Frager Factor

Saturday, June 16, 2012

Financial Times: Companies Could Care Less About New TLDs

Like Rick Schwartz has always said (and is the first check mark on any sales pros bucket list of closing any transaction, "See John through John's eyes." 

And with the new TLD's John was never consulted.

If he was he would say he cares less,. According to the Financial Times:

"Wednesday was, according to Rod Beckstrom, head of the body that regulates internet domain names, “an historic day for the internet”.

"At a packed press conference in north London, Mr Beckstrom unveiled the applicants for the potential successors to .com and .org. Under a plan that some have dubbed the “web’s big bang”, Mr Beckstrom’s organisation is for the first time allowing companies to apply for their own web suffixes, replacing .com with their own “.brands”. 
As a result the number of so-called top-level domain names, such as .net or .org, will rise from 22 to hundreds. “The internet,” Mr Beckstrom said, “is about to change for ever.”
Some companies, however, clearly did not get the memo. While Amazon and Google applied for dozens of domains each, competing for potentially extremely valuable suffixes, such as .cloud and .search, the remainder of Silicon Valley seemed decidedly nonplussed by the process. 
Facebook, Twitter and LinkedIn did not make a single application. Apple, meanwhile, applied for just one domain – .apple. 
For some of the world’s biggest consumer-oriented companies, the internet’s big bang was more of a whimper. 
In total, there were 1,930 applications for new web suffixes. Speaking before the event, Mr Beckstrom expressed surprise that the final number of applications was not higher: “I thought that we would get 2,000, maybe up to 3,000, as this is a very unique opportunity for companies.” 
There were no applications for .coke, .pepsi or .disney, as many household names decided that the price for their own corner of the internet was too high. One person at a multi-billion-dollar online company, who declined to be named, said it did not take part because of the costs. 
“It comes down to return on investment,” the person said. “That kind of money is significant and there are other priorities and other things that it can be invested in.”
The piece continues, "It is a different story lower down the chain, however. If all the applied-for domains are approved, companies could be looking at an extra bill of between $100,000 to $200,000 per year just to buy up their original web address attached to the new suffixes, according to Charlie Abrahams, a vice- president at MarkMonitor, an online brand protection agency. They will also have to keep an eye on whether their company’s name appears with the new .sucks suffix, which had three applications."

As I have said before I follow on social media the smartest thought leaders on technology, Internet, business and marketing and there is not a peep of interest or excitement about new TLDs.

It all to me seems like a last ditch attempt to prop up a domain industry that has been fueled by speculation when all of the players know that navigation is going verbal and networks becoming walled and pay to play on platforms like Apple, Amazon and Google, some like Apple with the unbeatable advantage of having 400 million credit cards on file. Not to mention government regulation which will be finally forced from being kicked down the can, by an election year and promises to donors to clean up this shit..

We'll have to wait for the history books to know how this plays out. I only wish the best to my friends who have made investments in the space and are banking on information I must not be privy to.

About The Author: Owen Frager is an Internet marketing expert ready to help take your company to the next level.

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