GMO Registry’s outlay for .shop is difficult to rationalize.
I’m still trying to wrap my head around GMO Registry paying $41.5 million for the .shop top level domain name. .Shop is a monster TLD, but it’s hard to justify this upfront cost for any top level domain name.
Clearly, GMO is in this for the long term. Any company that invests $41.5 million plans to be in the business many years from now.
Yet, with short-term results for new TLDs where they are, it’s difficult to figure out how GMO will earn a good return on investment.
Couldn’t GMO just sell a million annual registrations for $40 each? That might be one justification. But that’s much easier said than done.
Source
I’m still trying to wrap my head around GMO Registry paying $41.5 million for the .shop top level domain name. .Shop is a monster TLD, but it’s hard to justify this upfront cost for any top level domain name.
Clearly, GMO is in this for the long term. Any company that invests $41.5 million plans to be in the business many years from now.
Yet, with short-term results for new TLDs where they are, it’s difficult to figure out how GMO will earn a good return on investment.
Couldn’t GMO just sell a million annual registrations for $40 each? That might be one justification. But that’s much easier said than done.
Source
