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I’m very pleased to report that Minds + Machines’ parent company, Top Level Domain Holdings, Ltd., today appointed Peter Dengate Thrush, former Chairman of ICANN, as its Executive Chairman.

Here’s the TLDH press release in full:

Peter Dengate Thrush appointed as Executive Chairman of TLDH

The Directors of Top Level Domain Holdings Limited (AIM: TLDH.L), the only publicly traded company focused exclusively on acquiring and operating new generic top-level domains (“gTLD”), are delighted to announce that Mr Peter Dengate Thrush has been appointed Executive Chairman of the Company with immediate effect. Mr Dengate Thrush was until recently the Chairman of the Board of Directors of the Internet Corporation for Assigned Names and Numbers (“ICANN”), where in June 2011 he led the ICANN Board to approve the programme to create new gTLDs. (more…)

Some TLD applicants have been saying that they’re “community” applications, which means that would avoid an auction and prevail over even deep-pocketed competitors. But according to ICANN’s Applicant Guidebook, very few if any applications will qualify as a community. If you’re an applicant who’s been telling your supporters or investors that you’re going to win because you’re a community, you might want to take a step back.

This post will look at the reality of who will gain community status under ICANN rules. A few already-announced TLD applications that are commonly thought to be communities — but none of them are even close to qualifying.

One announced applicant for .ECO keeps putting out notices about the “.ECO community.” A .GAY applicant makes lots of references to the gay community. And a well known .MUSIC applicant wrote a blog post just a few months ago that he would file a community application. (Note: Minds + Machines has announced support for bids for .ECO and .GAY — so we’ve looked at this question closely.)

Most people would say there is such a thing as the gay community, maybe music and eco communities not so much. But it doesn’t matter: from the ICANN point of view none of them will qualify for “community status” in their gTLD application. Under ICANN rules, even the “ICANN community” wouldn’t qualify as a community.

Scoring the Apps

Let’s score .ECO, .GAY, and .MUSIC. Turn to section 4.2.3 of the Guidebook, called “Community Priority Evaluation Criteria” and read through how they will score each criterion. Remember, you have to get 14 out of 16 points to beat out your non-community competitor. If you don’t get 14 points, you can still proceed to an auction, but you’re stuck with all the rules you put in place to try to qualify as a community.

Here is a table showing how I would score each of these TLDs would score in a “community priority evaluation.” If you go through the guidebook and score them yourself, you might disagree by a point or maybe two, but if you did, they would get a lower score. The scoring I used is very generous. Explanations follow the table:

Let’s go through it. There are four criteria groupings, and subparts below each one.

Criterion 1: Community Establishment

Part A is “delineation,” which means a “clear and straightforward membership definition.” Members of .ECO are…? People who believe in ecological causes? Not terribly clear. Score of 1. .MUSIC? People who like music? Even worse but there is some connection, a charitable score of 1. .GAY? People who say they are gay? Leaving aside how they’re going to check (that comes later), it’s not super clear, especially as the gay community itself typically embraces bisexual and transgendered people. Generously, we will give .ECO 1, .GAY 1, .MUSIC 0.

Part B is “extension,” which means a community of “considerable size and longevity.” If you accept that these are communities, everyone here scores 2 out of 2.

Criterion 2: Nexus of the Proposed String and Community

Part A is “Nexus,” which looks at how closely the TLD name describes the supposed community. ECO doesn’t really match the name of the movement (it is also called the green movement, or the conservation movement), MUSIC isn’t really about people, but OK, and GAY pretty much means gay people. Out of a possible 3, I score .ECO 1, .GAY 3, .MUSIC 2.

Part B is “Uniqueness,” which asks if there is any other meaning of the word. ECO could easily mean “economics,” GAY doesn’t really mean anything else these days, and MUSIC means lots of things, as big generic words do. Out of 1, .ECO gets 0, .GAY 1, and .MUSIC 0.

Criterion 3: Registration Policies.

The stricter you are, the higher you score. Because you can set your own registration policies, everyone gets the maximum score on this one, though on an application they might not, since super-tight registration rules are suicidal for most TLDs. Also, if you don’t pass the community test, you still have to enforce your registration policies (more on that below). So, as a very generous “gimme”: out of 4 possible points: .ECO 4, .GAY 4, .MUSIC 4.

Criterion 4: Community Endorsement

This is where community applications go to die. If there is any significant objection to your application carrying the banner for the community, you will lose two points, which means that you have to be perfect on every other point — highly unlikely.

Part A is “Support.” If everyone supports you, 2 pts; if you have some support, 1 pt.; no support, a zero. Out of 2 pts., .ECO gets 1, .GAY gets 1, .MUSIC gets 1

Part B is “Opposition,” which can easily come from your competitors. The standard is “relevant opposition from one [or more] group of non-negligible size.” They don’t have to prevail in their opposition for you to lose points — they just have to file. I think all of these applications will have some opposition from more than one quarter. Out of a possible 2 pts., I have .ECO with 0, .GAY 0, .MUSIC 0.

.GAY is clearly the strongest case for community of these three applications, but still falls far short at 12 pts out of 16. .ECO and .MUSIC don’t even come close.

So Who Is a Community?

The only way to make sure you qualify as a community is to *be* the community. The American Association of Retired Persons (AARP) could get .AARP as a community TLD, because they own the entire name: there is no-one who could object. In this sense a community in the ICANN sense is just like a brand, complete with intellectual property rights, except that it may not have a corporate structure or a profit motive. Otherwise I can see very little difference.

The key factor in the way ICANN has set this up is that although it’s very hard to qualify as a community, it’s very easy to object to one, and that’s where community applications will falter even if they are strong in other areas. Any institution of “non-negligible size” that claims to represent a community (loosely defined) can object to a community (very tightly defined) application. If one such institution objects, you lose a point. If two or more do, you lose two points. (They can object even if you’re not a community, but in that case they have to prevail — a community application loses points even if the objection is not upheld.)

Bottom Line: Think Very Hard Before Applying As a Community

If you have a competitor with some support, or if you haven’t made sure that every organization in your community is on board, you are highly unlikely to pass the community priority evaluation. And since that evaluation only happens if you do have a competitor or a community objection, in most cases it makes no sense to apply as a community. If you have credible competition, you almost certainly will not pass the community priority evaluation, and you will be stuck with restrictive policies that will be very hard to change later.

Search marketers and SEO mavens are starting to pay attention to top-level domains (TLDs) now that ICANN has announced a starting date. Many of them are dubious about the benefits of TLDs to search, but they are missing out on why search will benefit from new TLDs — and vice-versa.

A recent article on SEO.com looked at the value of new top-level domains for search. The author is skeptical:

As an online marketer, I can’t help but question how these domains will rank in the major search engines.

One of the reasons for his skepticism comes from a common but completely erroneous notion that there’s some sort of order to how top-level domains work today:

As domains become less standardized (.com for commercial sites, .edu for educational sites, etc.)…

I’d like to question that premise. While .EDU certainly has meaning (it’s restricted to accredited educational institutions in the U.S.), .COM really doesn’t mean commercial anymore, .NET certainly doesn’t mean network infrastructure anymore, and .ORG is available to whomever wants it.

Contrary to the view above, the new gTLD namespace is likely to become more standardized than than the current namespace, largely through self-selection. If .LACROSSE is created as a new TLD, there’s an excellent chance that web sites under it will have something to do with lacrosse — it would be silly to put your site about ice hockey there, for example. A similar dynamic will take hold with other top-level domains, with the exception of a few (such as .WEB) that will want to copy the free-for-all that .COM has become. One of the reasons that search engines don’t really use top-level domains to rank results is that they are largely meaningless: at this point .COM is just four meaningless characters after a name.

To the extent a TLD extension is indicative of the content on the web sites within it, the TLD will have a positive effect on search. Users will also respond to the semantic cues offered by new TLDs. If, for instance, someone is searching for “hotels in New York,” they may well choose to click on the listing with an address of

www.hotels.nyc

rather than something long and unwieldly like

www.expedia.com/New-York-Hotels.d178293.Travel-Guide-Hotels

(the first result when I searched for that phrase on Google).

There may well be a virtuous cycle where users respond to the semantic cues offered by new top-level domains, and because user choice is part of the relevance algorithms used by search engines, web sites under relevant top-level domains will be promoted.

New top-level domains will re-introduce meaning into the extension, and search engines will need to pay attention to that, because the TLD extension will once again start to contain real information.