Going global, making money in the local markets.
Over the years I have seen a flurry of new domain name extensions hit the market, some successful, some not. What makes a successful domain name extension is still up for debate, for most nothing appears to compete with dotCOM or it’s little brother dotNET. There is no doubt, dotCOM is going to be tops for many years to come. But just like what happened when Network Solutions no longer had its monopoly on the registrar business, the competition is going to start gaining ground. This will be in part due to the fact of the decreased amount of good dotCOM domain names still being available and also in part due to growth internationally in adopting the web as a way to do business. As more and more of the companies adopt the web as a place to do business they are more likely to start by targeting their local audience in their local language and currency. As a result, the local domain extension is a more valuable asset. Here in Canada 99.9% of the online stores I purchase from are using a dotCA domain name. As a consumer, it just makes me feel better. The dotCOM, though originally tied to commerce, has been made into a generic extension. Also like it or not, it is closely affiliated with U.S. websites.
So we can expect more demand for the various country code extensions? Well not only can you expect it, its already happening. According to a report released in August of 2007 by Verisign, there were 51.5 million CCTLDs (Country Code Top Level Domains) registered at that time, a 36% growth over the number at the same time the year previous. They credit the CCTLDs as a big reason for the continued strong growth of domain registrations worldwide. The three big boys: dotDE, dotUK, and dotCN. On the horizon we have the launch of dotASIA to the general public, with a huge Asian population world-wide, the potential for a large take rate is amazing. Keep your eyes out for this one.
Now, getting back to what makes a successful extension (or I guess what doesn’t), in my 6+ years in this business I have seen the launch of dotINFO, dotBIZ, dotMOBI, dotNAME, just to name a few. I don’t have the numbers right here at my disposal, but from personal experience and conversations, the least popular extension is by far dotNAME. And if you apply the logic I described earlier about the end customer being more about business and local, it makes perfect sense in hind-sight. The dotNAME is very much so a consumer focused extension, meant to be purchased and used by average everyday consumers for personal use. Not business. No affilliation to any location. Mind you the extension may still be doing well, the consumer market is not dead. Its just not as rich with opportunity for growth.
