DomainMart Outlines Branding Hierarchy and Premiums Among gTLDs

The optimal branding decision among the generic top-level domains (gTLDs) is based on the availability of the TLD, the price premiums among the alternatives, and the level and type of TLD signaling that the company is trying to pursue.

Berkeley, CA (PRWEB) January 9, 2006 –- DomainMart, a leading provider of quantitative and analytical domain-name services, outlined today a model that solves the dilemma as to what generic top-level domain (gTLD) branding to use in the absence of “.com.”

The optimal branding decision among the generic top-level domains (gTLDs) is based on the availability of the TLD, the price premiums among the alternatives, and the level and type of TLD signaling that the company is trying to pursue. Based on these factors, the model suggests the optimal gTLD branding when the dot-com option is unavailable. The price premia are estimated using a tree-regression model.

“Incorrect TLD branding can mean the success or doom of an organization, especially a charitable organization’s ability to respond in times of crisis,” says Alex Tajirian, DomainMart CEO.

To test for the existence of price differences across domain name marketplaces, a tree-regression model is used. For domain names in the $1,000-$11,800 price range the study finds a significant difference between two groups: .net and .org on one hand, and the rest in a separate cluster. The average premium advantage of the former group is 248 percent.

However, the statistical model was unable to discriminate among the considered gTLDs for domain names in the higher price range. One possible explanation is the paucity of sales data on high-priced domains under the considered gTLDs, which make statistical discrimination among them unattainable.

“As more data becomes available, it may become feasible to further refine premium differences among gTLDs,” notes Tajirian.

The branding model postulates a two variable option matrix: the company’s desired TLD signal, which takes two states weak and strong, and the availability of the domain name under the optimal signaling option.

About DomainMart
DomainMart is an industry leader in providing domain-name secondary-market products and consulting services, including appraisal, escrow, private investment management accounts, protection, valuation, and parking traffic monetization management since 1996.

For more information, please visit http://www.domainmart.com/news/Branding_Hierarchy_Among_gTLDs.pdf or contact:

Tom Saitori, Marketing Specialist
DomainMart
e-mail: TomSaitori @ domainmart.com
Tel: +1 (415) 905-4234

###