What We Learned From .NXT

Posted March 7th, 2011

The only thing we can expect of the future of the Internet is that it is evolving. The way we use it changes constantly and we see patterns in the change. Social networking for instance has evolved from message boards to chat rooms to the early platforms what we now recognize as social networking. It will continue to advance. Facebook is not the future of social networking, but it is one of many springboards for what is coming next. As the Internet changes, the way we think about and operate it has to change as well. The models in place to implement progress must change also. Technology evolves incredibly fast. Our decision making processes do not.

Such was the spirit of the .NXT conference for New gTLDs in San Francisco; a gathering of New gTLD applicants, registries, registrars, consultants and speculators.

The vibe of .NXT was emblematic of the coming change. A laid back excitement was palpable. Attendees were actively social, interesting questions were asked during the sessions and almost every speaker had a point. Coffee breaks were orgies of pretzels and popcorn with nacho cheese dipping sauces. People seemed to be genuinely enjoying themselves.

There were many comparisons to ICANN meetings, but that comparison is unfair. Any meeting focused on progress and ideas and not hard decision making is bound to be a bit more positive, however, it was incredible to attend a meeting of people sharing a common vision that wasn’t weighed down by the mechanics of bureaucracy.

Despite the good will, sessions weren’t marked by a head-in-the-clouds optimism. Sobering, practical realities were not ignored, but hammered home. No one seemed interested in tip toeing around the elephant in the room.

The New gTLD process thus far has been hard. For those whose careers are deeply entwined with the process it has been a long and sometimes terrifying road. Companies dependent on the launch have downsized, people have lost their jobs. While there are a lot of voices complaining about the process, few are willing to admit the dark realities of the sacrifice that many applicants, consultants and other domain professionals have made to stay in the game.

As has been said many times, no one wants to rush through the process at the expense of doing it right. However, I think as a group we would like to move forward and there are ways to do that that are productive and ways to do it that are not. The community may be a bit bruised by the uncertainty of the process and financial losses but it was clear at .NXT this is a group that want to move forward and are hungry for change.

The most valuable aspect of .NXT was that attendees were able to gage how diverse New gTLD interest really is. People from all corners of the program voiced their concerns, issues and solutions. It was an opportunity to understand that none of the issues surrounding the New gTLD program are black and white. They are far more complicated and nuanced than what can be crammed into a pull quote or sound bite.

We Share the most valuable things we learned at .NXT after the jump.

Many valuable bits of advice were handed out during the .NXT sessions in regard to applying for and launching a New gTLD. These are some of the best:

On Operating

Work out your business model.

Define your idea of success and then figure out how much money you need, not the other way around.

Not all TLDs will be created equally.

Some will require a lot of funding, others, very little. The scale of the TLD one intends to operate will determine the route taken for funding as well as team building.

Raise enough cash. Once a gTLD is turned on you can’t turn it off.

Operating a gTLD is a long term commitment. It is imperative to have long term, stable, funding.

It is not necessary to show a profit during application, just that you are solvent.

Your idea doesn’t have to be a moneymaker to make it to delegation. You need to be competent, financially solvent and have a sound idea.

Creativity is important but you must have a sound idea.

A successful TLD will have a business model beyond selling names.

There is a cost to exiting that is far more than financial.

In the event that you decide to cease operating a TLD that has already been integrated it is not as simple as handing your TLD off to someone else.

On shaping your idea and attracting users

Be realistic about your skill set and  stick with what you are good at.

There are a lot of companies and consultants available who specialize in New TLDs. Recognize your talents and delegate the rest.

The farther afield TLDs go, the thornier things get.

Many TLD specialists encourage three to four character extensions. Beyond that, it is also recommended to stick with a TLD that has a meaning that registrants can easily associate with your brand.

Your brand is your stock. Create perception of value in your TLD

It is very important to recruit your early adopters.

Early adopters are excellent evangelists. Figure out who in your target demographic will be your early adopters and target them specifically. Their word of mouth can make all the difference in the growth of your TLD.

Focus on  accessibility and support services.

As one panelist pointed out, customers don’t accept that the registry isn’t open as a response to their complaints.

Don’t have weird business rules and practices.

Businesses occasionally need to change their policies, however completely change the game on your registrants or (if you choose a stand alone) registrar. Look to previous models and figure out what will work for you in most scenarios in advance.

On vertical Integration

Vertical Integration.

While we know it will be different from the status-quo we can’t know exactly how it will play out. However, a lot of ccTLDs are already successfully integrated. Functional models do exist.

On The Bigger picture

The new gTLD launch will be global.

What we tend to forget and what was amply clear at .NXT was that new gTLDs are a global exercise. When questions about demand arise, one can’t help but consider the billions of people and millions of businesses that cover the globe.

There is an anxiety with the current lack of dependable time line.

There aren’t just a few parties who are anxious about the lack of dependable time line, the entire community is anxious. A lot of money is at stake. Companies are allocating considerable resources that can be difficult to justify when the time line continually changes The new gTLD initiative will (once it gets going) will be good for the global economy. It is not great for the global economy to loose potential applicants due to an unreliable process.

We are under a political microscope and we need to get it right the first time.

This program is no longer under the radar; it is covered in the mainstream media and large corporations and global brands are beginning to announce applications. It is incredibly important that we get this right the first time or as close to right and as far away from community embarrassment as possible. We have the capacity to make New gTLDs a great success, but we need the opportunity to prove that it is necessary and beneficial for end users.

For more information, please visit http://www.thisisnext.org or follow @dotnxtcon on Twitter for continued updates on New gTLDs.

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Posted in Conferences, Cool Ideas, gTLDS, ICANN by Kelly Hardy