Almost 60% of new gTLDs are parked – is that a good thing or a bad thing?

I find myself somewhat frequently checking nTLDStats.com to follow what’s going on in the world of new gTLDs. One of the recent trends I’ve been keeping an eye on is .TOP overtaking .XYZ as the “most registered” new gTLD and .LOAN is getting closer and closer to overtaking .XYZ to move into the #2 spot.

One of the stats that I haven’t actually looked at in a while is the percentage of new gTLDs that are parked. Well today I looked and the number is 58.89%, and since it’s pretty safe to say that a parked domain name is owned by a Domainer…it’s fair to say that close to 60% of new gTLDs are owned by investors.

My initial thought it…uh that’s not good news, it means that at most, only 40% of registered new gTLDs could be businesses actively branding on them. However let’s be honest, there’s now way that all of the non-parked domains are developed. So how many new gTLDs are actually developed? I think it’s safe to say that a quarter of the names registered by end-users are actually developed and used as a primary domain for their business. Still that number could even be high.

For the sake of argument, let’s say my guess is right and a quarter of the non-parked new gTLDs are being used as a primary domain for a business. That would mean that only 10% of the new gTLDs out there are actively developed and being used as the primary brand for a business.

So I like to play devils advocate with myself, so I thought…well how could this be seen as a good thing? Well with a majority of the registered new gTLDs owned by Domainers that could mean that investors might be able to set the bar for what the new domains are worth. I think we all know that bar is going to be much lower than .COM pricing, and since Domainers actively list names for sale it could get consumers more comfortable with the idea of branding around a new gTLD.

Still, even playing devils advocate I’m disappointed in this number. Now if we really wanted to go deep we’d have to pull .TOP, .XYZ, and .LOAN out of the mix since those all have huge registration numbers that likely do not correspond to demand or typical user behavior. I don’t have time to do the math now, but if you do I’d be interested to know what you come up with.

Okay – but now back to the question I posed in the headline of this post. Close to 60% of the new gTLDs are parked, is that a good or a bad thing? I want to hear from you, comment and let your voice be heard!

{ 6 comments… add one }

  • Brad Mugford October 28, 2017, 7:43 pm

    The actual % of new gTLD in use is very low. How many have people actually seen in the wild?

    On top of domains that are registered and not in use, the vast majority of all premium combos are registry reserved with ridiculous registration and/or renewal prices.

    The registries greed with their tiered pricing, absurd renewal costs, clawbacks, forced free registrations, and other shenanigans are as much to blame as anything. Then again so is dumping thousands of new extensions on the market with limited actual demand.

    For every website that is launched on a new extension there are many times more launched on .COM. That lead is only growing daily.

    It has been several years and there is hardly any traction. Most registries are losing registrations. The window for these to make an impact is closing.

    Brad

    Reply
  • Michael October 29, 2017, 12:09 am

    Here are some xyz websites for you to check out that I just found!
    https://pinout.xyz/
    https://www.iris.xyz/
    https://www.tatsumaki.xyz/
    http://troubleshooter.xyz/

    And anyway what is a valuable website ? Their is 1.2 billion websites on the internet and if you go down the top list starting with Google when you get to about number 500,000 that site only gets about 500 visits a month! That is not a very successful website and now there our 1,150,000,000 websites under that, that get even less then 500 visits a month, an of those 500,000 website 368608 are .com, 55294 are .org , 24613 are .net and the rest are everything else. So I would say their is about 1 billion websites on the internet that don’t make any money and cost renewal fees and hosting for the people that own them.

    Reply
  • John McCormac October 29, 2017, 12:14 am

    The problem with “parking” is that it is like that old military expression that amateurs discuss tactics but professionals study logistics. In this case, amateurs talk parking while professionals study usage. It is usage that is a major factor in whether a domain name will be renewed. Domain names with developed websites tend to drop at a lower rate than undeveloped domain names. The NTLDstats figures are not reliable and with some gTLDs, usage is far lower. One gTLD has a usage percentage below 1%. Others are relatively healthy and are developing along non-core gTLD tracks. This means that they can have a usage percentage around 11% or more. There are also gTLDs that are filled with the kind of websites and landing pages that are facilitated by highly discounted registration fees. While these gTLDs might appear to have activity, they are close to being Potemkin Villages in terms of real, gTLD-wide, development. They actually have some development and usage but it tends to be swamped by content that is arguably webspam.

    It is not safe to say that a parked domain name is owned by a domainer. Most domain names that are parked on PPC are domain names that are undeveloped and the registrar is either using their own PPC landing page operation or using the registrar PPC parking services provided by Sedo or Parkingcrew. The same kind of landing page services are used in the legacy gTLDs. A brand owner, and these are not just trademark owners, might protect their businesses by registering their domain names in various relevant new gTLDs. Some of these domain names will redirect to the brand owner’s primary website in another gTLD or may be a holding page, not set up in DNS or will be automatically put on PPC due to being undeveloped.

    Any gTLD relying upon heavy discounting to drive registration volume tends to have lower than average usage. The new gTLDs that have higher than .COM registration fees tend to do better in terms of usage and renewal. The battle for a lot of new gTLDs at the moment is in stabilising and improving renewal rates. Some of the gTLDs relying on heavy discounting have one year renewal rates below 10%.

    Reply
    • gpmgroup October 29, 2017, 4:11 am

      Thanks John, very interesting post

      Reply
  • Leonard Britt October 29, 2017, 6:35 am

    You might also want to look at Namestat.org which seems to have more updated reg stats. It seems the nTLDstats site still lists names which have not been renewed but have not yet fallen through the complete drop cycle. The company I work for has quite a few nTLDs but they appear to be merely trademark protection names and the ones I have checked do not even resolve. I have seen some local small businesses with nTLD domains but they are pretty obvious reg fee . I guess most end users are essentially newbies when it comes to choosing domain names.

    Reply
  • Ategy.com October 29, 2017, 7:05 am

    I’m not sure if the numbers as a % means anything at all. The main thing needed for the ngTLD’s to thrive awareness .. which in turn requires a critical mass in terms of awareness by the general population (non-domainers). What is needed for that is a specific (but unknown) hard number of developed websites multiplied by their user-base. Call it unique-end-visitors. Towards that number you can have a single developed website that has more weight than 1000 others combined.

    I think another question to ask .. is what is the % of .com’s that are parked/undeveloped? I’m thinking that’s going to be high as well.

    Reply

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