Phillips asked DealsDirect Executive Chairman Paul Greenberg for his thoughts on gTLDs.

Why have gTLDs in the first place?
In the increasingly fragmented and atomized world of cyberspace, brand owners/managers are “  desperate” to own their brand in totality. gTLD’s appear to me as a concerted effort for large brands ( because of the costs) to ring fence their brands in cyberspace. I understand the psychology but I think cyberspace can’t be corralled.
What is your general position on expanding (potentially without limit) the number of gTLDs? How could they affect your business?
Well the paradox is that within the ring fence of your brand, the permutations are endless. At this stage, I am not convinced that this will fly. So have not spent too much bandwidth considering effects. Our exec team are playing with the scenarios.

Estimates to purchase a gTLD currently sit around $185k, does this sound like a good value proposition?
As I understand, the investment of $200k plus minus would also include a “ licence” to be a domain name reseller. Together might make sense for a business like ours that is becoming a diversified ecommerce group. A business in a business maybe?

Is this a technology that has the potential to confuse consumers?
I think we have seen the .co and .biz and similar not get off the ground. So, in fact I do think that consumers want to keep it simple.  I believe the .com is still the ‘mothership’ for global brands, and will remain.

Is there a real security threat inherent in this plan? Will it provide cyber criminals with an easier way to ‘hide’ behind false online identities?
This is a never ending challenge. Where there is change and disruption, cyber crims will be circling. I think advocates of gTLD’s would argue that it would reduce cyber fraud, but certainly confusion in transition times will be exploited. Might get worse before it gets better?

Will further changes to the internet potentially render gTLDs obsolete?
This is the key point. How do you lock in certainty around an increasingly fluid environment? Building a skyscraper on quicksand? That is the challenge of the gTLD strategy. A big investment in something that might morph and iterate.

What’s your take on generic Top Level Domains? Wise investment or giant rip-off? Share your views on this hot internet topic.

Article by Grant Arnott

Grant Arnott is the editor and publisher of Power Retail. Other hats include Content Manager for the Online Retailer Conference, Program Director for the Online Retail Industry Awards, Global Head of The Media Pad Pty Ltd, and adoptive father of a fast-growing Golden Retriever. Grant has a specialist business publishing background spanning more than a decade, and contributes regularly to a multitude of print and digital business media.

One Comment

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  • DomainCo
  • 27th February

  While I think the new TLDs are a nice Brand Building opportunity for large companies I don’t think it will ever be a viable reseller opportunity.

  Reply