Tuesday, June 21, 2011

New web status symbol is expensive

Soon the familiar web extensions like .com, .org, .net and the like will be joined by a host of new ones. From next year on companies will be able to register domain names ending in their own brand name. Mind you, for that privilege they'll have to shell out 130,000 euros plus an annual fee of 17,000 euros on top of that.

Dimitri Reijerman of internet news site tweakers.net thinks big changes are on the way:

"The option to use your own name as an extension will primarily be of interest to large companies, since the price is pretty substantial. But cities, for example, will also be able to buy their own extensions. The result is that from January onwards we'll probably see an enormous growth in the number of extensions."

The prices charged by the US domain licensing body ICANN appear to be aimed at limiting the growth of extension names to some degree. Large companies will mainly want to use the new extension for marketing purposes. It makes them more recognisable than a generic extension like .com or .nl. And there are claims that it will be easier for clients to find the company website or helpdesk.

Internet journalist Herbert Blankesteijn is not convinced:

"If it's solving any problem at all, then it's not much of a problem. The big companies it's aimed can be found very easily anyway. Type 'Shell' or 'Philips' or 'Apple' in Google and you're there. So in that sense, it's no improvement."

Status seems to be a major reason to go for a brand name extension.

"A company with an address like dot-Shell rather than Shell-dot-com is obviously an important company, you're at the top of the pile."

Another reason is that the domain name you want has already been allocated. Companies which saw their desired .com name swiped from under their noses will get another chance. Blankesteijn explains:

"Only one company can be called Apple and have the internet address apple.com. There was a serious dispute between the electronics company Apple and the record label Apple for the use of the domain name. Now the record company, like others companies that lost similar battles, has a new opportunity to get itself a memorable and easily accessible internet address." 

The new internet registration scheme may also create unnecessary costs for businesses.
"A smaller company that doesn't actually have a use for it and is not really interested may quite possibly decide to get one of these new extensions anyway, just to be on the safe side. In case they live to regret not getting one. And of course it's not cheap." 

(Source : Radio Netherlands Worldwide)

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