Marketing programs help .com get top billing, but other registrars can play this game too.
New top level domain names represent a growth opportunity for domain name registrars, many of which have seen domain registrations plateauing over the past year.
That’s why 1&1 spent $50 million promoting new top level domain pre-registrations and other registrars have prominently featured new TLDs on their home pages.
Over the past week or two I’ve noticed something interesting, though. Verisign’s .com and .net domains have been pushed heavily on registrar websites, often usurping promotions for new TLDs.
Consider 1&1, which has gone all in on new TLDs:
99 cents .com and .net domains are front and center. There’s a promotion for .email, but there’s no longer a general promotion for new TLD pre-registrations anywhere near the top of the page (not even on the slider).
And here’s GoDaddy’s home page today:
.Com, .net, .org, and .co are all featured. .Club is also on there a little bit below.
This sort of promotion isn’t free.
Sure, .com is typically going to be featured high up on a registrar page. But Verisign also kicks in bonuses for registrars to market .com domain names.
This is nothing new — it’s been going on for years prior to the launch of new TLDs, and it’s not limited to Verisign. Yet it sure seems like Verisign’s placement is improving lately.
A common program will offer rebates to registrars if they grow their .com/.net registration numbers. They can also earn marketing dollars for marketing campaigns targeting new and existing customers, which is what a lot of the on-site promotion is about.
Registrars get additional bonuses if they include “Powered by Verisign” when they show .com and .net (notice the inclusion on the 1&1 home page). At least one of the marketing programs requires .com and .net to be within the top three in the search results or drop down box, at least for people visiting the site from the campaign Verisign is backing.
Verisign will also chip in to broader marketing initiatives. That’s why I saw this ad during a Major League Baseball broadcast last year:
Whereas before that ad would have just said GoDaddy.com, this time the .Com is separated and includes a “Powered by Verisign” logo.
Verisign’s fat wallet and the popularity of its TLDs give it a leg up on getting its domains pushed at registrars. But this sort of opportunity is open to all.
.Co has been heavily featured on GoDaddy.com for years, and famously appeared in three of GoDaddy’s Super Bowl commercials.
.Club apparently understands the value of this, too.
Registrars will promote whatever makes them the most money. These promotion kickbacks rebates and marketing programs merely change the equation for what makes a registrar the most money.
This idea isn’t an invention of the domain industry. Registrars are retailers and retailers have long played this game. How do you think those Cheetos got selected for the end cap at the grocery store?
Domo Sapiens says
“1&1 spent $50 million”
Expensive smoke and mirrors (literally…Banned in the UK) …. that resulted in pathetic results.
Andrew do you have the zone files? they go hand in hand with this post….
Robbie says
After a few weeks of gtld chasing nightmares, I feel they are a niche market that will have a smaller appeal than most think as .com will continue to refusing strong. To much regulation, premium pricing, and fine print. Along with trademark gaming, and other nonsense, I just can’t see them catching fire so to speak. We know speculators will throw fuel on any fire, enough dreamers out there to make that happen. Good luck finding any non ambiguous term which hasn’t been deemed premium 2 months in via dough nuts…
Well the other companies are coming online soon, so confusion, and non premium pricing should be evident in the marketplace. I have played, but now as I look over my credit card statement, I have buyers remorse. I should have focused efforts on .com, which a few might have already flipped thru. This business reminds me to much of the insurance biz and it is very one sided. Just my opinion, I am sure everyone has their own story. Good luck, I had a end user ask about a 2 word .com which ended in solutions last week. Instead of getting .solutions, they went and got the hyphenated .com, and now want to acquire mom hyphenated from us. I actually went, and registered .solutions myself, and offered it to them as an experiment for $100, they passed and said they were happy with .com. So I realize I will have to spend thousands on premium renewals before I can even imagine breaking even of gtlds catch on with end users. Risk outweighs reward.
BT says
I totally see this as a long-term race. How much will the incumbents have to discount? How many new strings will come? How much innovation will the new strings bring along over the years. And then one viral video too many on a new string and the tide starts to turn. Today people will buy the new names only because better sounding options are available. Tomorrow it will be because of the innovation new extensions bring. I think they are a winner in the long run but over the next three years there will be no shortage of grave-dancers writing new extensions off.
John says
Did the .INFO extension ever go anywhere? Not really. All these new TLDs are just like more .INFOs, only worse because they’re longer.