Latest news of the domain name industry

Recent Posts

.CLUB revenue not all that

Kevin Murphy, August 21, 2018, Domain Registries

.CLUB Domains may be one of the 5000 fastest-growing companies in the US, according to Inc magazine, but it’s returning the majority of its revenue back to its registrars.

CEO Colin Campbell revealed this week that the company returns almost 70% of its gross revenue in the form of rebates.

The revelation came in an interview with Domain Name Wire on its latest podcast.

Campbell told Andrew Allemann that in 2017 .CLUB had $9.3 million in what he called “cash flow” or “gross revenue”.

But “net cash” or “net revenue”, after rebates was just $2.8 million, meaning $6.5 million was returned to registrars via promotions.

The interview came a few days after Inc named the company 1164th in its 2018 list of fastest-growing US companies.

Inc had .CLUB’s revenue at $7.2 million, but that appears to have been calculated using the usual accounting standards of deferring revenue into future periods over the lifetime of the domain subscription.

.club has something like 1.4 million names under management.

Campbell said that the company is “adding about a million dollars of net revenue per year” and he predicted 2018 gross cash to come in at $10.5 million and net to come in at $3.7 million.

That’s a net revenue figure, remember, not a profit or net income line. Campbell said he’s more interested in growing the business rather than paying taxes on profits.

The aggressive rebating seems to have a focus in China, where it has regular deals with the likes of Alibaba (which was .club’s biggest registrar with 20% of the market at the last count) and West.cn.

While .CLUB is private, Campbell has been frank about its performance in the past.

The DNW interview follows DI’s interview with Campbell on more or less the same topic last September, and DNW’s in 2016.

It’s a good podcast, you should have a listen.

Baidu gets Chinese approval for .baidu

It seems China’s Draconian licensing program for TLD registries is not limited to foreigners.

Chinese internet giant Baidu on Friday became the latest new gTLD registry operator to get the nod to run a TLD by the Ministry of Industry and Information Technology.

The approval was for .baidu, which is currently pre-launch with no launch plan on record.

Despite the brand match, it’s not technically a dot-brand gTLD — its ICANN contract has no Specification 13, which contains various carve-outs for single-registrant spaces.

While not particularly well-known in the English-speaking world, Baidu is second only to Google in terms of search engine market share, due to its dominance in China.

The company had 2017 revenue of almost CNY 85 billion ($12.5 billion).

ICANN rejected Israel as meeting venue due to threat from Gaza and Iran

Kevin Murphy, July 24, 2018, Domain Policy

Israel was rejected as a possible venue for one of ICANN’s 2020 public meetings due to concerns about Middle East violence, DI has learned.

A proposal to host a meeting in Tel Aviv was discounted, with ICANN staff telling the board of directors that it is “not suitable for an ICANN meeting due to security concerns.”

“With the proximity to the Gaza strip and the escalation of an Iran/Israel conflict we feel it is best to avoid this region,” the board was told at its meeting last month.

Cost was also cited as a reason to avoid the city, though there was no mention of visa problems (which I imagine would be a concern for many community members).

Tel Aviv, which was proposed by a local registrar, was among five possible venues for ICANN’s mid-2020 Policy Forum that were rejected in favor of Kuala Lumpur, Malaysia.

The others, which all came from the Asia-Pacific region per ICANN’s regional rotation policy, were Macau (China), Auckland (New Zealand), Sydney (Australia) and Adelaide (Australia).

It also appears that locations proposed by community members seem to get preference over those proposed by venues, such as convention centers, themselves.

The alternative proposals have come to light because ICANN neglected to redact confidential information from a set of board briefing documents (pdf) published last week. The unredacted information reads:

Other Hosting Proposals Received:

  • Macao, China: Yannis Li (DotAsia), Bonnie Chun (HKIRC) and Paco Xiao (MONIC) submitted a proposal. However, we found this location to be more expensive than Kuala Lumpur.
  • Auckland, New Zealand: Jordan Carter from InternetNZ submitted a proposal. However, we found this location to be more expensive than Kuala Lumpur.
  • Tel-Aviv, Israel: Yoav Keren from Domain The Net Technologies Ltd. submitted a proposal. However, we found this location to be more expensive than Kuala Lumpur and not suitable for an ICANN meeting due to security concerns. With the proximity to the Gaza strip and the escalation of an Iran/Israel conflict we feel it is best to avoid this region.
  • Sydney, Australia: Joanne Muscat from Business Events Sydney submitted a hosting proposal. However, this location was proposed by the meeting venue not a community member and is more expensive than Kuala Lumpur.
  • Adelaide, Australia: Jacqui Lloyd from Adelaide Convention Bureau submitted a proposal. However, this location was proposed by the meeting venue not a community member and is more expensive than Kuala Lumpur.

The same document also reveals that proposals to host ICANN’s 2020 Latin America meeting — which was ultimately awarded to Cancun, Mexico — were received from Lima, Peru and Monterrey, Mexico.

Monterrey was also rejected due to unspecified “security and accessibility concerns”.

The US State Department currently classifies Monterrey with a “Level 3 — Reconsider Travel” status, whereas Cancun has a lower “Level 2 — Exercise Increased Caution” status.

The unredacted text reads:

  • Lima, Peru: Johnny Laureano from the Asociación de Usuarios de Internet del Perú submitted a hosting proposal. The proposed convention center is still in the process of selecting a management company. The host has not followed through with a valid proposal.
  • Monterrey, Mexico: Monica Trevino from Cintermex Convention Center submitted a hosting proposal. The location was not suitable for an ICANN meeting due to security and accessibility concerns.

Paris, Budapest, The Hague, and Geneva — some of which had been scouted by ICANN as opposed to being proposed by third parties — were rejected as venues for the 2020 European meeting.

The unredacted document reads:

  • Paris, France: Laure Filloux from VIPARIS Palais des Congrès de Paris submitted a hosting proposal. However, this location was proposed by the meeting venue not a community member and is more expensive than Hamburg.
  • Budapest, Hungary: Balazs Szucs from HungExpo Budapest submitted a hosting proposal. This location was proposed by the meeting venue and was not suitable for an ICANN meeting.
  • The Hague, Netherlands: Identified by the ICANN meetings team as a possible location was also considered. The location was more expensive than Hamburg.
  • Geneva, Switzerland: Identified by the ICANN meetings team as a possible location was also considered. The location was more expensive than Hamburg.

The European meeting will instead take place in Hamburg at the invitation of local trade group eco and the city council.

The cost of each successful proposal, which seems to be the clincher in each case, is redacted in these documents.

MMX gets four more gTLDs approved for China use

MMX’s Chinese subsidiary has received the government nod for four more of its new gTLDs to operate in the country.

The approved strings are the lifestyle-oriented .fashion, .luxe, .yoga and .fit.

Getting the nod from the Ministry of Industry and Information Technology means Chinese registrants will be able to use domains in the the four gTLDs, albeit subject to China’s much more stringent censorship regime.

MIIT this week also approved .时尚, which is the Chinese version of .fashion, managed by Rise Victory, a subsidiary of Yuwei Registry.

.fashion, .fit and .yoga have about 40,000 domains in their zone files, combined, while .luxe does not yet have a launch date.

MMX has had some success in China with its flagship .vip TLD, which had over 884,000 domains under management at the last public count. It recently said preliminary second-quarter renewals there were a very respectable 75%.

It also recently that that .购物 (.shopping) and .law both went on sale in China, and “will be marketed by in-country specialists as high-value domain names”. Investors were advised not to expect high volumes.

.co first ccTLD to get China approval

Repurposed Colombian ccTLD .co has obtained official government approval to operate in China, according to a consultant whose client worked on the project.

Pinky Brand blogged this week that .co is the “first” foreign ccTLD to get the nod, among the raft of gTLDs that have gone down the same route over the last couple of years.

China’s own .cn and Chinese-script equivalents are of course already approved.

Under China’s policy regime, administered by the Ministry of Industry and Information Technology, TLD registries have to set up a local presence and agree to Draconian takedown policies.

Non-approved TLDs are not permitted to have resolving domains, under the rules.

Most companies seeking Chinese approval tend to use a local proxy provider such as ZDNS, which seems to be the route taken by .co here.

.co is managed by Neustar via its Colombian subsidiary .CO Internet.