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it.com A New Turn in the Domain Industry: How Startups and Small Brands Are Claiming Their Own TLDs – Sergey Gorbunov, it.com Domains

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The upcoming round of the New gTLD (generic Top-Level Domain) Program opens the door for new domain extensions. Applying for your own Top-Level Domain (TLD) is a complex process, but you don’t have to be a major corporation to do so; the process is feasible even for small startups. The company, it.com Domains has launched a registry service provider (RSP) to help all TLD registries (current and future) manage their domain extensions in accordance with all ICANN requirements.

Sergey Gorbunov, Director of Registry Services at it.com Domains, discussed with us why a business might need its own TLD, what you should be prepared for when entering the domain industry, the challenges TLD registries face and how RSP can make domain management easier.

Personal View on the Domain Industry​


it.com Domains: Sergey, you’ve been in the domain industry for many years. What drew you to this location, and how has your perception of it changed over time?

Sergey Gorbunov:
To be honest, it was a stroke of luck: I was seeking a summer internship and a domain registrar offered me a three-month placement. I didn’t intend to stay long, but the company offered numerous opportunities for advancement, so I saw no reason to leave — and nearly 20 years later, here I am.

One thing I’ve noticed about the domain industry over the years is that it can be difficult to navigate: as you start, you’ll need a few years to learn the ropes. However, once you become familiar with the topic, you’re likely to stay for a long time since your experience is essential to the sector, and it just won’t let you go, always presenting new career choices.

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Source: Unsplash

When I started in 2007, the domain market was less mature and so it was expanding fast. Apart from country-code Top-Level Domains (ccTLDs), there were just few generic ones, and because of that it was the registry market in the first place: registrars had to hunt for registries’ attention. Now the tables have turned: hundreds of new domain extensions have been introduced over the last decade, and it is up to registrars to decide which ones to offer. So registrant choice has grown significantly and the same has happened to the competition among the industry players — ultimately, I see it as a development in the right direction, as these trends stimulate better customer experience and innovation.

it.com Domains: When you consider how domain infrastructure is positioned today, particularly in light of the rise of digital platforms and artificial intelligence (AI), what do most newcomers overlook or misunderstand?

SG:
Since my early days in the industry, I’ve heard that domains will soon be obsolete due to advanced search tools, social media, marketplaces, and, now, AI. None of these predictions have come true thus far. And here is my perspective on why.

First and foremost, domains are the most well-known, simple-to-use Internet identifiers, understood by the vast majority of people worldwide. Let us refer to it as a sustainable habit, and more crucially, a convenient one. Any widespread habit is tough to modify, and this is also true for domain names. That is why, if you want to be properly noticed online by a larger audience, a good domain name remains essential.

On top of that, domain names provide individuals with greater control over their online identity than any other option. You can occasionally breach a social media or marketplace policy, and your presence there will be removed; we see this all the time. When you have a domain, you may create and maintain your website without worrying about such risks. Even if your hosting provider or domain registrar fails, you can migrate the website to another one and keep it up and running.

TLD: Strategy, not Luxury. Who Needs Their Own Extension and Why?​


it.com Domains: With a new ICANN application round on the horizon, why is this such an important opportunity for investors, cities, and budding digital brands?

SG
: There are a few main reasons to apply for a TLD:

  • To launch a registry business — this is for someone with a great concept for a domain extension that will be in high demand among registrants. Recent launches of domain extensions, such as the .it.com, demonstrate that there is still space for success with the correct market strategy and a certain level of persistence.
  • To improve digital identity (this may appeal to brands and geographic locations). For a brand, this is an opportunity to create its own domain space, which is well-controlled and hence more trusted by the target audience.

These two reasons may complement each other; for example, a well-developed TLD for a certain geographical location might boost its visibility on the Internet while also being a revenue asset.

Furthermore, we may see some brand-new, viable rationales for why someone might decide to get a domain extension, keeping in mind previously unknown use case scenarios.

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ICANN launched the New gTLD Program to promote the growth of the Domain Name System (DNS) and make it more versatile. Stages of the upcoming round of the Program. Source: ICANN

it.com Domains: We often think of domain extensions as something only for big corporations. What are some interesting or unexpected examples of how smaller players, like startups or content creators, could benefit from owning their own TLD?

SG:
Successful small businesses eventually grow into solid enterprises, and the sooner they start utilising their own TLD, the easier the adoption process will be. A newly founded firm is just beginning to build online awareness, and they can do it using a corporate domain extension. This means that buyers of the budding brand, right from its launch, will become accustomed to this domain strategy..

Conversely, for well-known businesses it might be more complex to switch to a dedicated TLD later on, as they have been using just regular domain names (e.g. companyname.com) for a long time, those have been widely-promoted and are well-known by the brand’s target audience, and any related changes require careful planning and consistent efforts to prevent customer confusion.

The Reality of a TLD Launch: Budget, Complexities, and the Role of RSP​


it.com Domains: Could you clarify what RSP is and how it affects someone who wants to establish a domain extension?

SG:
Simply put, we offer software that enables a TLD registry to maintain a database of registered domain names, integrate with registrars, organize billing for the extension, and connect to third-party providers (e.g., for DNS infrastructure) necessary for its operations. This functionality is subject to a number of standards and requirements — our solution fully meets these and is backed by a team of domain industry veterans focused on excellent customer service and ready to provide expert guidance at every step of obtaining and operating a domain extension.

A team of domain industry veterans, our solution focuses on great customer service and expert guidance for every step of obtaining and operating a domain extension.

it.com Domains: What specific problems in the traditional registry model were you hoping to solve when developing the RSP platform at it.com Domains?

SG:
I would not say we’re not a traditional backend provider; rather, our goal is to excel beyond others, particularly in terms of technology and client support. For example, our platform contains no legacy code, allowing for swift implementation of updates to introduce new features and meet specific customer needs.

This system was initially developed by our team to run the .it.com extension. It has been in operation for a while, with continuous improvements — and we’re confident in its state-of-the-art quality, being ready to offer it to other registries.

We provide full-scale functionality for comprehensive TLD management, including business intelligence and domain abuse handling tools. Also, our system is connected to major registrars worldwide such as GoDaddy and Namecheap. This means easier access to the global distribution channel for domain extensions that use RSP.it.com.



it.com Domains: What are some of the most practical things companies should be aware of when thinking about launching their own TLD – timelines, setup, or legal aspects?

SG:
The first thing to remember is that the costs are high. A company interested in getting a top-level domain will be charged an application fee of about $227,000, and additionally there are payments to a number of technical providers that cover mandatory services for a TLD. Then, once the extension is operational, ICANN receives annual payments. If you intend to sell domain registrations to the general public, you likely must be prepared to spend substantial money on marketing to ensure that the domain names you promote are properly accessible for purchase at registrar shopfronts and that registrants are aware of them.

Budget considerations are not the only ones to keep in mind. The procedure of obtaining a TLD is intricate, and applicants from outside the domain industry may find it complex at first to navigate the landscape with sufficient depth. So, a recommendation here is to seek out and rely on experienced partners who can guide you to the successful delegation of a TLD.

The entire process and difficulties of launching your own TLD are described in detail in Joe Alagna’s and Andrey Insarov’s insider guide How to Get Your Own Top-Level Domain: An Insider’s Guide to ICANN’s Application Process. In my opinion, this book is a must-read for anyone who is planning or already has their own domain extension.

it.com Domains: What have you personally learnt from dealing with potential TLD applicants, and how has this influenced your perception of what they really need?

SG:
From the backend provider’s perspective, we commonly hear that legacy companies who have been in the market for years are plagued by so-called technical debt*, which impedes fast product development to meet the needs of registries.

Because innovations are slower and more expensive for these RSPs, they are often less flexible—which is where we come in, with the purpose of providing a better customer experience.

Check Your TLD’s Demand​


it.com Domains: Finally, for those who are curious but unsure, what are the top three reasons you believe someone should seriously consider creating a TLD ahead of the next round of the New gTLD Program?

SG:
My advice to any potential applicant is to address the following question: “Does someone need the domain extension you’re planning to attain?” If so, you have a reason. Understanding this, however, necessitates some careful considerations ahead of time.

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Source: Unsplash

For example, if you want to run a TLD to sell domains under it, you should estimate whether indeed a target audience for it exists, of a size sufficient enough to make your business model sustainable. You should also ensure that you can reach this group and pique their interest in registering your domains.

If it’s a brand TLD, you should consider use cases and determine how they will be aligned with your current corporate domain portfolio, i.e. whether a TLD will exist with a clear purpose as an addition to those domain names; or, if it will eventually replace them in communications with your customers, what the corresponding transition strategy will be.

All these prior deliberations are important for an extension to become successful, helping to prevent the not-so-rare situations when a substantial effort of getting a TLD practically results in nothing, and once delegated the string remains dormant in oblivion.

*Technical debt is a metaphor that describes the future cost of choosing an easy or quick solution in software development or IT systems instead of a more effective, long-term approach. It reflects the trade-off between short-term benefits and long-term sustainability.

Keen to learn from the leading industry experts? Visit it.com Domains blog and follow us on social media.

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