Latest news of the domain name industry

Recent Posts

MMX probing accounting of mystery contract

Kevin Murphy, October 12, 2020, Domain Registries

New gTLD registry MMX says it’s looking into whether it incorrectly accounted for about $1 million of revenue last year.

The company told investors Friday that $938,000 of revenue from a single contract was recognized in 2019, but there’s a possibility it should have been classified as “a refundable deposit against future sales or deferred revenue”.

The same goes for $25,000 recognized in the first half of this year.

The contract generated cash of $1.125 million in 2019.

Regular domain sales are usually recognized over the course of the registration and show up on the balance sheet as deferred revenue.

It’s not known which contract MMX is referring to in its notice. I’m tempted to wonder whether it relates to AdultBlock, the defensive registration service available across the company’s four porn-themed gTLDs.

The company had previously reported $1.1 million in revenue (rather than cash) from the sale of 2,000 AdultBlock regs for 2019, which puts it in the right ball-park, but it seems unlikely that so many domains would be blocked under a single contract.

MMX said the worst that could happen is that it would be on the hook for $1 million if it turned out the cash was refundable, adding that it had $7.3 million in the bank at the end of June.

Its share price took a battering anyway, losing almost a fifth of its value on Friday.

.eu registry contract up for grabs

Kevin Murphy, October 8, 2020, Domain Registries

The European Commission has opened up the .eu registry contract for rebid.

It’s a five-year contract that will come into effect in October 2022. Registries have to apply before the end of the year, and the Commission expects to make its pick in October 2021.

The incumbent is of course EURid, which has been running the ccTLD for the last 15 years and surely has a strong chance of renewing.

There are a few restrictions of which companies can apply.

First, they must be based in the EU or the UK. The registry infrastructure must also be located in the EU.

Second, they must be a not-for-profit entity. For-profit companies would have to set up a separate non-profit registry vehicle in order to be able to apply. All surplus revenue goes into the EU budget.

Third, they need at least seven years of experience running a registry — .eu currently has over 3.6 million names under management, making it the 13th or 14th largest TLD that I have numbers for.

There are a variety of technical and financial criteria applicants will be measured against, and a scoring system for picking a winner.

All the application forms can be found over here.

EURid suspends and delays thousands of coronavirus domains

Kevin Murphy, October 8, 2020, Domain Registries

Thousands of .eu domains containing words related to the coronavirus pandemic have either been suspended or frozen due to suspicions the registrants may have been up to no good, EURid reported this week.

The company started scanning new and recent registrations for these keywords at the start of April.

It found 3,489 such domains registered in the first quarter, and it suspended 1,709 of them because the registrant failed to verify their identity and confirm that the registration was made in good faith.

From April to the end of September, 4,656 domains triggered the system and were delayed from going live until EURid carried out its checks. Only a quarter of these names have so far passed the checks, EURid said.

While there are many legit sites providing pandemic-related information, the high-profile disease has also attracted many fraudsters.

.jobs plans to raise millions from premium names after dumping its sponsor

Kevin Murphy, October 6, 2020, Domain Registries

Third time lucky for .jobs?

Having had its first two business models fail, Employ Media has appealed to ICANN to scrap the cumbersome restrictions that have dogged .jobs for 15 years and allow it to raise potentially millions by auctioning off premium domains.

.jobs is one of a handful of “sponsored” gTLDs applied for in the 2003 round, but now it wants to dump its sponsor and substantially liberalize its eligibility policies.

.jobs has been sponsored by the Society for Human Resource Management since its approval by ICANN back in 2005, but Employ Media wants a divorce.

It’s also asking ICANN to promise not to fire barrages of lawyers at it if (or, more likely, when) it attempts to auction off tens of thousands of premium .jobs domains, some of which are currently carrying six-figure asking prices.

The gTLD was one of a handful approved in the 2003 “Sponsored TLD” round, an experimental early effort to introduce top-level competition, which also produced TLDs including .xxx, .asia, .cat and .mobi.

.jobs was originally restricted in two primary ways: only card-carrying HR professionals could register names, and they could only register the name of the company they worked for.

As you might imagine, the domains didn’t exactly fly off the shelves. By January 2010 fewer than 8,000 names had been registered, while the likes of .mobi — also “sponsored”, but far less restricted — were approaching one million.

So Employ Media took a gamble, creating what it called Universe.jobs. It registered about 40,000 domains representing professions like nursing.jobs and geographic terms like newyork.jobs, and populated the sites with job listings provided in partnership with the non-profit DirectEmployers Association.

As I reported extensively in DI’s early days, ICANN saw this as a breach of its Registry Agreement and threatened to terminate the contract. But Employ Media fought back, and ICANN eventually retreated, allowing Universe.jobs to go ahead.

I’ve thought so little about .jobs in the last eight years that I didn’t notice that Universe.jobs had also crumbled until today.

It seems DirectEmployees terminated the deal in 2018 after the registry refused to give it a bigger slice of revenue, then launched a competing for-profit service called Recruit Rooster, stranding Employ Media without a key revenue stream.

The registry sued (pdf) last year, accusing DirectEmployers of stealing its clients in violation of their agreement. While DirectEmployers denied the claims (pdf), the lawsuit was nevertheless settled last November, according to court documents.

That didn’t solve the problem of Employ Media not having a strong business model any more, of course.

So the company wrote to ICANN back in April to ask for changes to its Registry Agreement, enabling it to split from SHRM after 15 years of nominal oversight and create its own “independent” HR Council to oversee .jobs policy.

The Council would be made up of HR professionals not employed by Employ Media and would make seemingly non-binding “recommendations” about registry policy.

The proposed changes also reduce registrant eligibility to what looks like a box-checking exercise, as well as permitting Employ Media to sell off “noncompanyname” domains at auction or for premium fees.

Under the current contract, you can only register a .jobs domain if you’re a salaried HR professional and are certified by the Human Resource Certification Institute.

If the proposed changes are approved by ICANN, which seems very likely given ICANN’s history of pushing through contract amendments, the new rule will be:

Persons engaged in human resource management practices that are supportive of a code of ethics that fosters an environment of trust, ethical behavior, integrity, and excellence (as exemplified in the current Society for Human Resource Management (“SHRM”) Code of Ethical and Professional Standards in Human Resource Management or other similar codes) each, a “Qualified Applicant” may request registration of second-level domains within the TLD.

Sounds rather like something that could easily be buried in the Ts&Cs or dealt with with a simple check-box at the checkout.

The proposed new contract further guts the restricted nature of the TLD and removes the ability of the new sponsor (essentially the registry itself) to increase eligibility requirements in future.

Another amendment not flagged up prominently by ICANN on its public comment page specifically permits the registry to launch a “Phased Allocation Program” for generic second-level names, what it calls “noncompanyname” domains:

Registry Operator may elect to allocate the domain names via the following processes: 1) Request for Proposals (RFP) to invite interested parties to propose specific plans for registration, use and promotion of domains that are not their company name; 2) By auction that offers domains not allocated through the RFP process; and 3) A first-come, first-served real-time release of any domains not registered through the RFP or auction processes. Registry Operator reserves the right to not allocate any of such names. The domain names included within the scope of the Phased Allocation Program shall be limited to noncompanyname.TLD domain names, not including all reserved names as identified in Specification 5 of this Agreement.

Basically, Employ Media plans to sell off the tens of thousands of Universe.jobs domains it still has registered to itself, potentially raising millions in the process. One and two-character domains will also be released, subject to ICANN rules.

Many of these domains, even universe.jobs itself, seem to have make-an-offer landing pages already, with suggested prices such as $500,000 for hotel.jobs and $750,000 for us.jobs.

Bizarrely, these landers have a logo branding .jobs as “a legacy TLD”, a slogan I imagine is meaningless to almost anyone outside the domain industry and not particularly evocative or sexy.

The sum of all this is that .jobs is arguably on the verge of becoming a sponsored TLD in name only, with the potential for a big windfall for the registry.

Oh, and it’s all up for public comment before ICANN gives final approval to the contract changes. Comments close November 16.

Will anyone begrudge the company a chance at success, after 15 years of being handcuffed by its own policies?

I can imagine Donuts may have a view, operating as it does the competing .careers, which currently has fewer than 8,000 regs and is almost certainly the weaker string.

MMX revenue down even as sales rise during pandemic

Kevin Murphy, September 30, 2020, Domain Registries

New gTLD registry MMX saw its revenue dip in the first half of the year, even as the number of domain names it sold increased.

The company today reported a net profit after tax of $1.2 million, down from $1.7 million a year ago, on revenue that was down 5% at $8.5 million.

But billings were up in the quarter were up 7%, with channel billings (ie, domains sold via third-party registrars) up 20%.

Billings is the measure of how much the company sold, which is largely deferred and recognized as revenue over the period of the registration.

Domains under management across the registry’s portfolio of 31 gTLDs increased 31% to 2.38 million.

The company blamed a lack of brokered premium sales for the top-line decline, saying that segment contributed $0.1 million in the half, compared to $0.8 million a year ago.

MMX said registrar partner sales were “unimpacted by COVID”, up 4% to $8.3 million, but two of its brand-protection partners had to delay the launch of its pricey AdultBlock porn domain blocks until Q4, so there was no revenue to be found in defensives in the half.

Could .cpa be the most successful new gTLD sunrise yet?

Kevin Murphy, September 25, 2020, Domain Registries

The registry for the new .cpa gTLD reckons it has received “thousands” of applications for domains during its current launch period, potentially making it the most successful gTLD sunrise since 2012.

The American Institute of Certified Public Accountants, which manages the TLD, said today:

Well over half of the 100 biggest U.S. firms — as well as an equally large percentage of the next 400 — have begun advancing their applications as part of the early phase of the .cpa registration process, which launched on Sept. 1.

Assuming “thousands” means at least 2,000, this would make .cpa a top three or four sunrise, judging by figures collected by ICANN showing Google’s .app the current volume leader at 2,908.

But we can’t assume that all the .cpa domains boasted of are trademark-verified sunrise period applications under ICANN’s rules.

AICPA is running a simultaneous Limited Registration Period during which any CPA firm can apply for domains that are “most consistent with their current digital branding” — ie, no trademark required.

Both of these periods end October 31, after which the registry will dole out domains in a batch, presumably giving preference to the sunrise applicants.

We have to assume the amount of purely defensive registrations will be relatively low, due to AICPA’s policies.

Not only are registrants limited to licensed CPA companies and individuals, but registrants have to commit to redirect their .cpa domain to their existing web site within a month and deploy a full web site within a year.

.cpa domains sell for $225 a year, according to the registry. General availability is scheduled for January 15.

Three-letter .blog domains priced up to $100k

Kevin Murphy, September 25, 2020, Domain Registries

Knock Knock Whois There, the .blog registry, said it is going to release its inventory of three-character domains next month.

Roughly 47,000 names will be released at premium fees, with prices ranging “from a few hundred dollars to over $100K”, the company said.

That number suggests that pretty much all of the alphanumeric combinations and hyphenated L-L, N-N, L-N and N-L variants will be available.

The premium pricing only applies to year one; the names will renew at the standard rate of between $10 and $30.

The names will be released October 7 on a first-come, first-served basis.

.blog is doing pretty well by new gTLD standards, with over 190,000 registered names.

Nominet shuts down “hostile” discussion forum

Kevin Murphy, September 23, 2020, Domain Registries

Nominet has angered members by unilaterally shutting down a discussion forum that has been for many years the main place for discussions about .uk policy.

The forum, which Nominet hosted on its web site, went dark abruptly during the company’s annual general meeting yesterday.

Speaking to members tuning in to the live webcast, CEO Russell Haworth said that the forum was “dominated by a handful of posters, and has increasingly become aggressive and hostile, not least towards our staff”.

And then it was gone.

Haworth said he expected criticism over the move, which was “fine”, adding that posters have plenty of other venues to air their grievances.

He also suggested periodic Zoom calls to communicate with members.

The decision to close the forum is being greeted poorly by affected members (presumably the ones who most actively used it) on social media and seen as a way for power to be further consolidated among Nominet’s biggest revenue-generators.

Nominet recently came in for criticism for its efforts to grab a slice of the drop-catching pie by charging registrars an extra £600 a year (now, members note, up to £1,000) for additional EPP tunnels.

It also recently admitted privately to members that it last year miscalculated how many votes members they should get in directorship elections, but insisted the error did not have an effect on the outcome of the most recent poll.

The move is not entirely without precedent. Those of you with as many grey hairs as me may recall the old Domain-Policy mailing list, once the central hub for community discussions, going dark back in 2001.

But Verisign, which hosted the list and its archives, explained that move as a measure to reduce redundancy, rather than straight-up admitting that it was a PR move to silence its legion of critics.

Donuts to launch .contact next week

Kevin Murphy, September 23, 2020, Domain Registries

Almost a year and a half after buying it, Donuts is ready to launch its newest gTLD, .contact.

According to ICANN records, the sunrise period for the domain will run from September 29 to November 28.

Registrars report that general availability will begin December 9. Retail pricing is expected to be competitive with .com.

Donuts will also run its traditional Early Access Period, from December 2, a week during which prices start very high and decline day by day.

It will be an unrestricted space, as it Donuts’ wont, and I imagine the suggested use case is something similar to the .tel model — the publication of contact information.

Donuts acquired .contact from Top Level Spectrum for an undisclosed amount in April 2019.

Portugal reports lockdown boom continued through the summer

Kevin Murphy, September 16, 2020, Domain Registries

While the coronavirus pandemic is well past its first peak in western Europe, the lingering effects of government restrictions is a gift that continues to give for at least one ccTLD.

Associação DNS.PT today reported that total registrations of .pt names in August (6,843) were 35% higher than during the same period last year, and that July’s number was 17.28% higher than the year-ago month.

The registry added that the trend seems to be continuing into September.

The company said that registrations were mostly driven by “catering and domestic service companies, gyms and social solidarity projects” getting online for the first time due to pandemic restrictions.

Oddly, the new numbers appear to have been presented today at an in-person, though socially distanced, lecture by DNS.PT and government officials.