Why Donuts is repricing many of its premium domains.
This week I talk with Matt Overman, the SVP of sales at Donuts, the company that offers 242 domains in new extensions such as .money and .expert. Matt explains why the company is reducing the price on over 1 million new top level domains that are marked as premium, including moving most of them to non-premium status. He also responds to some of Michael Berkens’ comments about new TLDs and gives examples of how some people are successfully using the domains.
Also: Slofies, Scratch.org settlement scratched, .Music fight, No more .Chrysler, and good news about a website held for ransom.
This week’s sponsor: NameSilo. Use coupon code DNWPod to save $1 on your next domain.
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@Matt- Some of us a few years ago did our best to help promote some of those new gTLD’s. We even made an effort and bought some at the Early access program at very high prices. Some of those names had also very high renewals.
It would be great if you could take down the prices of renewals on those names.
Those high prices deter potential buyers.
As you are aware it takes time to educate and explain the value of these names to those who do not know anything but .com.
So once one manages to convince a company to make a one time big payment and find the budget to it, it tends to fall on the high renewal price. They can manage to make the pitch internally for the one time price but its hard for them internally to convince them to continue paying high renewal rates. Its a tough sell. Had a few names fall due to that.
If they are already taking a chance on a new gTLD and paying for it a one time lump sum, they dont want a high renewal price. They say that .com and others dont have those prices.
Beyond that, having some more big ticket sales would help you guys too. So it should be in your interest to take down the renewal prices not just on new registrations but also on those of current owners too.
I’d say you have a steep learning curve ahead here Abe.
Registries have priced these so they don’t work well for domainers, no way are they going to reverse that. They’ll say nice things to you every day of the week (because you are the customer) but they are running their business and they aren’t going to make less so you can make more.
It doesn’t make sense for domainers to try and resell premium renewal names. You’ve already paid “enduser price” via high renewals, endusers aren’t then going to pay another premium on top of that via a high acquisition cost.
“As you are aware it takes time to educate and explain the value of these names to those who do not know anything but .com.”
Spending time doing that is absolutely pointless, you probably aren’t doing any “educating” even though you may think otherwise, just a sales pitch for extensions people don’t want to use.
Sorry, but am a little confused. Does the “price reduction” include the premium domains bought when the new TLD first came out a few years ago, or just the NEW registrations. Does that mean those who bought one of these “premium domains” for almost a thousand a few years ago, with price increases for the last three years, can expect additional increases? Sorry for the stupid question. Just a dumb newbie.
This is for new registrations, they aren’t going to reduce prices for existing registrations.
Yes existing registrants can expect more price increases, but that is what people signed up for with these tlds.
I think you are wrong. They have more integrity and real business understanding than you give them credit for.
They know who helped them and continue to help them during this journey that has not yet ended and promote non .com domains. I’m sure he will get back to us here.
@Matt- Still waiting for your response.