Domain Name Wire

Domain Name Wire

Displaying posts tagged under "new tlds"

  • How you can (and can’t) justify recent Top Level Domain auction prices

    1. BY - Oct 23, 2014
    2. Domain Sales
    3. 4 Comments

    In this post, DOT TBA founder Christa Taylor considers the payback period for new TLDs based on recent auction prices and current registration volumes.

    The October 22nd ICANN new top level domain name auction resulted in the resolution of several TLDs selling for substantial amounts of money:

    • .Realty $5.6 million
    • .Salon $5.1 million
    • .Spot $2.2 million.

    These results, along with the September 17th auction results of .buy at $4.6 million, .tech at $6.8 million and .vip at $3 million, reflect the substantial amount of funds and expected value of the new gTLDs. Justifying auction values that integrate into an existing business (such as Amazon winning .buy) may be easier to justify than a TLD solely in the business of selling domain names.

    With over 200 new gTLDs now in the marketplace and the anniversary of the introduction of new gTLDs quickly approaching, preliminary insight into registration volumes, pricing and auction values is easily attained. Click here to continue reading…

  • buys .spot domain name for $2.2 million, .Realty sells for $5.6 million

    1. BY - Oct 22, 2014
    2. Uncategorized
    3. 7 Comments

    Amazon wins another new top level domain, but it was out shadowed by more expensive auctions.

    The latest round of new top level domain name “auctions of last resort” at ICANN took place today.

    Three auctions for the rights to run top level domain names closed for prices ranging from $2.2 million to $5.6 million: won .spot for $2,200,000, beating applicants Google and Dotspot, LLC.

    Fegistry won .realty for $5,588,888, beating Donuts. Fegistry is Jay Westerdal’s company. I’m surprised the two companies didn’t settle this privately. Both companies are in Seattle and I saw a photo of Donuts CEO Paul Stahura hanging out at Westerdal’s house this summer. I assume Westerdal was the hold out that didn’t want a private auction since Donuts has participated in many.

    Donuts won .Salon for $5,100,575, beating L’Oreal, DaySmart Software (software for spas and salons) and Aesthetics Practitioners Advisory Network (Australian trade group for aesthetic and beauty industry)

    In last month’s auction, the top sale was .tech for $6,760,000. Amazon bought .buy in that auction for $4,588,888.

  • ICANN slashes new TLD forecast, but is it enough?

    1. BY - Oct 21, 2014
    2. Domain Registrars
    3. 16 Comments

    ICANN is forecasting 15 million new TLD registrations during the current fiscal year.

    ICANN forecastICANN has slashed the number of new top level domain name registrations it expects during this fiscal year for budgeting purposes, but is its picture still too rosy?

    That’s a question that members of the Registrar Stakeholders group asked ICANN’s board last week in Los Angeles.

    In May, ICANN set a draft proposed budget for the 2015 fiscal year, which runs from this July to June 2015. Its revenue forecast from new top level domain names included a startling number of second level registrations under new TLDs: 33 million.

    It has since revised the forecast down 55% to just 15 million.

    Given results so far, it hardly seems likely that 15 million new domains will be registered in new TLDs before next summer — even if you include registrations occurring before the fiscal year began. There are currently about 2.8 million registrations.

    Domain registrars are concerned that they’ll get stuck holding the bag if revenue comes in below target.

    New TLD registries pay ICANN a fixed fee of $6,500 per quarter ($25,000 per year). If they have more than 50,000 “transactions” in a year, they pay 25 cents per domain. Transactions are actually domain-years, not registrations, but ICANN’s budget refers to a number of domains registered as an assumption in its forecast. I’m not sure how ICANN calculates this in the budget; they must be assuming a certain number of TLDs cross this threshold.

    Should domain registrations come in below forecast, then ICANN will have a revenue shortfall. The easiest place to make that up, the registrars fear, is by increasing the variable registrar fee on domain name registrations. That’s the 18 cent “ICANN Tax” you usually see passed on to the customer.

    ICANN’s latest FY2015 budget cites the number of new TLD registrations as a risk factor. In fact, it mentions the risk of a “lower number of transactions per registry” as “high”, and lists the likelihood of a “higher number of transactions per registry” as low.

    It certainly seems that ICANN should be planning for a lot fewer registrations than are in its budget.

  • ICANN struggles to beat echo chamber after .Gay decision

    1. BY - Oct 21, 2014
    2. Policy & Law
    3. 23 Comments

    Many responses to .gay community application decision are oversimplifying what happened…and getting it wrong.

    In headlines and tweets, it’s pretty easy to knock ICANN for a recent decision not granting .gay applicant dotgay llc community status for the domain name.

    Click to continue reading…

  • 2 character domains get green light under new TLDs

    1. BY - Oct 20, 2014
    2. Policy & Law
    3. 3 Comments

    ICANN Board approves resolution paving way for two character second level domains.

    Last week’s ICANN meeting started with good news for new top level domain name applicants: governments said they weren’t concerned about two letter second level domain names under new top level domain names.

    It got better as the week went on, with the Governmental Advisory Committee formalizing its position on two character domain names and then ICANN’s board approving a resolution stating:

    Resolved (2014.10.16.14), the proposed registry service for the release of two-character domains in the gTLD namespace does not create a reasonable risk of a meaningful adverse effect on security and stability, and the Board authorizes the President and CEO, or his designee(s), to develop and implement an efficient procedure for the release of two-character domains currently required to be reserved in the New gTLD Registry Agreement, taking into account the GAC’s advice in the Los Angeles Communiqué.

    New top level domain name contracts currently have a blanket restriction on two character second level domain names. A number of registries have requested that this provision be removed.

    This is good news for domain name registries from a usage standpoint. The change will allow .wiki, for example, to go forward with a planned arrangement with Wikimedia Foundation.

    It probably won’t mean much from a revenue standpoint, though. Due to the massive supply of new top level domain names, even “rare” one character second level domain names don’t seem to be fetching much in the market.

    Two character domains will also help brands set up regional second level domains. However, there is still a restriction on using country and territory names at the second level.