Top Level Domain Holdings is to launch a new company, backed with a $2 million starting pot, devoted to investing in second-level names in rival registries’ new gTLDs.
TLDH chairman Fred Krueger told us today that the new company, which will be found at SecondLevel.co, will start buying up attractive names as soon as new gTLDs start going into general availability.
The move is one of several announcements TLDH is making — focusing on the registry, registrar and buyer levels — at the NamesCon conference here in Las Vegas this week.
SecondLevel.co will take money from institutional investors, buy up new gTLD second-levels, and return 70% of the profits to its investors on a quarterly basis if and when the names are flipped, Krueger said.
There are no plans to monetize the names in other ways yet, Krueger said. He doesn’t think new gTLD domains are going to get enough type-in traffic to exploit, for example.
It sounds like there’s going to be a bit of bargain-hunting going on here.
Other new gTLD registries have of course already slapped premium pricing, and in many cases premium renewal fees, on the names they consider most attractive.
When TLDH buys up such a name it will effectively be saying that it reckons its competitor undervalued the name.
That said, rivals such as Donuts have claimed that they’ve priced their premium names at levels that will still allow flippers to make a profit, so maybe there’s an opportunity here.