Tess Diaz on Web3 and the Internet's Future
In this edition of the discussion around domain investing, Beba, Community Manager at Freename, had an opportunity to sit down with Tess Diaz, an enterprise domain name management consultant. Tess has worked at companies like GoDaddy and Media Options and holds over 18 years of experience.
She shares her views on Web3 and how it will share the internet’s future.
People Still Don’t Perceive the True Value of Domains
As someone working in enterprise domain name management, Tess can confirm that not everyone understands the value of domain names. There’s a knowledge gap between investors and buyers. Thus, at times, it’s hard to convey the value of the domains that are available to prospective buyers.
People, especially in development, think domain means the website. So those involved in the domain industry need to better convey that domain names are your online identity and not just words affixed with .com or .net. Bob Parsons, the founder of GoDaddy, said, “Domain name is your ticket to a baseball park”. And that mindset made GoDaddy the industry leader.
A Vision of How a Domain Will Grow is Important
The reason why someone buys a brand new domain for a million dollars is the vision they have for that domain. They may see the domain’s popularity a few years later. Or they may be building a brand around it. Ultimately, it’s this vision that matters.
As a domain broker or investor, you need to sell this vision to others. Tess believes that is the most important aspect when it comes to selling domains.
Adapting is Key to Success
“Adapting to changes” is general business advice, and it applies to Web3 as well.
GoDaddy became a market leader by adapting to threats, opportunities, and changing regulatory environments. And that’ll be the key for any domain investor or Web3 domain registrar.
Web3, currently in its nascent stages, will continue to evolve rapidly. There will be technological innovation and interference from the regulators. To succeed, you must keep pace.
Attending conferences, joining focused groups, and having meetings with influential people is one way to anticipate the coming changes. Then, you are in a much better position to respond to those changes.
TLDs will Grow in Importance in Web3
In Web2, TLDs matter a lot. The .com TLD leads the pack, followed by .net, .org, .io and so on.
In Web3, the importance of TLDs is going to surge. Registrars will come up with new and exciting TLDs, and some will reach the heights of .com TLD.
But another factor that will come into the picture is memorability. How well a TLD suits an SLD will determine the final price. One SLD may sound perfect with a particular (me.me, for example) TLD, but not with another (me.sx, for example).
Web3 Presents an Opportunity to Get in Early
Web2 minted several millionaires in the domain name industry. These professionals (or average Joes) saw the potential early, leveraged it, and became successful.
Web3 is at a similar tipping point. Those who get in early and get it right will reap huge dividends. Tess Diaz believes the most important thing is to educate yourself and take risks.
Certain Segments will Peak Sooner Than Others
While Web3 will eventually impact every segment, not every segment will peak simultaneously. Some are trailblazers, and some are laggards.
There are segments like gaming that are seeing wide adoption. We are seeing influencers promoting certain brands and offering incentives for trying the services out. So there lie better opportunities.
There Will Be Legal Challenges
In Web3, investors and companies will have to grapple with legal obstacles. There are certain areas that aren’t regulated and are in the grey area. There are no copyright infringement and trademark violation guidelines in Web3 domaining yet. Nor is the crypto market that much regulated. Thus, expect legal challenges along the way.
Navigating Web3’s Domain Landscape with Tess Diaz
Tess’s emphasis on the importance of conveying a vision for domain growth resonated deeply. Her belief in the power of adaptation and anticipation of changes within the industry offered invaluable advice for aspiring domain investors and registrars navigating the Web3 landscape.
It was truly delightful to delve into Tess’s perspectives on the future of Web3 and its profound impact on the internet landscape. Her articulate insights shed light on the evolving domain industry and the pivotal role domain names play in shaping online identities.