The Big Apple will fork out $185,000 for a new top-level ICANN domain extension ending in .nyc to house its future online presence and revenue-creation operations.
While this may seem like a hefty sum to pay for domains that until recently cost less than $35 per year (picture .com and .net domain names), the new domain gTLDs are seen as one of the biggest branding opportunities to hit the Internet.
They allow government agencies like New York City to tightly manage their branding experience while other listed companies like Coca Cola can forge new marketing campaigns using examples such as .coke extensions.
According to Information Week, New York City hopes the new pricey domain will generate revenue as well as help residents locate government services.
“The use of the domain also is expected to bolster local businesses and New York City’s global profile as well as promote and market tourism to the area,” said Information Week.
The city plans to license out the domain to all those lawfully and substantially connected to the Big Apple including initiatives around tourism, business and residential projects.
In addition to licensing fees, New York City hopes to generate additional revenue from click-through fees and advertising sales.
“The city will receive a minimum revenue of $3.6 million the initial five-year contract period, with set yearly minimums of $300,000 for the first year; $650,000 for the second year; $750,000 for the third year; $850,000 for the fourth year; and $1,050,000 for the fifth year.”
Neustar is brokering the purchase and maintenance of the domain for New York City, which looks set to run for a five-year period. However, it will be almost six months to a year before the application is approved and finalized by ICANN.
The new domains offer a number of tangible benefits including new business models, better brand definition, and brand awareness and having tighter control over your online identity.
It can also be used to geographically celebrate local citizens, commerce activities, and culture. Some examples include .boston, .utah, or .california.
ICANN states that by May 2012, once all the applied-for strings have been posted, you will have an opportunity to object to any that you believe would infringe your legal rights.
ICANN then suggests you refer to Module 3 of the Applicant Guidebook for details on the objection process, that is available off their website.