How Donuts Became The World’s Largest Registry Overnight

FastCo Labs came out with an article yesterday about Donuts and how they became the world’s largest registry overnight. I think the author forgot about Verisign who has many more domains under its wing than Donuts.

In the article Daniel Schindler one of the co-founders discussed things like specificity and how they thought long and hard about an extension that was 11 characters long. 40,000 plus registrations seems to be proof that specificity matters.

From the article:

What’s In A Name?

“You don’t want to be in dot-com because it doesn’t mean anything.” Daniel Schindler, cofounder of Donuts. “If dot-com was released now with all these other TLDs it wouldn’t have any success at all. It only had its success because it had a near monopoly for 25 years,” says Schindler. This isn’t the world we live in, though. The web consists of about a trillion pages and only around 1.6 million new gTLDs. The most visited sites everyone knows and loves all end in dot-com.

If Schindler sounds convinced, it’s because he’s put a lot of capital behind this hypothesis. At $185,000 each, applying for domain names isn’t exactly a cheap investment. Donuts applied for 307 domains, which is how they got to that $58 million figure.

So, how do you pick winners in the domain game? Schindler was reluctant to share Donuts’ methods, but told me there are 20-25 parameters that determine which domains will be successful. In the past, new gTLDs like dot-co or dot-us have performed with mixed results. Donuts points to .guru, which they suspected would be popular; in fact it has turned out to be a runaway success with 64,000 .guru domains registered in just a few months.

Domain names categorizing a specific field are strongest contenders, Schindler says. He points to .photography as an example. “We debated long and hard whether a world that was used to seeing two and three-letter TLDs would actually welcome a TLD that had whatever photography’s got,” a comparatively long 11 letters. “Forty-thousand people have signed up for [that] one because of its specificity.”

Read the full article here

Raymond Hackney

Founder at TLD Investors
Raymond Hackney is a writer and domain investor/consultant from Philadelphia. Raymond is the founder of TLDInvestors.com and 3Character.com.

{ 1 comment… add one }

  • albert July 25, 2014, 8:29 am

    I have to believe that donuts must be in desperation mode.
    As Rick said:
    The lights are on, the bodies are there, and the meter is clicking.
    However, I do not believe the cash register is ringing fast enough.

    Let’s face it, many people buying these new extensions are speculators. (Just go to http://www.Flippa.com)

    Until businesses are starting to be built on them and until search engines like Google, Bing, and Yahoo start to take them seriously, its almost a joke.

    .Club seems like the only one that has its act together they probably will do good.

    Also, where is all the hype on .Xyz?

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