dice representing new domain namesAlthough the new global top level domain names (gTLDs) currently being implemented by ICANN are supposed to make it easier for businesses and individuals to secure meaningful website addresses, they have also raised several issues that need to be addressed.

1) Will gTLDs succeed or fail?

This is the multi-million dollar question that may take months or years to answer. Many of the new gTLDs are in direct competition to each other, potentially creating confusion for web users and website owners. gTLDS like .investment, .money and .finance are all closely related, but which is the correct one to buy?

2) How will gTLDs affect domain pricing?

The cost of setting up a new gTLD is relatively expensive ($185,000 USD), a cost that needs to be passed on to the people and businesses registering new domain names. New gTLD addresses range in price from $40 to $1200 making them much more expensive than most current domain names. Unsurprisingly cheaper gTLD addresses are selling much better than their more expensive competitors.

3) Will gTLDs help satisfy demand?

gTLDs are supposed to make it easier for businesses to get the domain name they want as existing “stocks” run out. Some experts are concerned that the gTLDs will actually increase demand for .com addresses, driving purchase prices higher still. As a result, gTLDS are not expected to attract the same interest (or value) as their .com competitors.

The new domain names still remain in their infancy, so it may be some time before these questions are answered definitively.

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