.XYZ entered general availability yesterday and after the first few hours it had reached 14,924 registrations. It now ranks 15th among New gTLDs, just below .directory. That is hardly the performance expected from the NEXT .COM. Ntldstats.com reports 17,980 but I don’t know where it got that number from. Zone files that were released a few hours back show 14,924 registrations.
Not sure if this 14,924 includes the registry reserved domains. And I sure would like to know why Network Solutions that is one of the most expensive registrars has almost 50% of all .xyz registrations. The usual market share for New gTLDs for Network Solutions is less than 3%.
Yes, .xyz is not the next .com. It is barely a bad New gTLD among hundreds of much better ones. Sure, it got more on it’s first day than what .guru got that had 12,435 registrations and less than .club that had 25,781. But similar to .club, .xyz has spend a lot of money on marketing. Money it’s not getting back anytime soon.
And .xyz doesn’t have the premium pricing other new gTLDs have and even it’s regular pricing is a lot cheaper. .XYZ got about $75,000 revenue at $5 per domain wholesale.
.xyz, let’s say that .xyz will reach 100,000 registrations in 12 months. With all the good (nothing good can coexist with .xyz) keywords gone I doubt it but just for the sake of the argument here… At $5 wholesale price per domain that would be $500k. And then the renewals will come and a few domains will drop. Domains such as these that hurt my eyes:
I estimate that you need at least 500k to a million per year to run such a registry. Daniel Negari only has one more New gTLD, .college. If he had 100 New gTLDs and different price structure then maybe .xyz could be profitable. But at this pace and with expenses running, .xyz might break even in a few years, if ever. And I don’t even include marketing expenses. This seems like a disaster. The original .XYZ business plan is gone from day one.
Daniel Negari said that “There is no doubt in my mind that the growth rate of .xyz will surpass the growth rate of .com. It won’t take us 20 years to reach one million registrations. It will only take 1 year.”. You need to average at least 2,700 registrations per day over the next 364 days to hit that goal. That will never happen, sorry.
Daniel Negari also said: “I’m going all in on .xyz with a multi-million dollar budget and one of the largest distribution channels of over 200 registrars.” Sorry Daniel, .xyz was a bad bet. Cut your losses and move on.