Comparing ccTLDs With gTLDs: What’s Best for Your Business?
As Shakespeare might have written if he lived in the internet age:
gTLDs or ccTLDs? That is the question.
You might be asking yourself the very same thing – especially if you’re launching a new website for your business – which means you need to know the differences between these domain extensions. After all, both can be good for a business. But one might be better than the other, depending on your situation. You need to know which if you’re going to have any chance of choosing the best domain name for your company.
What Is a gTLD?
gTLD stands for “Generic Top-Level Domain,” and it typically refers to one of three extensions:
- .com
- .org
- .net
In 2001, three more were added to that list – .info, .name, and .biz – with .pro rounding out the list in 2004. Each also has a specific use, such as .org only being available to non-profit organizations. The key with gTLDs lies in the term “generic” – outside of the standard uses, they offer minimal benefits to location-specific businesses.
What Is a ccTLD?
A ccTLD is a “Country Code Top-Level Domain,” and it essentially gives you a chance to assign a country to your website. There are literally hundreds of examples – each related to a specific country – such as .fr for France and .co.uk for the United Kingdom.
Interestingly, besides being country-specific, a ccTLD isn’t language-specific. For instance, you could register a .fr international domain but host an English-language website on that domain, if you so choose.
The Key Differences Between gTLDs and ccTLDs
One of the key differences has already been established in the above explanation – ccTLDs are country-specific whereas gTLDs are generic and can be used by anyone in any country.
But what are the differences besides that?
Difference 1 – Regulatory Differences
Due to their generic nature – as noted directly in the name – gTLDs can be registered by anybody regardless of their location. This is most commonly seen with the .com gTLD, which is essentially universal despite the fact that it’s commonly associated with web domains registered in the United States.
This isn’t to say that there are no registration challenges with gTLDs.
gTLDs are all governed by an organization called ICANN. Based in the United States, this group determines who can have a gTLD and – crucially – where an applicant is allowed to have a specific address.
Take the .org extension as an example. This extension is typically limited to not-for-profit organizations, such as charities. Similarly, the .edu domain is for educational institutions – such as universities and schools – and can’t be used by for-profit businesses. So, though there are no locational restrictions on gTLDs, there are registration challenges in terms of the type of organization for which you register.
With ccTLDs, you remove those business-related registrational challenges, only to replace them with logistical ones. Many – though not all – countries require you to maintain some sort of presence within the ccTLD’s country of origin before you can register a domain. That presence might be as simple as having a phone number or address registered in the country, but can extend to being able to provide appropriate business documentation.
Again, a domain registrar can come to the rescue here, as long as they offer something very specific:
A trustee service.
Through this service, the registrar acts as your representative within the country in which you want the domain. They register on your behalf and you get a domain you can use for your business.
Difference 2 – Local Business Benefits
There’s nothing stopping a local business – or a multinational company that wants to compete locally – from using a gTLD in terms of regulation. However, many find that registering a gTLD isn’t the best approach when it comes to search engine optimization. A country-specific search engine is more likely to rank websites that use ccTLDs relevant to that country than it is to rank a gTLD. Again, a .com – or similar gTLD – can still rank. But the owner usually has to break down their website into multiple languages and sections specific to different countries to achieve that ranking. That presents an SEO problem in itself. This division of the website could create navigational issues that make it harder for visitors to find what they want, which leads to higher bounce rates and lower rankings.
That isn’t a problem when you have a ccTLD because you’ll build a website dedicated to a specific location on that domain.
Furthermore, having a ccTLD raises your reputation within a country.
Going back to the Japan example, a co.jp address shows a Japanese consumer that you have a physical presence in their country, meaning they can trust your website. They don’t receive the same trust signals from gTLDs because anybody can register for them.
Through that trust comes the increased likelihood that the consumer will buy from your business. If you doubt that, consider this scenario:
Would you buy from a .com website that clearly sells products from a location that may be thousands of miles away compared to a site that is closer to home?
You likely wouldn’t because it’s tougher to research – and thus trust – the overseas company. You can’t get a solid bead on that company’s reputation, creating a trust problem that requires work on your behalf to overcome. It’s far easier to simply buy from an in-country supplier you know you can trust than to take a risk on an overseas company.
Difference 3 – Dispute Resolution
Disputes can occasionally occur over domain names, especially in cases involving cybersquatters buying domains to damage a company’s reputation. With gTLDs, ICANN has a special policy in place for resolving these disputes – the Uniform Dispute Resolution Policy (UDRP).
UDRP doesn’t apply to ccTLDs.
As each country creates regulations for assigning its ccTLDs, it must also decide how it’ll handle any disputes relating to those domains. This manifests in several ways. For instance, Japan places the power to handle domain disputes in the hands of courts based on the country’s Civil Procedures Code. Court proceedings start with a complaint – filed directly to the court – with the trial then going through the traditional processes of submitting briefs and evidence, along with orally presenting their arguments. Interestingly, there isn’t a discovery phase in trials related to domain disputes in Japan.
As you can see, you’ll need to understand the laws of your domain’s country of origin to ensure you have appropriate legal protection for your registered domain. Your domain registrar – the company that handles the nuts and bolts of registration on your behalf – can usually provide some guidance in this area.
Which Is Better for Your Business?
It all depends on what you want from your domain.
A ccTLD is the best choice if you want an international domain that signals to search engines – and consumers – that you’re based in a specific country. They’re also great choices for multinational businesses, which can buy relevant ccTLDs to build separate country-specific websites for their brand. Finally, you might also consider buying ccTLDs that you don’t intend to use simply to prevent others from buying them – a tactic often used by popular brands.
As for gTLDs, they’re fine for a business that takes a more “neutral” approach, specifically in terms of its location. They’ll also work well for multinationals that only operate in countries that speak the same language, such as businesses that sell to customers in the U.S., U.K., and Canada.