Domain names registered by early internet investors in the 1990s are now being sold for millions of dollars. For those who missed the initial investment opportunities in the internet, new prospects are emerging in the domain name trade.
These opportunities are shifting from the left of the dot to the right. In addition to the sale of domain names previously valued in millions, extensions are now trading hands for similarly high amounts. Companies can apply for an extension in their sector instead of paying millions for a generic domain name.
Consider the insurance sector in the US: INSURANCE.COM was sold for $36 million in 2010. In contrast, the cost of operating the .INSURANCE extension in the new Top-Level Domain (TLD) application program and the fees paid for ICANN applications are less than a tenth of what was paid for INSURANCE.COM.
Furthermore, while INSURANCE.COM is just one domain name, all domain names under the .INSURANCE extension can be leased. Depending on the pricing policy, a domain name could cost between $10 and $200 per year, with some even more expensive.
Another benefit is the global recognition of your extension. This can provide a prestigious internet presence, often surpassing the prestige offered by a name like INSURANCE.COM.
This approach is also seen as a viable investment tool, even for companies with large SEO budgets. Brand extensions, in particular, will hold significant importance.
Applications for extensions are made during specific application windows set by ICANN, unlike domain names which can be registered at any time.
In ICANN’s first application period, nearly 2000 applications were made. As of the last quarter of 2014, the launch of these extensions was underway, with some already available for sale and use. The finalization of other extension applications was expected in the first half of 2015.
The timing of the next application period is uncertain, but it may open in late 2015 or 2016.
However, it’s not too early to begin preparations. Although the opportunity to acquire .COM domains has passed, there is substantial potential for new extensions. The time is right to start working on applications for these new extensions without missing this chance.