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M+M makes $3.2 million in five days from .vip

Kevin Murphy, May 23, 2016, 07:41:52 (UTC), Domain Registries

Minds + Machines has billed $3.2 million in .vip domain names sales after the first five days of operation, the company said this morning.

It’s already managed to pay off the cost of acquiring the domain at the September 2014 auction, which was $3.1 million.

Between 1600 UTC May 17, when .vip went to general availability, and the same time May 22, the gTLD racked up 203,720 domains, the company said.

The $3.2 million is a “billings” number, which will convert to accounting revenue over the lifetime of the domains.

For comparison, billings in the whole of 2015 was $7.9 million.

M+M now has over half a million domains under management, a 64% increase from the start of the year, the company said.

Registrations from China, where presumably owning a .vip name does not make you look like a douchebag, accounted for over 80% of the registrations. Almost half of its registrars are Chinese.

Major Chinese registrars are currently selling .vip names for CNY 25-26 (about $4) apiece.

The discrepancy between that low price and the $3.2 million (which implies an average wholesale price of about $16) is due to the effects of premiums, sunrise and multi-year registrations, CEO Toby Hall told DI.

M+M, like the vast majority of TLD registries, is not currently licensed in China, so these names will not legally be allowed to be developed into sites until the company has gone through the full governmental approval process.

Hall said in a press release:

The Chinese market for top-level domains is real and we are delighted to have accessed this key region through the .vip launch… It is a major milestone for the Company, the new management team and our business model centred on working with best-in-class partners across every aspect of our business so as to best monetize our assets while maintaining a tight control on central overheads. It demonstrates that, when properly executed, how quickly the initial investment costs for a domain can be recovered and the potential for a strong recurring revenue established. The .vip launch equally illustrates how as a b2b business we do not have to burn funds on marketing to reach end-consumers and achieve outstanding results.

He’s referring there primarily to M+M’s ongoing restructuring, which has seen the company ditch its registrar business in favor of a more heavily channel-focused approach.

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