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Who Are Buyers of New Domains

Posted: April 22, 2015 at 11:46 am   /   by   /   comments (0)

A few years ago, we only had several top level domain names (which include .com, .gov, and .net suffixes that we normally see on URL addresses); however, the organization that manages them recently opened up a market for hundreds of new domains and is now selling them to its highest bidder.

During the 90s, internet’s maintenance was done by just a single person: a computer scientist who is on the payroll of the Department of Defense of the United States, known as Jon Postel. As soon as the job has outgrown him, the US government created a nonprofit organization called the Internet Corporation for Assigned Names and Numbers, or ICANN, to take over the job.

The ICANN

The ICANN is now responsible for keeping track of the owners of the domain names and has the task of maintaining different systems that are on the internet and the World Wide Web. A few years ago, they started creating and selling new top-level domains in the internet industry, particularly to celebrities and business owners.

Benefits of New Domains

Not only do they provide income (since these top level domains are bought for millions of dollars) but they create a larger space for an increasingly populated internet for companies to own domain names that would generally include their brand names, as well as their trademarks.

However, not all of these top level domains will be brand names; for instance, Google bought a generic “.app” domain for around $25 million among other purchases. This gives them the right to make a web address that includes Google.app and Android.app, as well as to change others and register them.

As a matter of fact, according to Google, they will start operating as a registry; thereby, charging those that lease domain names under this domain. So far, it is said that they have bought or in the process of purchasing domains such as .how, .meme, .new, and .PhD.

Other Buyers of Top Level Domain Names

Amazon has recently bought the .buy domain, beating Google in the auction; according to reports, they bought it for $4.6 million.

Unregistry purchased the .mom domain. They said they hope to “honour all mothers by providing them their own online space in which they can build a personalized online identity” — not for free, of course.

The Financial Services Roundtable and the American bankers Association, on the other hand, partnered to buy .bank with the hope of conveying trust for online banking.