The new generic top level domains ( GTLD ), are they the new big thing?

 The new generic top level domains GTLDs and will they bring change in the Internet?

ICANN gets closer and closer to making the next change in the internet. They announced a few years ago their desire to create more GTLD‘s and now it seems they got things rolling. Earlier this year they started the application process and up to mid-June they had almost two thousand applications for new generic top level domains.

What are the new generic top level domains or GTLD‘s?

Up until now there were 22 top level domains (TLD) and people could register just second level domains in the TLD‘s infrastructure (in example.com we could register only the example which is the second level domain). Now the ICANN has made it possible for almost everyone (with enough money and knowledge) to register its own TLD with a string he chooses (I can register .eatmyshorts). The thing is that whoever registers a new TLD is responsible for maintaining it up and operational.

What are the benefits of the new generic top level domains GTLD‘s?

The benefits for registering a new top level domain are many. First of all you instantly become a domain name registrar you can register as many as you want second level domains within you GTLD‘s infrastructure this means you can sell them to everyone who is interested at a price you choose. A quick look at the applications and I found a company that has applied for .blog TLD which means this company can sell Second level domains like myblog.blog to all bloggers and if they provide good service at reasonable price looks like they will have a blast.

The new GTLD‘s are designed to work in many languages which is also a big advantage for the regional business and brands and for governments or local administration, to make it easier for local users to navigate to the web using their native language.

If you are brand or corporation you can use GTLDs to boost customers confidence in you. A GTLD like .mybrand shows them that you are a serious brand and there is no chance of mistaking you with your competitors.  Also it provides a good mean to organize your company on the internet you can have second level domains for everything you need you can organize your products at products.mybrand or services at services.mybrand you can give even second level domains for your employees if you want.

The new GTLD‘s can be looked as an investment plan. And I am sure that many companies who are specialized in domain names registrations are looking for the next boom. A simple word registered as a GTLD‘s can provide huge profit if it becomes popular. It is a thing that really deserves a second look.

What are the disadvantages of registering a new GTLD?

First of all the application process is not easy. The approval for new GTLD can take up to a year or even more. The registrars must pass through several checks. They must prove that they are trustworthy as they will be given a piece of the Internet to maintain.

Second it requires a lot of knowledge and work to maintain the new GTLD‘s and their infrastructure.

Then comes the price to buy and maintain a new GTLD doesn’t come cheap. The application process itself costs about 180 000 USD or more as announced by ICANN. Which is sound statement if you don‘t know anything for the domain names system don’t waste your money or our time to apply.

When you are looking to buy new GTLD as an investment you should take into consideration the facts:

There are few keywords that can provide solid profit for domain registrars and there are several applicants for each of them.

The Internet was doing fine with 22 TLDs. Things might get a little crowded for the small players with almost  1500 new  GTLDs. This might drop the value of the domain names in SEO.

The bottom line is that no one knows how things will turn up with the implementation of the new GTLD for the Internet industry it will be a turning point. But for the brands and other communities this might be a great solution. 

Domain Names Explained

What is a Domain Name?

Domain Name is a string of letters identifying a device, service or resource connected to the internet. The domain name is basically letter identification of an IP address of a device, server or web site in the global network.  Domain names are regulated by the rules and procedures of the Domain name system or DNS.

Domain Names serve so that easily memorable words or letters can be transferred to an IP address in the Internet. In this case we don‘t need to remember the numbers of the address but an easy word or phrase. Also when changing the physical address of the data (changing servers) domain names help us locate the resource without knowing the new numeric address. (The new address can be assigned to the domain name). In the end of 2010 the number of domain names in use reached almost 200 million.

Domain name syntax.

The domain name has several labels (parts) separated by dots (.) . In the most right position is the top level domains or TLDs (in example.org the org is the TLD). In the beginning when the DNS was developed two major groups for Top level domains were created the first was the two letter code of each country and in addition a group of seven generic TLDs to be used by international organizations. 

The first seven generic domains were .gov[ernment], .edu[cation], .com[mercial], .mil[itary], .org[anisations], .net[work], and .int[ernational]. Due to fast growth of the Internet a necessity arise to increase the number of the top level domains. During 2009 there were 21 generic TLDs and 250 country code domains in use.

The TLD can be explained as the extension of a file as in myfile.xls you know that the file is used by Excel in example.com the domain is used by a commercial organization. The Top Level Domains also show the reliability of the person who owns them for example a TLD .edu or .gov are given to educational and governing organizations only and customers know that the information published in this domains is highly credible (most of the cases). Also the right TLD may help you target the right audience to your site if you own an e-shop .com show that you are commercial organization if you are web developer then .net might be the right top level domain for you.

To the left of the TLD is the second level domain in example.org the example is the second level domain it usually is an easy to remember word or phrase. It is the memorable part of the domain name structure usually it is a word or phrase which is connected with the content of the web site. If you sell whiskey to the Russians then a domain name buywhiskeyinrussia.ru might help you a lot. There are also third and lower level domains in example.co.uk the .co is the second level domain and example is the third level. This can virtually go forever until the lowest level domains.

Nowadays the Internet Corporation for Assigned Names and Numbers(ICANN) regulates the top-level structure of the Internet domain name space. It gives rights to domain name registrars, which can register and assign domain names. The domain syntax is limited by a total length of 255 characters, some domain registries have even shorter limits. The shorter and simple domain names are easier to memorize.

Domain names may consist of several labels divided by dots. All the characters from a to z may be used and all the digits from 0 to 9 also the hyphen is permitted but it has to be surrounded by characters or digits (it cannot be the start or the end of the string). The characters used in the domain are case-insensitive  example.com is the same as EXAMPLE.COM.

It is a common practice for people to buy domain names and use them as real estates. As the few words in the high known top level domains run out very quickly some people buy these domains put some content on it and get visitors just due to the popularity of the word in the domain name. This practice is known as domain parking. In the parked domain you can show adds or put content and build high page-rank for it with SEO and then sell it for profit. For example during the war in Iraq a lot of people typed directly into their browsers iraq.com the owner of the site peaked in traffic and made money from adds he was selling on his site.

Domain names are important, no matter if you are buying a name for a developing business or if you are buying and reselling domains for profit.