Boom! .XYZ Launches – Could It Be The Next .COM?

What a day. .XYZ launched today and the buzz is going strong. Daniel Negari, .XYZ’s founder wrote one of the best blog posts I’ve read by a domain industry veteran to-date.

dotXYZ

Before I dive-into .XYZ, I want to talk about the domain industry perception of these new TLDs. To do this I’d like to go back in time and look at the .CO launch. When .CO launched I remember so many people saying, “It will never take-off”, “They’ll lose too much traffic to .COM” or “Nobody is going to use it!”

.CO hit the 1M registration mark at the end of year one, a feat that took .COM fifteen years to hit. Here’s the thing, the reason for .CO’s success isn’t because the two letters “C” and “O” together just seem inherently valuable to people. Instead it all came down to the team behind the TLD that made it all possible.

What I think .CO proved to the world is that you can take a new gTLD that nobody has ever heard of, and with a great team and great marketing you can sell 1M domains in a year. I don’t think many new gTLDs will hit this mark because I don’t think they have the team to do it.

Enter .XYZ, a company with a team that I see having the same magically synergy that allowed .CO to hit the million registration mark, and that’s exactly what Daniels goal is, and to do this he’s going big.

Daniel Negari

Four years ago, I had a dream of creating the .xyz domain extension. Although the letters “XYZ” have little-to-no meaning, everyone in the world has used and seen “XYZ” at some point in their lives. So what is .xyz? .xyz is whatever you want it to be. It’s a totally customizable domain extension for Every Website, Everywhere.™ It’s the platform for people all over the world to develop a memorable and meaningful online presence, regardless of their industry or interests. (Daniel Negari, founder .XYZ)

Domain industry veterans like Andrew Rosner have already publicly announced their investment in .XYZ:

andrew-rosner-bio-image

I personally like the pure generic nature of .XYZ and the fact that it comes with no pretense and no expectation. I personally don’t see it having high commercial value, meaning it won’t likely be adopted by IBM or General Motors, but I do believe that it will be popular with the young generation and will be very fitting for anything which is social, pop-culture, trendy, edgy & culture related – particularly among the 15 years – 30 years old demographic.

We have not been investing much, if anything, into new gTLDs but we did make an investment into .XYZ names and I’m confident it will pay off. (Andrew Rosner, founder Media Options)

Like most things in life, the proof is in the numbers so for anyone who says it can’t be done, just remember, it can be done, and has been done within the last five years. Do I think most people could pull it off? Absolutely not. However I’ll tell you this, Daniel, Mike and Shayan are not normal people, these are the best-of-the-best, and that is what it takes to make something this big happen!

{ 27 comments… add one }

  • Joe June 2, 2014, 6:23 pm

    Well is here expected new extension of Daniel think if I have the luck that you are having. Club, best I can go have some to invest in xyz I approve luck to see if I have it.
    Godaddy is that this is well in the price to buy and register to see if others are also cheaper or equal to Godaddy good must see first to give in return.

    Reply
  • Alan Dodd June 2, 2014, 6:34 pm

    It’s great the way they are so focused on this extension.

    I’m keeping an open mind on it, but I definitely love the “x” and the “z” as they stick in the memory.

    There must be some research on this!

    I think .com also doesn’t really mean anything and that’s great. For the moment, one words only, got drinks.xyz tonight and I like it just thinking about it.

    Good luck to them!

    Reply
  • Leonard Britt June 2, 2014, 6:43 pm

    I have regged more .COM domains this year than all my prior years in domaining combined. And yet I have not registered even one new TLD at least yet.

    Reply
  • Michael June 2, 2014, 7:13 pm

    First impression I don’t really like this extension, I think it has too many syllables and a good extension should just roll off your tongue haha

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  • Steve June 2, 2014, 7:31 pm

    Over 60% did bleed to .com with o.co. Facts are facts.
    If I regged any whatever.xyz I would for sure register whateverxyz.com to cover my bets or someone could walk away with the traffic.
    imo.

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  • Ron June 2, 2014, 7:50 pm

    The only people who like this extension, are the people who THINK they got good keywords. Just because you got an unattainable keyword, doesn’t make it worth anything in an extension that means zilch. If your target market is 15 year olds guess what, $5 offers all day long, enjoy the hype of the biggest thing since .com

    I will expect a large amount of unknown registrations made to look the ext look hotter than it is. Keep manipulation stupid domainers who think just because they got a one word .xyz they will be instant millionaires,,, 2000 more nothing’s coming

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  • Rich June 2, 2014, 9:11 pm

    “Here’s the thing, the reason for .CO’s success isn’t because the two letters “C” and “O” together just seem inherently valuable to people. ”

    That is precisely why “.co” made it because .co means something.
    We did not know what the team was capable of,who was behind the extension until much later, after year 1 or even later.

    .xyz means nothing that’s why i pass.

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  • todd June 2, 2014, 9:12 pm

    “.CO hit the 1M registration mark at the end of year one, a feat that took .COM fifteen years to hit. Here’s the thing, the reason for .CO’s success isn’t because the two letters “C” and “O” together just seem inherently valuable to people. Instead it all came down to the team behind the TLD that made it all possible. ”

    Another ridiculous statement. It took .com 15 years to hit the same amount because the internet wasn’t developed yet. The only reason .CO was able to hit 1 million is because they had zero competition.

    If .CO launched right now with the competition of all the other gTLDs how do you think their numbers would be?

    When everyone wakes in the morning and sees the general availability numbers after day one we will see just how good or bad XYZ really is.

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  • page howe June 2, 2014, 10:01 pm

    fairly priced, nice names available, heck you can still go all in with a 2-10 if the price is right.

    at least there seems to be a hint they will try to market.

    im in, and so will quite a few others i think after they report 12-15k on day one

    come on in, the waters fine.

    page howe

    Reply
    • Morgan June 3, 2014, 4:54 am

      Well said @page and great dialog everyone, keep the comments coming!

      Reply
  • Flor June 2, 2014, 11:25 pm

    @RON
    “I will expect a large amount of unknown registrations made to look the ext look hotter than it is.”

    I think so as well. And some domainers will of course fall for it and start buying into this 3 syllable extension which basically means nothing more than “examine your zipper”.

    I do see a market for this extension: Kids. If domain investors want to invest in an extension where the actual end-users have a maximum budget of $10-20 (their weekly allowance) then that’s their prerogative. I seriously can’t imagine any serious company wanting to be associated with an .xyz domain. If a company already has a .com they obviously won’t get an .xyz (not even as a defensive registration) and if they don’t have a .com (or a crappy com) there’s so many better alternatives to .xyz already (and hundreds more coming in the near future).

    @ Linton
    As many people mentioned on many blog posts, .CO had basically no competition to deal with to reach their 1 million registrations. If .co would come out now, with hundreds of new gtlds, the numbers would most likely have been significantly lower regardless of their marketing efforts.
    .XYZ on the other hand will already compete with 289 new gtlds (source: http://ntldstats.com/tld). My guess? The .xyz team will have around 25K registrations by the end of the year and probably a grand total of 4K-5K after the first day of GA.

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  • sukhjin June 3, 2014, 1:15 am

    cut the nonsense. This is the ONLY WORSE THAN WORST gtld on the market, WORSE!
    I reg gtlds, and this is insanity. All these people vouching, are nothing more than friendly favors to daniel, or paid!

    This is bound to fail

    Reply
  • Ron June 3, 2014, 2:18 am

    @page

    Just because you bought in, doesn’t make it an investment, Bernie Madoff used to use the exact same line, any relation… Shameless plug really??

    Reply
  • Snoopy June 3, 2014, 2:32 am

    “CO hit the 1M registration mark at the end of year one, a feat that took .COM fifteen years to hit.”

    //////////

    .com registered one domain on the first day so you could argue any extension is growing faster initially. New extensions live or die quickly, it isn’t like 1985. Personally I think .xyz has no chance of getting 1 million registrations in a year, that is just a sales pitch for domainers.

    It is a mixture of a very poor term + strong marketing. I think it will be an above average performer simply due to the marketing effort going into it. Personally think it could get 100k reges in a year.

    Reply
  • Raymond June 3, 2014, 5:34 am

    I would rather spend money on .web than .xyz
    .xyz sounds bad and has no meaning…..It’s like .abc .123 etc
    .xyz will never break 1 million as predicted, period.
    .xyz is for innocent victims of end users……

    Reply
  • todd June 3, 2014, 5:55 am

    @page

    So 9,000 of the new XYZ names were registered at Network Solutions. The Domains has a great post about these numbers.

    The behemoth Godaddy only had 20% of XYZ names registered with them on day one. How does Network Solutions who nobody uses register 50% of the XYZ names on day one? Network Solutions best day ever was getting 8% of the .Guru names but jumps up to 50% of the XYZ names.

    Who registered those 9,000 names? Did XYZ register them to pad the numbers and make them look better then they really are?

    If this happened would you still stay to come on in the water’s fine?

    Reply
  • Flor June 3, 2014, 6:10 am

    @ Todd

    I agree…More than half of .XYZ domains are registered at Network Solutions, this particular registrar has on average less than 100 total registrations per new gTLD and now they suddenly have 9,000 additional registrations on .xyz . Sounds fishy to me.

    Also, the best performing new gTLD on Network Solutions before .XYZ was .guru. Network Solutions basically has 516 .guru registrations spread over a period of 4 months. And now an additional 9,000 .xyz registrations spread over 1 day… lol

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  • Flor June 3, 2014, 6:28 am

    Actually small correction: Network solutions their best performing domain, .guru, currently has 1,793 registrations spread over a period of 4 months (http://ntldstats.com/tld/guru) , compared to the 9,022 registrations of .xyz, spread over a period of a single day.
    That’s still a huge difference: 500%+ more registrations of .xyz in a single day (compared to .guru in a period of 4 months).

    Reply
  • William June 3, 2014, 6:29 am

    17,800 is a little disappointing considering that .club hit 25k the first day. Subtract the 1k names made by the registry and it’s more than 30% less. Given that .club has a narrower application, it really makes the xyz launch seem weak.

    I have about 20 good keyword xyz’s and I’m hoping for the best but I have to say when I see the CEO bouncing between personal spats with industry professionals to making outrageous predictions on the blogs, I am concerned. Burning bridges and transparent hype is not a solid business plan.

    I hope I’m wrong.

    Reply
    • Morgan June 3, 2014, 6:09 pm

      @William – the number is closer to 30,000 and Daniel hasn’t had personal spats with industry professionals, in fact people like Andrew Rosner, Page Howe and many more have come out to support him. Exciting times!

      Reply
  • Jim Holleran June 3, 2014, 11:44 am

    So 9,000 of the new XYZ names were registered at Network Solutions, all under privacy! I been in this business since 1997 for fall for this BS!!! Prove me wrong, but I smell a big RAT here!

    Reply
  • Jim Holleran June 3, 2014, 11:49 am

    So 9,000 of the new XYZ names were registered at Network Solutions, all under privacy! I been in this business since 1997 for fall for this BS!!! Prove me wrong, but I smell a big RAT here!

    Reply
  • Flor June 4, 2014, 12:13 am

    Reply
  • William June 4, 2014, 4:47 am

    @Morgan

    The Numbers – ntldstats.com has the total registrations at 38,160. Let’s count all of them as first day registrations even though some of them were not in the first 24 hours. Now, we need to subtract the 1000 or so registrations made by the company themselves. So lets call it 37,000. Next we need to subtract the free registrations that were given away to Network Solutions customers who would have had to opt out not to receive the domain. There were 27,686 registrations total by Network Solutions. Dot guru has about 1800 network solutions regs with almost twice the total number of registrations. Let’s be generous and say there were 1800 real purchases from network solutions customers. So we subtract 1800 from 27,686 and arrive at 25,886 non user initiated, non paid registrations (trying to avoid the word “fake”). So 37,000 user registrations minus 25,886 freebies = 11,114 paid, user initiated registrations.

    The math shows that xyz had less than half the paid user registrations of .club in its first day. The extension is not #4, it’s real position is somewhere between #18 and #24. Today Daniel posted on his blog that they recovered their initial $185,000 application fee from the first days regs. This seems to be false even if .xyz paid the reg fee themselves (unlikely) to give away the 25,000 domains. Moving money from one pocket to the other does not equal a profit.

    Beyond the insulting inflation of numbers, giving away .xyz domains hurts the extension because .com owners are not likely to relaunch their sites on a new extension. So the development potential of 25,000 names that could have been turned into real websites has now been diminished to the possibility that the owner will redirect their free .xyz domains to their .com address. Who knew that when Daniel said .xyz was his gift to the world that he really meant he was giving the things away for free!

    This is why I am concerned about the management of .xyz.

    1 – Daniel lacks diplomacy. On TheDomains.com Rick Schwartz was trying to say that he was disappointed that Daniel didn’t attend his show and make his case for .xyz. He also expressed skepticism about some of the claims made by Daniel about the new extension. This is business, not personal. Instead of reacting in a professional manner, Daniel tells Rick “Trying to Cyber – bully me into paying you ? Check mate grandfather of domains. Move over.. their is a new king in town.” Seriously? This is about ego, not promoting a product.

    Here is the URL:
    http://www.thedomains.com/2014/05/31/shocker-rick-schwartz-now-owns-more-new-gtlds-domains-than-i-do/#comments

    2 – The fake numbers. Padding the numbers is one thing, but doing so in such a transparent fashion and then trying to pretend that you didn’t is a little like a kid caught with his hand in the cookie jar who insists he was actually getting the cookie for you. There is only one reason to pad the numbers. Daniel made grandiose statements about .xyz and it would have been embarrassing to have so few registrations on the launch. This is about ego, not promoting a product.

    3 – No one knows what the future of the gtld’s will be. I personally really like them and think there is great potential in owning them with very little downside. But statements like “The future of the internet lies in .xyz” are pretty juvenile. It’s not even good marketing because it’s nonsense. Again, this is about ego, not promoting a product.

    4 – Giving away free .xyz domains to .com owners demonstrates the companies lack of focus on what should be their first priority which is getting domains into the hands of people who will build popular websites on the extension. Long term vision sacrificed for short term ego bump.

    I really hope I’m wrong. I think .xyz is a great extension and I enjoy the energy Daniel has when he promotes it. He seems like a great guy to have a beer with but I don’t see a well thought out business strategy unfolding here. Again, I own about 20 of these with great keywords and I would love to be wrong. Seeing Andrew Rosner and Page Howe offer their support gives me some hope. 🙂

    Reply
  • Flor June 4, 2014, 5:32 am

    @William

    Splendid post!

    I agree with all what you said. I do think that 1,800 paid registrations on Network Solutions was a bit too generous. The reason is simple:
    .Guru, which is the best performing gTLD for Network Solutions, only had 1,800 paid netsol registrations after 4 full months so I highly doubt .xyz after only 24 hours will have the same amount of paid registrations. I guess realistically this number will closer to 300 – 400 due to the much smaller time frame. Taking that into account the current total amount of real (paid) .xyz registrations would probably be under 10K (37,000 user registrations minus 27,286 freebies = 9,714 paid registrations) and the total ranking of .xyz (taking only paid registrations into account) would be #25.

    Reply
  • HowieCrosby June 4, 2014, 8:42 am

    I love .xyz

    It’s not down to the domainer’s in the end of the day, it’ll be the buying client.

    June 2nd was a good day.

    Reply
  • Drewbert June 4, 2014, 11:26 pm

    Looking at his past, Daniel appears to be a bit of a publicity whore. That’s the only thing .xyz has got going for it, media awareness. That’s not the recipe for long term success.

    Investment in .co is reliant on the politicians/bureaucrats in the country of Colombia being happy with the signatories of the registry management contract for it’s ccTLD. That’s not a recipe for long term success.

    .guru works as a gTLD. The huge number of traffic domains blocked by the poorly-researched “collision mitigation list” confirm this. THAT’S a recipe for long-term success. Likewise .club

    If you enjoy basing your domain investments solely on a guy that has a wide smile and likes getting his photo plastered over the internet, once you’ve finished buying up .xyz domains, send me an email – I have a bridge…

    Reply

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