28 Jan '16, 3pm

Can you make sense of $41.5 million for .Shop?

GMO Registry’s outlay for .shop is difficult to rationalize. I’m still trying to wrap my head around GMO Registry paying $41.5 million for the .shop top level domain name . .Shop is a monster TLD, but it’s hard to justify this upfront cost for any top level domain name. I’m not alone. Of the seven participants in yesterday’s auction for .Shop, only two were willing to pay more than $15 million for the domain name. Clearly, GMO is in this for the long term. Any company that invests $41.5 million plans to be in the business many years from now. Yet, with short-term results for new TLDs where they are, it’s difficult to figure out how GMO will earn a good return on investment. Couldn’t GMO just sell a million annual registrations for $40 each? That might be one justification. But that’s much easier said than done. Every single top level domain name that has over 100,000 regis...

Full article: http://domainnamewire.com/2016/01/28/48902/

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