At the ICANN board meeting in Singapore today, a vote that was held that will change how future domain names will be created. Anyone can now create a new generic top level domain (TLD)…as long as you have $185K. The Board vote was 13 approving, 1 opposed, and 2 abstaining. Applications for new gTLDs will be accepted from 12 January 2012 to 12 April 2012.

What does this mean? General Motors can now create a “.gm” domain. Coke can have a “.coke” domain. The possibilities are endless. There are many arguments both for and against this new plan. Some argue that banks and other financial institutions could use a branded domain to help avoid fraud. Luxury brands could use a branded domain to help ensure customers are purchasing real goods and help reduce counterfeit products. Both are valid arguments.

Personally, I this will not work in the long run. First, only big companies will have the money to purchase a “vanity domain” (which is what it really is), ultimately pushing out competition from smaller companies. Honestly, I am curious as to how the board came up with the $185K price tag.

Second, I am curious how search engines like Google, Bing, and the like will rate these new domains in organic search. I would think they would automatically get a high page rank, since it is what I would consider a “qualified” domain. In my opinion, this is the same as an uber-expensive PPC campaign that is mixed in with organic results. These new domains won’t have to go through all the traditional tried-and-true SEO best practices, which will again, push small businesses further down in organic results. Google just finished attempting to level the playing field after the JC Penny mess that took place this past Christmas season.

ICANN said they will work hard to address all the concerns that have been brought to their attention.  I certainly hope they do.

Advertisements