Could the future of .CX domains be brighter than I first thought?

Idea

Okay, so I’ve been a naysayer when it comes to .CX – I just haven’t been able to wrap my head around why these would be valuable. Of course, whenever something is top-of-mind you end up seeing it more and more…so articles and tweets about .CX feel more in my face now than ever before.

Earlier today @Dosebuy shared a thread on NamePros which was a pretty darn interesting read IMO.

In the thread on NamePros, a user named iodex breaks down why trends form in the first place:

1. There is an irrational expectation on future demand. This is where fools convince themselves that their assets mean something in the real world. One day they wake up and find that those assets were actually useless junk, i.e. no end user utility.

2. There is genuine end-user business case and demand which is primarily driven by a need to protect the P&L (i.e. risk mitigation) or; there is utility (i.e. a benefit or tangible yield). These assets have genuine value in the real world.

3. There is emerging liquidity in this asset class. This is the point where the MBA graduates are talking about the assets in the coffee shops over their organic almond milk lattes and an excuse for real beards.

(Source – NamePros)

Using this as a framework iodex goes on to talk about the fact that you can’t really equate a low number of registrations/demand now as an indicator that .CX is less functional than another TLD like .XYZ. In fact, it could be more functional but just not even close to maturity yet as the trend itself is still forming.

The argument against CX domains suggest that it serves a less functional purpose because of its current low demand. This argument is not only a text book definition for cognitive dissonance, but a misunderstanding of how business trends emerge. Whether dot.cx domains are leading the tables, or not; is a separate and irrelevant point to whether the CX domain is of functional use.

(Source – NamePros)

Okay, now for my take. First, as you can tell from what I’ve written so far, I think iodex did a pretty solid job making his case here in a well-written thread. That being said, I do think it’s still too early (for me at least) to look at .CX as a viable investment opportunity.

While I do think there will be some outlier sales here and there I agree with iodex when it comes to understanding how trends form. I think .CX would need to see much stronger adoption numbers and standardized use cases to end up being truly valuable to end user buyers.

Still, all this talk about .CX has made me want to buy one or two names, price them at $10k or higher and just sit for ten years and see what happens. If I do that though, I’ll be honest with myself and know that with those names I’m not investing, I’m gambling…

{ 18 comments… add one }

  • John McCormac December 9, 2019, 6:07 pm

    Gresham’s Law in action? Premium domain names in legacy gTLDs get taken out of circulation quickly.

    Reply
  • Snoopy December 9, 2019, 6:52 pm

    Just another shi**y extension. Whether this ever “takes off” of not will be totally random, 99% likely it will not take off.

    Dosebuy’s names got about the right money, they are close to the cream of the crop and would get near that price in just about any extension. He snagged the names, got them in the auction and then got you to help promote them. Probably many hours of work in total and likely countless other reg fees he has wasted.

    I hope we don’t now get some .cx stupidity because of these blog posts. It is another thing entirely for startups to adopt these.

    Reply
  • BullS December 9, 2019, 7:06 pm

    First you talk about io,co, dot this and that…and now this piece of sh***it

    Dot com is KING!!

    Reply
  • Brenden December 9, 2019, 7:41 pm

    .CO makes sense
    .cx is worthless
    Rick Schwartz would never get behind . cx

    Reply
    • Matt December 10, 2019, 10:22 am

      Rick Schwartz did get behind .mobi with flowers.mobi – I’m not sure why.

      Reply
      • John December 16, 2019, 7:46 am

        He only took a gamble he could well afford to take. Saying he “got behind” it doesn’t fly.

        Reply
  • Bossu December 9, 2019, 9:05 pm

    Regardless of cctld the top 100 keywords have value. Some cctlds more valuable than others but still a less riskier investment than a new gtld.
    imo

    Reply
  • Bossy December 9, 2019, 9:05 pm

    Regardless of cctld the top 100 keywords have value. Some cctlds more valuable than others but still a less riskier investment than a new gtld.
    imo

    Reply
  • John December 9, 2019, 9:58 pm

    Speaking as an end user first who is more of a buyer as an end user than a seller, and one who almost never visits Morgan’s blog anymore, I absolutely haaaaaaaaaaaaaaaate this domain. I might take the best ones if offered for free, but even that would be an inconvenience. I also hate it as a “domainer.”

    Reply
  • Matt Handshaking Holmes December 10, 2019, 3:24 am

    I can’t imagine one successful entrepreneur that I’ve interviewed who has heard .cx

    Reply
  • bul December 10, 2019, 5:14 am

    If .cc didn’t take off, I wonder what would make .cx any better.

    Reply
  • George In Miami December 10, 2019, 7:14 am

    I think the letter S is missing in CX.
    You probably meant CSX as the railroad company. Don’t you? Because that’s the only thing I ever hear about CX. Sorry.

    Reply
  • Iodex December 10, 2019, 10:46 am

    It’s a shame that we couldn’t get a single intelligent well structured retort to the CX business case. When a user has to quote “Rick Schwartz” as their decision set-point, then in the same paragraph offer their own opinion; its becomes evident that the market place is saturated with amateurs rather than individuals who understand the true merits of capturing market inefficiencies; where any asset class has discounted valid information. Whether we are investing in stocks or domains, the wider market ignorance (and arrogance) is a key asset to the true investor who understands his/her product – in this case the CX domains which may never be a king, but certainly a queen in due course.

    When an “end user” has to emphasise their point through words like “haaaaaaate,” it offers nothing but validity to the CX investment case; simply because such individuals lack the ability to structure a credible response – why? because there is no response. They will only be clutching at straws to desperately negate the trend set by SAP, or of course, they simply lack the intellectual wit. Better to keep quiet in that instance because, regardless of how many likes you have; it is only worthy of a cringe.

    Hey Morgan – I agree with your comment that there needs to be stronger adoption. I also like your consideration of investment Vs gambling. I respect that you have reached the conclusion through genuine consideration. We probably both agree that you and I could look at the same stock where one of us will be gambling and one will be investing (and vice versa). Therefore, gambling is not only a game of chance which generates zero social benefit, but it is a mind-set where information is either unknown or not understood. In the case of the CX domains, I would never have invested had I not spoken to global technology leads and end users. Therefore, for me; the merit in the CX domain has already been proven as far as I am concerned because I get out there and speak to leaders and make my decision; as I do with stock or any investment. The fact that these very CX domains that Rick Schwartz doesn’t approve, will form hot topic in panel conversation (incidentally where Rick will not be speaking, nor is he invited) at the Gartner CX conference held globally in 2020. The “CX service portals” will be discussed as a mechanism that will unify the product with Customer Experience (as we see with SAP – who will be invited too :)) For me, it is no gamble. Thanks for your effort and, whatever the outcome, I hope the best for everyone.

    All the best…
    Riz

    Reply
    • Snoopy December 10, 2019, 3:41 pm

      Let me guess…you’ve never sold a domain in your life?

      Reply
      • Dose December 11, 2019, 10:24 am

        Snoopy. It’s not like you are famous for reporting sales. Actually you only mouth and legs hating on newbies and sucking up to the experienced. It’s getting tiresome.

        Reply
    • John December 12, 2019, 11:17 pm

      I’m an end user before I’m a “domainer.” I’m a real both/and kind of guy. I have an end user’s perspective. I just said I hate .cx above. Very, very much. I rest my retort to the CX business case.

      Reply
  • Jj December 11, 2019, 10:31 am

    Snoopy every time I see your name it remind me of snoop DOG. Is that all what you do Criticise hard working people at least they are trying to work hard and graft.
    Snoop you need to chilex as you just becoming a hater winger. If you have nothing positive to say keep your mouth shut.

    I never Heard you say or do anything positive

    Reply
  • Iodex December 11, 2019, 1:12 pm

    Hey Snoop

    Yes that’s correct. Zero domains sold. I am but a humble newbie domainer. However, whilst domain experts like you were selling all your domains, I was busy selling Airbnb stock on the private markets at $1bn before they were valued at $30bn, that’s just one example of many.

    So, the difference between you and I, notwithstanding your inability to articulate a credible response; is the simple fact that you are a domainer, where I am an investor. You make a quick buck here and there, whilst I scale in positions on alternative asset classes. Your bench mark is Rick, my bench mark is the CTO of SAP OR GTO at Microsoft. See my point? Do you now understand your size in the real world? I don’t need to sell domains young man; I am not in this for domains. The CX domain popularity, serves me a purpose far beyond your comprehension.

    When you wake up, and you and your buddies are sipping your grande Starbucks lattes with organic almond milk, scratching your new beards wondering how best to enter the CX domain market, I’ll be sitting in some cafe, brown shoes, necking my double espresso before selling you my left overs.

    If you can take one bit of advice, from a professional investor to a bitter domainer; always buy wholesale (low news) and sell retail (big news).

    You’re welcome,

    Riz

    Reply
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