Google won today the auction for the .APP extension. Google paid $25 million dollars for the right to sell the .APP new domains.
I wish Google good luck on getting their money back ($25,001,000 was the exact amount) from selling .app domain names only. Because that is not happening any time soon.
Google would either have to charge a large registration/renewal fee of $100 or more per year or come up with some other plan to make its money back. Because while there are a lot of apps in the market, very few of these are making any money, and thus they are not willing to pay a large fee for their domain name. Especially if they have an alternative for a $10 domain.
And I don’t see .app getting a ton of domain name registrations. People are registering cheap domains for their apps and if these don’t work out they abandon them and together they abandon their domain names. There are not domain names that people buy to keep for many years.
Of course Google may have some other plan for .app. Maybe Google will bundle it somehow with its “google apps” services. That would maybe add some value to its services but it will not make a lot of money for the extension.
The above are true if Google really wants to break even and eventually make a profit from .APP. Because Google has a lot of money to worry about things like that. It might be a prestige move or a marketing tool. Or Google just didn’t want to see .APP to the hands of a competitor like Amazon.
Google was up against 11 other bidders that all submitted a deposit so they could participate in the .app auction:
.APP REGISTRY INC.
Amazon EU S.à r.l.
dot App Limited
Lone Maple, LLC
Merchant Law Group LLP
NU DOT CO LLC
Top Level Domain Holdings Limited
TRI Ventures, Inc.
From the auction results it seems that Google was willing to pay up to $30,400,000 for .app. And a lot of the bidders were willing to pay a lot of millions for .app.
10 of the bidders made a bid of $4M or more and 8 bidders made a bid of $8M or more. The losing bidder was willing to pay more than $24,3M but Google ultimately won the .app New gTLD. Was Amazon the second bidder? Maybe we will never know.