Role of registries shifting as new TLDs are introduced, likely in 2012.

The traditional role of a registry has been the technical coordination of top level domain names. In fact, many registries have deliberately not looked at themselves as promoters of their TLDs, and only technical service providers.

That has changed a bit over the past few years as registries realized it takes more than putting a domain out there to get a good customer base. And it’s about to change a lot more when new top level domain names are released en masse.

Most new TLDs will be business ventures. The typical business venture will be to make money selling second level registrations of a generic or niche top level domain — be it .movie, .nyc, or .surf. To make these TLDs successful the registry’s primary activity must be marketing. (In fact, what I’m referring to as a registry might not be an accurate description. Most new TLDs will be run by a “registry” in name only; they’ll be business ventures using an established registry provider on the back end.)

How will that change things?

First, the idea of the registry being merely the steward for the TLD will go out the window. Yes, currently registries are mostly a shoe-in to continue running a registry with “presumptive renewal” at the end of their term. But they are also heavily restricted in what they can do while operating the domain. They can’t build a brand around themselves; they must do it around the TLD and at least pretend that they don’t actually own the TLD.

Can you imagine if a company put millions of dollars together to launch .thing, promoted it for ten years, and then had ICANN reassign it to another registry? Not going to happen unless there are serious shenanigans going on at the registry.

New TLD applicants will believe they are creating a TLD all for themselves. As long as they pay the bills, it’s theirs to keep. Without this belief they wouldn’t bother applying. This may not be a bad thing; it’s just very different from the traditional view of a registry.

Second, in light of the goal of these new registry applicants, it will be anything goes. There are limited controls on pricing, but you’ll see a lot more activity similar to what .jobs is doing. Realizing there is little money in running .jobs the way it was intended, the registry is opening up and becoming a business partner.

“We have these generic and good domains. Tell us why you should be able to buy them from us.”

Revenue share deals between registries and applicants for good keyword domains? Registries taking equity positions in registrants’ ventures?

Whether or not this is right, this is the reality. It may not be that bad of a thing, as long is it doesn’t spill over into the existing TLD space. Sophisticated registrants of .com domains registered the domains with the understanding of how .com would be run. That can’t change. For new TLDs, however, everything is on the table.

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