New TLDs as Investments: Risk vs. Reward
4 min read
## The New TLD Landscape
ICANN's new generic TLD (gTLD) program, launched in 2013, introduced over 1,200 new extensions — from .academy to .zone, including industry-specific (.finance, .legal, .tech), geographic (.london, .tokyo, .berlin), and generic descriptive extensions (.guru, .expert, .solutions).
From a domain investing perspective, new TLDs have been a mixed story: a small number have developed genuine secondary markets and investment value, while the vast majority have poor liquidity, low end-user adoption, and weak resale prospects.
This guide will help you distinguish which new TLDs merit consideration as investments and which should be avoided.
## The Winners: New TLDs With Real Investment Value
### .io
.io is the country code TLD for the British Indian Ocean Territory, but it has been culturally adopted by the technology startup community as shorthand for "input/output." Since approximately 2012, .io has become a premium alternative to .com for tech startups, gaming companies, and developer tools.
The secondary market for .io is the most liquid of any non-.com extension. Short, pronounceable .io domains regularly trade for $2,000–$50,000+. "Bet.io" sold for $24,000. "Chess.io" for $26,000. The extension has genuine end-user demand.
Investment consideration: Short (5 characters or fewer) dictionary word .io domains carry legitimate investment value. Generic keyword .io domains have a narrower buyer pool than .com equivalents but real liquidity.
### .ai
.ai is the country code TLD for Anguilla, but it has been adopted as shorthand for "artificial intelligence." Since the AI industry exploded in 2022–2023, .ai domain values have surged dramatically. Registrations in the .ai namespace have grown from roughly 150,000 to over 500,000 between 2022 and 2024.
Short .ai domains have sold for impressive prices: "Chat.ai" ($1.8 million in 2023), "Pilot.ai" ($350,000+), "Mind.ai" (large undisclosed sum). Even less prominent .ai domains have commanded five-figure prices.
The risk: .ai is tied to a technology trend. If AI hype contracts, .ai values could retreat. The extension is also controlled by the Anguilla registry, introducing a small sovereign risk element.
Investment consideration: Short, meaningful .ai names are the highest-conviction new TLD investment currently available. They have genuine demand from well-funded AI companies.
### .co
.co (Colombia's ccTLD) was positioned as a global alternative to .com from 2010 onwards. It achieved moderate success as a startup-friendly extension — "Overstock.co" and many startups have used .co domains. The secondary market exists, with short .co names selling for $500–$10,000 range regularly.
Investment consideration: Decent liquidity for short, generic names. Not as strong as .io or .ai, but better than most new gTLDs.
### .app and .dev
Google's .app and .dev extensions, controlled by Google Registry, have some secondary market activity — primarily among tech companies. Short, relevant names sell in the $1,000–$10,000 range. These are legitimate niche extensions with corporate backing.
## The Losers: Extensions to Avoid as Investments
### Most Generic New gTLDs (.guru, .solutions, .expert, .ninja)
Extensions like .guru, .solutions, .expert, .ninja, .digital, and similar "descriptive" new TLDs have very poor investment track records. End-user adoption has been low — most businesses using these domains look at them as temporary solutions while seeking a better domain.
The secondary market for these extensions is nearly nonexistent. Domains registered at $30–$50/year rarely sell for more than registration cost. They fail the basic test of domain investing: that the extension has genuine end-user demand that creates a buyer pool.
### Industry-Specific New gTLDs (.plumbing, .photography, .catering)
Hyper-specific extensions were theoretically appealing — "Seattle.plumbing" or "Wedding.photography" — but adoption has been minimal. Most businesses in these industries prefer generic .com domains.
Secondary market: negligible. Avoid for investment purposes.
### Geographic New gTLDs (.london, .nyc, .berlin)
Geographic new gTLDs have found niche adoption in their target cities but have weak secondary markets. A business in London might use a .london domain, but the pool of buyers for any given .london domain is limited to London-oriented businesses — a fraction of the overall market.
## Evaluating a New TLD for Investment
Before investing in any new TLD domain, ask:
**1. Is there demonstrated secondary market activity?**
Check NameBio for actual sales of this extension over the past 24 months. If you find fewer than 100 sales, the market is thin. If the typical sale price is below $1,000, the economics are weak.
**2. Do end users adopt it without investor pressure?**
Real adoption means businesses voluntarily choose this extension for their primary web presence — not just as backups or speculative registrations. Check how many Fortune 1000 companies use the extension as their primary domain.
**3. Is the extension independent of a single technology trend?**
.ai is currently strong but linked to a specific technology cycle. Extensions with broader cultural adoption (like .io) have more durable value.
**4. What are the registration fees?**
Some Premium Domain (Registry Premium) new TLDs have high Domain Registration costs ($50–$150/year vs. $10–$15 for .com). Higher carrying costs mean you need proportionally higher sale prices to justify investment.
Use TLD Finder to compare extension metrics and use TLD Comparison Tool to understand the relative market position of specific extensions.
## The Portfolio Allocation Question
Most serious domain investors keep new TLD exposure to 10–20% of their Domain Portfolio at most. The .com market is deeper, more liquid, and more established. New TLDs offer potential outperformance but higher variance.
A sensible approach: allocate meaningful investment to .io and .ai (the clearest winners), small speculative positions in .co, .app, and .dev, and avoid the long tail of new gTLDs entirely for investment purposes.
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