New Top-Level Domains Create Fear, Uncertainty and Doubt, Part 2
Furthermore, with the addition of more generic word gTLDs and more internet real estate in general, the extreme prices we see for domain names in the resale market should decrease, further diminishing the economic viability of cybersquatting as a business model.
Finally, many of the new generic word gTLDs will enforce criteria that companies must meet to register domain names in the first place. For example, .bank may only be open to banks or .hotel to hotels. Once again, this requirement puts these domain names beyond the reach of the typical professional cybersquatter.
From what we've seen so far, it's likely that many applicants for new TLDs will be brands applying for their brand name. VeriSign forecasts 1,500 applications with at least 1,000 of those for branded TLDs, making the number of truly open new TLDs as the minority.
Myth No. 2: Only big companies will benefit. The costs of applying for and maintaining a TLD are notable. In addition to the application fee, ongoing annual costs to run a registry are expected to run from $100,000 all the way up to $500,000 or more, depending on use. Larger companies can shoulder these costs easily, but smaller businesses are unlikely to be able to afford a .brand. Does that mean smaller companies are simply out of luck?
The primary drivers for ICANN’s TLD program are to promote competition and offer internet users greater choice as the landscape of available .com options further shrinks. Fortunately, small to midsized businesses (SMBs) won't be left out. Community and generic word TLDs will open up many additional second-level domains for SMBs. For instance, a business unable to secure its ideal company name in .com could have additional options as gTLDs and communities emerge and offer relevant online real estate, such as bestmarina.boats or bestmarina.capecod.