Choosing an extension for your domain name is easy, right? Well, not quite. You might think that slapping the .com TLD at the end of your domain is all there is to it, but you’re wrong. For starters, getting a good domain name with the .com, .org, or .net TLDs is becoming harder and harder. Mainly because there are more than 1.13 billion websites worldwide, and 160 million of them use the .com extension. Another 13.2 million use .net and 10.7 million use .org.

As you can imagine, finding a relatively good name for a competitive industry is borderline impossible. More importantly, this can be a problem for legacy brands just coming on the internet. Mom ‘n’ pop businesses that have had to build their name and authority over the years with local customers and want to expand their outreach are often forced to forfeit their name, as it was taken by someone years prior.

Thankfully, there is a solution. Industry-specific TLDs are the perfect way to avoid the clogged traditional TLDs like .com, .net, and others. Instead, you can choose a TLD highlighting your industry, like .shop or .law.

These TLDs can help businesses define their niche and stand out in a crowded marketplace. But, like any business decision, choosing an industry-specific TLD comes with both advantages and drawbacks.

So, let’s take a closer look at the pros and cons of industry-specific TLDs.

What Is An Industry-Specific TLD

Before we get to the pros and cons, let’s take care of the definitions. The industry-specific TLDs are the second wave of general Top-Level-Domains or gTLDs. They are often called descriptive TLDs, as they describe the niche of the website using them. There are some notable exceptions, of course, like .top or .active. They emerged as part of the broader initiative by the Internet Corporation for Assigned Names and Numbers (ICANN) to increase domain name availability and relevance. This initiative led to the creation of hundreds of new Generic Top-Level Domains, many of which highlight a specific industry. The .store, .law, .food, .fashion TLDs are perfect examples.

The main goal of ICANN was to provide new businesses in the booming online market with industry-specific alternatives to the legacy .com, .net, and .info extensions. This allowed smaller and younger brands to find brandable and catchy names instead of scraping the leftovers from the big dogs.

Now, new and small businesses have the opportunity to operate under their preferred name rather than looking for a free one with the .com extension.

However, there are some drawbacks to industry-specific TLDs as well. So, if you are looking for such a solution, familiarizing yourself with the pros and cons of industry-specific TLDs is wise. As usual, we are here to help. So, let’s discuss the four biggest advantages and the four biggest disadvantages of having an industry-specific TLD.

Pro: Enhanced Brand Identity

Brand names were never about telling the customer what your industry is. Ford became synonymous with cars long after the company was established. So did HP, Apple, and many other brands that today are famous in different industries. However, with the massive competition online and the struggle to get a better search engine position, brands often go for the obvious. Sure, that’s not a problem, as long as the name is catchy and easily memorable. However, these names are limited as well.

Industry-specific TLDs have a much better solution. You can still name your business after yourself, your kids, or your mother-in-law if you want to. However, you can also add your industry through the extension. For example, the website Josh.food won’t leave any doubt about what the brand Josh offers. So, now you can get the same SEO score with the added benefit of creating a better, more memorable brand identity.

This is especially handy in competitive industries, where most brands will use similar names to try and better their SEO score. This way, you get about a gazillion websites with “car” or “auto” as part of the name. Now, you can avoid all of this by simply choosing the industry-specific TLD .auto. Now, you can go for domains such as bestgerman.auto. You can go even further, promoting both your geographical location and your industry. Is there any misunderstanding about where and what the website nyc.auto offers?

So, while the industry-specific TLD won’t help you enhance your SEO score out of the box, it allows you to have much better branding. Moreover, with some clever adjustments and creativity, you can sneak your way to the top of Google SERP for a specific audience.

Con: You Still Face Brand Limitations

While industry-specific TLDs can enhance your branding, there are also some limitations to consider.

First and foremost, you are still limited by trademarks. You can’t just register bmw.auto and start selling cars. Well, you can, but you will have to face BMW’s legal team, and you won’t like the experience. So, before registering a domain name, you must consider whether the name wasn’t trademarked.

Moreover, not all industries have an industry-specific TLD. For example, there is no such thing as .copywriter. On the other hand, if you are a copywriter, you can go with the .author TLD. However, this won’t help you target the right people for your website. People most often associate authors with fictional writing. So, they may skip you as a potential freelance supplier based on that assumption. Thus, unfortunately, not every niche has a feasible industry-specific TLD.

Finally, there is the limitation with growth. Over time, your business will grow, and you’ll want to diversify. For example, you can start with a small blog on relevant topics. With your audience growing, you might want to diversify and grow into a news agency. Sure, you can retain your .blog website, but it will no longer portray your brand accurately. Instead, you should switch to .news TLD. This, however, will instantly downsize your public, who are used to getting organically on your blog.

So, before you get your industry-specific TLD, consider what your plans are and what you are going to offer, not just right now but in the future as well.

Pro: Better Audience Targeting

Industry-specific TLDs won’t just attract more audiences. They will start attracting the right audience. In other words, you will enhance not just the quantity of your traffic but also its quality. Ultimately, this will lead to much better performance, lower bounce rate, higher CTR, and much higher conversion rates.

In practice, your industry-specific TLD will work as a barrier to audiences who are not interested in your products. For example, if you offer extreme sports equipment, you wouldn’t want people searching for extreme adventures to get on your website, as they simply leave. Sure, a few of them will probably browse around, but ultimately, they won’t lead to a conversion. This can lower your overall SEO score, as the bounce rate is an indirect factor.

However, if your website is extremesport.shop, users searching for travel and experiences will simply skip your website. Sure, you will reduce the amount of traffic, but you will enhance its quality significantly.

On the other hand, it can attract those looking for equipment. Some researchers suggest that users are more prone to click on a TLD that clearly aligns with their search intent than on a generic TLD, even if it’s .com

Con: Limited Recognition

Unfortunately, despite being outstanding at alluring the right audiences, industry-specific TLDs can lack recognition. This is especially true for the older generation and users who are not very tech-savvy. Although these TLDs have been on the market for a decade now, several factors have made it impossible for them to gain the general trust all around.

Probably the biggest hurdle to gaining recognition is the traditional gTLD. .com has been around since the beginning of the internet. As it stands for “commerce,” it’s widely associated with everything business-related. Naturally, over time, it has become synonymous with legitimacy and trustworthiness.

However, some users go further and distrust anything that’s not .com. They even default to .com when writing any URL. This deep-rooted familiarity and trust can hinder their transfer to a newer, industry-specific TLD.

Furthermore, your website can be plagued by the perception of lesser professionalism. In some conservative and high-risk industries, like finances, law, and medicine, using industry-specific TLDs is frowned upon. Even country-specific domains may seem problematic in these sectors, as most high-end brands in this field all have .com or .org extensions. Naturally, the target audience has a deeply rooted distrust of anything outside these two TLDs.

Pro: Availability Of Domain Names

Indeed, this is one of the biggest benefits of industry-specific TLDs. We’ve talked about brand identity and finding the right audience, but none of this could be possible if you were unable to find a proper, catchy, and brandable domain name. And trust us, with 338 Million companies and 500,000 brands worldwide, finding a unique and brandable domain name is pretty hard. Considering that more than 160 million websites use the .com extension, reserving a proper website with this TLD is practically impossible. That’s not the case with industry-specific TLDs.

One of the most significant benefits is the lack of complex modifications to make the brand name sound original. For example, if you want to name your brand modernfashion.com, you will see the domain name is already reserved. Yes, they are offering you to buy it, but the price won’t be something you will be very much interested in. On the other hand, modern.fashion is absolutely free to grab. This way, you will pay only the standard cost. Something more. You will have your brand name without needless complications like additional letters or numbers (i.e., modernfashion9 or modernfashionus). These modifications will significantly mess up your organic traffic, as customers constantly forget the extra symbols.

Con: Higher Cost

Now, when we talk about the genuine annual domain name cost, the industry-specific TLDs are slightly pricier. While the traditional TLDs go for about 10-20 USD annually, the industry-specific ones start at $30. The .tech extension, for example, ranges from 50 to 100 USD depending on several factors. The .store extension is slightly cheaper – between 30 and 70, as are .fashion and .boutique.

Among the more expensive and industry-specific TLDs are the .law TLD, costing between 100 and 200 dollars a year. The .ai, on the other hand, will cost you anywhere between 200 and 1,000 dollars.

Probably the most expensive one is the .app extension, which goes from 100 to 3,000 dollars. That’s why, for the latter, IT and tech start-ups usually use the ccTLD .io, which has become an unofficial TLD for everything tech-related.

Still, considering that you will have to pay thousands, if not more, for a proper domain name with a .com extension, investing in an industry-specific TLD sounds quite reasonable.

Pro: Enhanced Marketability

Considering all the pros we’ve mentioned so far, it’s easy to determine that industry-specific TLDs will enhance your marketing efforts significantly. The domain name alone is a marketing gold. You have the opportunity to have a one or two-word domain, something that hasn’t been available in the .com extension for years.

Furthermore, the extension alone can be a focal point in your marketing campaign. It’s distinctive, and it showcases precisely what you offer. For example, a brand security.tech will capture the attention of any user, regardless of whether they see it online or offline. It will stick out above all other websites in online searches, and it’s easily memorable if you have to mention it on different offline media (like the radio, for example). It’s the perfect tool for retargeting and an excellent asset for offline lead-generation strategies.

Furthermore, it’s an SEO goldmine. After all, if someone looks for security tech solutions online, they will most likely write “security tech.” If everything else on your website is excellent, your website will be on top of the organic results. It’s a perfect match with what the user is looking for, after all.

So, utilizing an industry-specific TLD will help you maximize your marketing potential in all its forms.

Con: Others may ruin the TLD for you

Industry-specific TLDs are a great way to avoid the crowded .com extension, but the latter has so many websites for a reason. This is the original commercial TLD, which has built trust for over three decades. On the other hand, industry-specific TLDs are relatively new and open the opportunity for counterfeiters and copycats to take advantage of a bigger brand. This can cause severe indirect harm to your business. If your industry-specific TLD becomes synonymous with scams and spammers, all your efforts will be for nothing.

The .xyz extension is the perfect example. Initially, it was conceived as a more creative alternative to the .com TLD. However, .xyz was quickly flooded by spam and scammer websites, ruining its reputation. Today, even reputable businesses with .xyz extensions suffer the consequences. Similar are the cases with .tk, .cc, and .top. Fraudulent websites overran all of them.

So, this is one risk that, unfortunately, you can’t really mitigate. All you can do is check if your industry-specific TLD has some measures against scammer and spammer websites.

Do You Need An Industry-Specific TLD?

As always, the answer is “it depends”. Indeed, several factors can help you determine whether an industry-specific TLD will suit your needs. For example, getting an industry-specific TLD is pointless if you already have a .com domain. The .com extension is still the most respectable. Still, you can reserve your brand name’s domain name with an industry-specific TLD to deter any malicious actors from using your brand name for scams.

On the other hand, if you are just entering the internet and looking for a trendy, catchy, and revealing domain name, industry-specific TLDs can give you vast options.

Regardless, before you get your domain name, you must secure the best hosting provider to supply you with the infrastructure to build your website. None of the benefits of having an industry-specific TLD will be available if you don’t have strong, fast, and secure hosting behind your website.

Luckily, HostArmada offers you the perfect solution. Thanks to our cloud-based technology, we can provide lightning-fast website loading speed, state-of-the-art security, and a 99.9% uptime guarantee. Check out our plans and choose the one that will best fit your needs.