Originally written for LinkedIn Pulse
Norway’s domain name registration per capita is one of the highest in the world. Norway’s identity on the Internet, the .no, sustained its exponential growth over the quarter, as active registrants of the top level domain name climbed to 756412+. Latest statistics from the Norid showed that the exponential growth of registration continues. Norwegian NIC service processes approx. 10,000 to 12,000 new applications for domain name registration every month.
However, what’s the reason for this vast number of domains ownership? Classic scenario dictates these are the portfolio investments. Second case is people keep these domain names portfolio as lottery investment. Chances for anyone buying these domains is equal to winning a lottery seems more realistic. As media coverage for a domain name sold at high prices makes it attractive for the average buyer, and it is an equally wise decision as buying a lottery ticket and except renewing it every year.
Is it a good investment when most of the big local brands already hold their names and startup activity in the country is low? 100’s of new TLDs by launched by IANA makes it favourable for a startup to opt for a better name in other TLD. This way they can avoid hefty prices set by existing owners. Local companies tend to rely on local .NO TLD for their business as it gives them several advantages. However, an average Ola will buy the domain name with some suffix rather than buying it for thousands of kroner.
Above graph shows the growth in the registration
Surprisingly the renewal rate is very high at 86.2% which is higher than .com/.net at 71 %. It should be noted that Norwegians have one of the highest buying power in the world. As per my predictions, these renewal and registration rates are destined to drop. It is just the matter of time when it happens.