The next round of applications for new generic Top-Level Domains (gTLDs) is expected to open for applications in April 2026. For about 12 to 15 weeks, businesses and communities will be able to apply for new domain extensions that reflect their industries, missions, culture, or language.
This can be a major branding opportunity for an organization, but is it worth it? Creating a new TLD can be a complex, costly, and highly-regulated process. If an application is approved, how can your organization manage and secure your new TLD registry? With ICANN’s application period fast approaching, many organizations may be weighing the pros and cons of creating a TLD of their own.
What are TLDs?
A Top-Level Domain (TLD) is the final segment of a domain name, located to the right of the last dot. It represents the highest level in the hierarchical Domain Name System (DNS) of the internet. Familiar examples include .com, .net, and .org.
TLDs are categorized into a few main types:
- Generic Top-Level Domains (gTLDs): These are the most common types and were initially intended for specific purposes, such as .com for commercial entities and .org for organizations. Over time, many of these restrictions have been relaxed. The landscape has expanded significantly to include hundreds of new gTLDs like .app, .shop, and .tech. As of late 2024, there are 1,591 different domain extensions on the internet, showcasing a dramatic diversification.
- Country Code Top-Level Domains (ccTLDs): These are two-letter domains reserved for a specific country or territory, such as .us for the United States, .ca for Canada, or .uk for the United Kingdom. Despite their geographical designation, many ccTLDs are used globally for creative branding. Their adoption is significant; in 2023, nearly 40% of all domains included country-specific extensions.
- Sponsored Top-Level Domains (sTLDs): These are specialized TLDs sponsored by a private agency or organization that establishes and enforces rules restricting eligibility for registration. Examples include .gov (for the U.S. government) and .edu (for educational institutions).
The structure and governance of the internet’s naming system is primarily overseen by a single organization: the Internet Corporation for Assigned Names and Numbers (ICANN).
Advantages of having your own top-level domain
Pursuing a custom TLD is a massive strategic investment, and the potential rewards can be transformative for an organization. The benefits extend far beyond a simple marketing gimmick, offering fundamental advantages in digital control, branding, and credibility.
Control and Flexibility
Owning a TLD means you become the registry, not just a registrant. This transition grants an unparalleled level of control over your digital ecosystem. You can create your own naming conventions, structure domains for different departments (for example: marketing.brand, support.brand), or offer subdomains to partners and customers.
This control extends to security and policy; you set the rules for who can register domains within your TLD, how they can be used, and what security protocols are mandatory. This allows for the creation of a trusted, curated, and secure namespace that is entirely under your governance, free from the policy shifts of external registrars.
SEO and Credibility
A custom TLD is a powerful branding tool that immediately signals authority and authenticity. For consumers, a domain like www.offers.bmw is inherently more trustworthy than a convoluted subdomain or a different TLD.
This brand consistency strengthens user trust and can reduce the risk of phishing and cybersquatting. From an SEO perspective, while search engines do not inherently favor new gTLDs, a branded TLD allows for the creation of short, memorable, and highly relevant URLs.
For example, a URL like car-configurator.audi is cleaner and more descriptive than audi.com/en/models/car-configurator, which can contribute to a better user experience and potentially higher click-through rates from search results. It establishes your brand not just as a participant on the web, but as a part of its very architecture.
What Is The Process of Creating a New TLD?
The official path to creating a globally recognized gTLD is through the ICANN New gTLD Program. This initiative was designed to expand the internet’s naming system, but it is a structured and demanding process. ICANN’s role is to ensure the stable and secure operation of the internet’s identifier systems, and its application process reflects this responsibility.
The program doesn’t happen frequently. It operates in rounds that are announced ahead of time, with the first major round concluding in 2012. ICANN periodically opens application windows for new gTLDs, during which interested parties can submit their proposals.
The process itself is complex: an exhaustive evaluation of an applicant’s technical, operational, and financial capabilities to run a TLD registry.
What Is The Process of Applying for a Custom TLD?
ICANN’s application process is a multi-stage marathon that requires extensive planning and significant resources. It can be broken down into several key phases, each with its own set of challenges and requirements.
Cost Evaluation
The cost of registration is the first barrier to entry for hopeful applicants. The application fee alone is substantial; for the next round, ICANN has indicated the base fee will be $227,000. This is just the starting point: as noted by industry experts, the real cost of applying for and launching a new gTLD can easily surpass half a million dollars. This figure accounts for legal counsel, consulting fees to help prepare the extensive application, marketing, and the technical infrastructure required to operate the registry. Furthermore, there are ongoing fees, including quarterly payments to ICANN and per-domain transaction fees, which must be factored into the long-term business model.
Application Preparation
The application itself is a comprehensive document that can run hundreds of pages. Applicants must provide detailed answers to approximately 50 questions, covering three main areas:
- Technical and Operational Capability: You must demonstrate that you have a robust, scalable, and secure plan for operating the TLD registry. This includes details on your DNS infrastructure, data escrow services, security protocols like DNSSEC, and partnerships with technical backend providers.
- Financial Capability: Applicants must prove they have the financial resources to operate the TLD for a minimum of three years, even with no registration revenue. This requires detailed financial statements and business plans.
- Policy and Legal Framework: The application must outline the proposed rules for the TLD, including registration policies, dispute resolution mechanisms (like the Uniform Rapid Suspension system), and measures to protect intellectual property rights.
Application Submission
Once prepared, the application is submitted during a designated window of time. This is often a competitive process. In the 2012 round, ICANN received 1,930 applications, leading to contention in cases where multiple applicants were vying for the same TLD. In such cases, the matter is resolved through community evaluation or, if all else fails, a financial auction. The application then undergoes a rigorous evaluation by ICANN, which includes checks for similarity to existing TLDs, potential for public confusion, and overall compliance with the program’s requirements.
Delegation and Activation
If the application is approved, the final phase involves signing a Registry Agreement with ICANN, a legally binding contract that outlines the operator’s rights and responsibilities. Following this, the applicant undergoes technical testing to ensure their systems are ready to be integrated into the internet’s infrastructure. The final step is “delegation,” where the new TLD is officially added to the DNS Root Zone, making it live and accessible across the global internet. From this point forward, the applicant is the official registry operator for their TLD.
This comes with significant responsibilities, including maintaining the registry, including managing infrastructure, legal issues, providing regular reports to ICANN and safeguarding critical DNS functions.
Best Practices for Creating a Custom TLD
Successfully launching a TLD goes beyond navigating the ICANN application. It requires a long-term strategic vision and a clear understanding of the responsibilities involved.
- First, define a clear purpose. A TLD should not be a vanity project; it must serve a strategic business goal. Is it to create a secure ecosystem for your products? To build a branded community for your users? To establish a new industry standard? A strong business case is essential for justifying the investment and guiding the TLD’s policies and growth.
- Second, be realistic about the operational commitment. Operating a registry is a 24/7/365 responsibility. It involves managing technical infrastructure, handling compliance and legal issues, marketing the TLD to potential registrants, and providing customer support. It’s a business in itself, not a side project. This reality may be why, according to a 2024 CENTR report, a staggering 73% of gTLDs are either parked or do not resolve, suggesting many are acquired for defensive purposes rather than active use.
- Finally, consider the alternatives. For most businesses, the complexity and cost of the ICANN route are prohibitive. Before committing, explore other options. Creative use of existing gTLDs or ccTLDs can provide strong branding. Furthermore, the rise of Web3 and decentralized domain systems offers a new, more accessible frontier for creating custom digital identities, albeit one that does not yet have the universal recognition of the traditional DNS.
Is it worth it to create your own TLD? The answer is different for every prospective applicant. It will take a thorough cost-benefit analysis to determine whether an ICANN-approved TLD, its cost, and its responsibilities are right for your organization.
Take Control of Your TLD Strategy with Vercara
Your domain extension shapes how customers find you online. As such, choosing the right TLD is a critically important business move.
Vercara offers solutions for registry operators that keep their TLDs compliant and secure. UltraDNSTLD and UltraDNSTLD² deliver the foundation businesses need for reliability, security, and scale. We offer high availability, ensuring domains stay online, global DNS performance that provides fast resolution anywhere, advanced security controls that defend against threats like DDoS and cache poisoning, and scalable infrastructure that supports future growth. Together, these capabilities make UltraDNSTLD and UltraDNSTLD² the strategic choice for organizations that view domain management as a critical part of digital trust.
You handle the application, we’ll handle the DNS. Contact us today to learn more and schedule a demo.
