According to a research, the lack of memorable and qualitative domain names as dotcom limits the Internet growth with 25 percent of the total domains registered, instead non .com domain names are lifting the number of registrations. This study points out that ICANN’s launch of new TLDs is proving a profound policy. Who would have thought that with its popularity dotcom is decreasing from numbers.
The research suggested that cutting down the effective and recognizable word compound drops the domain registration more than the expected, which comes in supporting what pioneers claimed for: more valuable TLDs.
From 294 million since 2015 summer, over 73 million possible domains were obstructed from being registered thinking they won’t drive traffic for professional and personal aims.
Despite this situation, ICANN started to release new TLDs for any word, doubling the non .com domain names, meaning a substantial increase in the domain registrations.
Dr Thies Lindenthal, from University of Cambridge’s Department of Land Economy said that:
“The snappier and more recognisable a domain, the more it is going to be worth. What I find fascinating is that the observed transaction prices of domain names reveal a free market valuation of linguistic characteristics and language itself.”
If annual growth to the domain stock started to delay from 2007, re-sale prices of already domain names registered increased with 63 percent, showing a demand for attractive names. To solve the extension of domain supply, ICANN has recently released 1,400 new TLDs, non com domain names and Google was the first who contributed to this domain name shortage with the new dot-xyz domain.
Nowadays significant amounts of money are spend on non com domain names. Once holding a domain name, you are able to set prices for anybody who wishes to purchase virtual real estate under that domain, while with original application Lindenthal affirms it could reach $2 million before you are able to have the needed infrastructure.
Dr Thies Lindenthal affirmed that:
“By 2013, as much as $350m had already been put down in application fees alone, and further billions must have been invested. Clearly, corporations and entrepreneurs have trust in the new domains being able to serve a previously unmet demand, and from this research it appears some of them may be right.”
Comparing the actual registrations with census data for famous family names in the US, Lindenthal discovered that the more is spread the family name, the more it decreases the number of domain names that contain it.
A serious gap between demand and actual domain registration is suggested by that one percent growth related to surnames that drives domains containing that name up to 0.74%.
A more advantageous offer in this situation is a shorter “cyber-commute”. When you grow the length of surnames with let’s say just one character you diminish the number of registrations up to 24%.
As Lindenthal said, the shorter the better:
“Shorter names are more valuable and lead to greater registrations. With new top level domains named for cities, for example, it was the concise city names – dot-london; dot-miami; dot-berlin – that went first, and now anyone who wants to buy virtual space under those domains has to buy it from the new owner.”
Nevertheless, he thinks that while the new non com domain names explosion will open large new areas on the Internet, the new TLDs will be a remarkable investment.
“The set of catchy keywords that appeal to humans is still bound by the way we process language, even if we had unlimited choice in top level domains.”