An offer on a new gTLD went from $20k – $100k, in one day

Okay, before I get into the topic of this post I thought I’d mention my lucky number since it directly relates to this in a strange way. When I first started college one of my friends mentioned that the number 23 had always been lucky for him and 323 had been even luckier. My first response was, well numbers can’t really be lucky, if you start paying attention to a number then sure, you’re likely to see it more and think it’s lucky.

Then I started finding 23 and 323 popping up more and more in my life, in strange ways. They became my lucky numbers and while I still mostly believe it’s random and that sure, I just notice things related to the number 23 or 323, I’ve still found it fascinating to see how these numbers continue to come up over time.

Thoroughly confused about what the heck this has to do with an $100,000 offer on a new gTLD? Let me explain. Yesterday, veteran domain name investor and publisher of the popular blog TheDomains, Michael Berkens, shared a tweet about a six-figure offer he received on one of the new gTLD domain names that he owns:

110k-offer-new-gtld

This tweet caught my eye since I haven’t been very bullish on new gTLDs so it’s always interesting to see someone like Michael tweeting about what sounds like a very solid offer (although not high enough to buy the name) on one of the new gTLD domain names that he owns. Also, and no there’s no way for me to game this or make it up…the tweet happened to take place on Feb 23rd, at 3:23PM.

Okay, that’s probably completely random, but it was too interesting not to bring up given my history with the number 23 and 323. Now back to Michael’s tweet.

A $20k starting offer is always a nice thing to get – going from $20k to $100k in one day is also a massive jump. While I don’t think this means all of us should suddenly start buying up new gTLDs, I do think it’s an interesting datapoint and sign of end-user interest in non .COMs.

My guess is the domain Michael is referring to would probably cost seven figures if it was a .COM, it’s likely a very premium new gTLD, and to an end user that doesn’t have $1M+ to buy the .COM, in this case the new gTLD was a very viable alternative.

Consumer habit changes take a long time…remember cellphones first went on sale in the US in 1983 and the first laptop came out in 1981. Everyone has cellphones and laptops now but ten years after each of these was introduced…very few people had them. I mean come on – did you have a cellphone in 1993?

I digress. My point here is that new gTLDs are only a few years old. If they do take off…it’s probably going to take a decade or more to see if it happens. I can’t help but find it interesting that in the very early days of new gTLDs, there are people out there making $20,000 offers and increasing them by 5x to $100,000 in a day – someone clearly sees real value there.

Of course, this is just one datapoint and ten years from now every new gTLD could have failed and anyone who invested in them could be out of luck. Only time will tell but I appreciate Michael sharing this, and of course now I’m dying to know what the domain name was. Oh and yes it’s still is a bit eerie to me that this was posted at 3:23PM on February 23rd…

What do you think? Is this an example of the future promise new gTLDs will see in the future, or just a random blip in the radar? I don’t currently invest in new gTLDs and this isn’t enough to convince me to change my buying habits, but it does get my gears turning.

What do you think? Comment and let your voice be heard!

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{ 14 comments… add one }

  • New.Life February 24, 2018, 9:26 pm

    Yes, New gTLDs have a bright future! …but, not all of them.

    Reply
  • New.Life February 24, 2018, 9:38 pm

    Domain (?) Maybe – The,Life or Digital,Media I guess.

    Reply
  • Brad Mugford February 24, 2018, 11:23 pm

    “New extensions” are no longer new at this point.

    When offers and sales like this are no longer a big deal, then it will be a big deal. When information like this gets reported it just shows how outside the norm it is.

    There are always going to be outlier sales. However, the total amount of aftermarket sales compared to registrations is woeful in nGTLDs.

    I wonder how many investors in new extensions can even cover their renewal fees, let alone turn a profit on their total cost.

    Brad

    Reply
  • Brad Mugford February 24, 2018, 11:30 pm

    Also, as far as the cellphones and laptops analogy; those both brought new technology. They became widely used when the technology started to become more affordable.

    Consumers will embrace new technology when there is an obvious benefit. Otherwise, it is extremely hard to change behavior.

    New extensions moved the dot. They work exactly the same as existing domains.
    That is hardly some groundbreaking innovation in technology.

    Brad

    Reply
  • Jose February 25, 2018, 2:08 am

    As you very well know your friend Morgan, I registered domain names three years ago after a live auction at First Namescon.com where wine.club get in just three months to register more or less than $ 140K.

    I register one that is http://ayer.club luck is mine it is two days ago to receive an offer of 10000 USD to give thanks, the same person to offer after 20000 USD I give thanks not to offer more money if this person offers 10,000 to 20000 USD is what I could pay, I think ts value of figures is higher if the valuation made give me results to 150000 USD.

    Reply
  • AEON.INVESTMENTS February 25, 2018, 2:46 am

    I like the new Gs.

    I think you’re right about the consumer behaviour, though. As an investment, I’m not bullish generally. The namespace is so large.

    There’s probably some that are worth it. Home.Loans probably wasn’t the worst buy. The dude will probably get the price he paid back on search traffic.

    Overall, I think for people who build sites the new namespace is great. For the average domain investor, not so grand.

    Reply
  • I know February 25, 2018, 4:21 am

    I know the name.. cuz I fwd the buyer to Michael’s domain…

    Reply
  • Rob Monster - Epik and DigitalTown February 25, 2018, 5:10 am

    Nice one. Mike Berkens have some very nice brandable domain hacks. He did not buy broadly, but he took some very nice sniper shots and picked up some brandable names that make sense to hold, particularly when renewals are not premium.

    In general, the dot-com-forever folks really struggle with this paradigm shift. It may be that their economic model is so dependent on the status quo that they miss what is going on. As I addressed at NamesCo, the true threat to domains is not new TLDs, it is entirely new systems, e.g. Blockchain replacing DNS, and new modes of access, e.g. mobile apps.

    In the meantime, what I love about the new TLDs is the brandability for combining offline and and online to drive people to a site to find out more and engage, e.g. app download. More here on that topic in case you missed it:

    https://onlinedomain.com/2018/02/21/domain-name-news/digitaltown-owns-100000-new-gtld-domains/

    As for selling a premium gTLD domain, I would say that there is a not small chance that a domain buyer who (1) thinks out of the box, and (2) has a lot of money for a domain, may have done well in crypto investments. In this case, price the domain in crypto, e.g. 20 BTC instead of asking for $100K cash. For many BTC investors, their BTC gains are “found money”.

    And if anyone needs an escrow agent for a crypto transaction, Epik will do it with an escrow rate not to exceed 2.5%, i.e. a large transaction could be an even lower commission.

    Reply
    • JZ February 27, 2018, 5:42 am

      3 big reasons why a lot of domainers don’t like new gtlds

      -its a long haul with minimal sales before they become “mainstream”
      -the registries keep the best names or charge a lot for them (they are the first line domainers when it comes to new gtlds)
      -the fact that strings are privately owned can result in drastic price increases/change in ownership/who knows

      Reply
      • Rob Monster - Epik and DigitalTown February 27, 2018, 2:22 pm

        @ JZ –

        “The best way to predict the future is to to create it.” – Abe Lincoln.

        I would say choose wisely when it comes with partnering with registries. If you have a vision for how to make their registry more successful, they will work with you on price and terms assuming you are bringing scale.

        Most domainers are still thinking in terms of individual names, and not in terms of platforms and ecosystems. For example, I have the very nice domain name called Time.Zone. Someone should but it, but who knows when. That is classic domaining.

        On the other hand, with a TLD like .WORK, I saw an opportunity to buy the .WORK domains for 6,500 of the largest cities of the world and build a solution that will make it easier for people to find a great job and for local employers to hire locals.

        For most domainers through, it is true, new gTLDs are a challenge since there is little parking revenue, and little inbound inquiries. So, if you do buy a lot of them, either (1) do it with an operating strategy, (2) flip them quickly, or (3) be prepared to wait a while!

        Reply
  • JZ February 25, 2018, 8:18 am

    Michael doesn’t need the money and will never need it so what he does with domains is different than 99.99999% of others.

    Reply
  • Jose February 25, 2018, 1:00 pm

    @JZ your affirmation of 99.99999% I like is the truth.

    Reply
  • AEON.INVESTMENTS February 25, 2018, 4:24 pm

    Dude, where’s my comment?

    Reply
  • Richard February 26, 2018, 1:12 pm

    It can’t be too hard when you’re in cahoots with the registries. Props to him for being able to play the middle man for over priced premiums dead on arrival.

    Reply

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