.Ooo Registry Infinibeam Cancels New Domain Name Registrations
Infinibeam, the domain registry for .ooo gTLD, predicted that it would have 1 milion registrations in its first year. Unfortunately, despite the registry’s best efforts, these projections haven’t materialized and Infinibeam is now cancelling the registrations of single letter .ooo domain names. Some domain names were registered as early as nine months ago.
I hate to see a new business struggle but this is the challenge that many new registeries offering gTLDs will inevitably face. They will face heavy competition for eyeballs and advertising dollars from entrenched TLDs .com, .net, and .org.
The truth about domain names is that most domains are purchased by domain flippers and speculators. They are not purchased by domain name developers. As such, a new TLD needs a robust aftermarket in order to enable new buyers to sell these domain names.
A popular TLD such as .com is already considered valuable and therefore has a large aftermarket. It is easy to buy and sell a .com. However, domainers are still not sure about the value of the new TLDs and therefore do not buy them from resellers. This creates a marketplace of resellers with domain names that they cannot sell. This inevitably leads to these resellers deleting the domain names or allowing them to expire. This is the big problem that new gTLD domain registries face.
Domain name development also plays a big part in establishing the credibility and value of a new TLD. The more people and businesses develop actual websites on a TLD, the more the aftermarket determines that this TLD has value. This, in turn, helps buyers and sellers trade domain names in this TLD much easier in the aftermarket. This encourages speculators to register more domain names in this TLD from the registry.
This phenomenon can be seen in the .com, .net, and .org aftermarkets. Website developers build on these TLDs constantly. Therefore, these TLDs are considered to be valuable. As such, speculators continue to register domain names in these TLDs in order to re-sell them in the aftermarket.
I sincerely hope that Infinibeam can find a business model that works and turn its fortunes around.
Author: Kris Tabetando
Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.
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