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Chinese registrars on the decline

Kevin Murphy, October 1, 2018, Domain Registrars

Having been on a growth trajectory for some years, the number of ICANN-accredited registrars based in China appears to be on the decline.

According to my records, so far this year 26 registrar contracts have been terminated, voluntarily or otherwise, 11 of which were Chinese. I’m excluding the mass drop of Pheenix accreditations from these numbers.

The country with the next-highest number of terminations was the USA, with three.

ICANN has terminated nine registrars for breaches of the RAA this year, six of which were Chinese.

All the Chinese notices included non-payment of ICANN fees as a reason for termination, though it appears that most of them had a negligible number of gTLD domains under management.

ICANN Compliance tells me there’s no particular focus of China at the moment, this is all a result of regular day-to-day enforcement.

ICANN has sent breach notices to 28 companies this year, seven of which were to Chinese registrars.

Meanwhile, 22.cn has moved 13 of its accredited shell registrars to Hong Kong. Another registrar moved its base from China to Australia.

Seven Chinese registrars have been newly accredited this year,

Net, this has all reduced the number of accredited registrars based in China to 91.

The country still has the second-most registrars ahead of the US, with its almost 2,000 registrars, and a clear 31 registrars ahead of third-place India.

Wix.com obtains ICANN accreditation — bad news for Web.com?

Web site building tools provider Wix.com has got itself an ICANN accreditation, potentially bad news for current partner Web.com.

The Nasdaq-listed, Israel-based company popped up on the official registrar list in the last day or so with the IANA ID 3817.

That means it could before long start selling gTLD domains directly from the registries rather than going through its current business partner.

According to its domain services agreement and other online sources, Wix currently acts as a reseller for Network Solutions, a Web.com company.

Its retail prices are therefore, as you might expect, rather above the market average, pretty much in line with NetSol’s.

If it does choose to go solo, it could potentially pass on savings to its customers, or just pocket higher margins on domain sales.

While Wix says it has 110 million users, obviously it has sold nowhere near that number of domains.

Its relationship with NetSol is not lucrative enough for Web.com to count the relationship as a risk factor in its Securities and Exchange Commission filings, though Wix is listed as one of just a small handful of competitors.

If Web.com should lose Wix as a reseller, we won’t get to find out what impact that had on revenue; Web.com’s going private in a $2 billion deal.

Disclosure: I’ve had to listen to or skip through repetitive Wix ads on YouTube a dozen times a day for what seems like years, so I’m not naturally predisposed to like this company. Same goes for Grammarly. Grrrr!

Pheenix adds 300 more registrars to drop-catch arsenal

Kevin Murphy, December 16, 2016, Domain Services

The domain drop-catching arms race is heating up, with budget player Pheenix this week acquiring 300 more registrar accreditations from ICANN.

According to DI records, the company now has almost 500 registrar accreditations in its family.

More accreditations means more registry connections with which to attempt to acquire expired domains as they return to the available pool.

It also means that Pheenix’s dropnet (a word I just made up that sounds a bit like “botnet” in a pathetic attempt to coin a term for once in my career) is now a bit bigger than that of Web.com, the registrar pool behind Namejet and SnapNames.

It’s still a long way behind TurnCommerce, owner of DropCatch, which two weeks ago added a whopping 500 new accreditations, bringing its total to over 1,250.

An extra 300 accreditations would have cost Pheenix over $1 million in up-front ICANN fees and will incur ongoing fixed annual fees in excess of $1.2 million.

DropCatch spends millions to buy FIVE HUNDRED more registrars

Kevin Murphy, December 2, 2016, Domain Registrars

Domain drop-catching service DropCatch.com has added five hundred new registrar accreditations to its stable over the last few days.

The additions give the company a total accreditation count of at least 1,252, according to DI data.

That means about 43% of all ICANN-accredited registrars are now controlled by just one company.

DropCatch is owned by TurnCommerce, which is also parent of registrar NameBright and premium sales site HugeDomains.

Because gTLD registries rate-limit attempts to register names, drop-catchers such as DropCatch find a good way to increase their chances of registering expiring names is to own as many registrars as possible.

DropCatch is in an arms race here with Web.com, owner of SnapNames and half-owner of NameJet, which has about 500 registrars.

The new accreditations would have cost DropCatch $1.75 million in ICANN application fees alone. They will add $2 million a year to its running costs in terms of extra fixed fees.

That’s not counting the cost of creating 500 brand new LLC companies — named in the new batch DropCatch.com [number] LLC where the number ranges from 1046 to 1545 — each of which is there purely for the purpose of owning the accreditation.

In total, the company is now paying ICANN fixed annual fees in excess of $5 million, not counting its variable fees and per-transaction fees.

Because the ICANN variable fee is split evenly between all registrars (with some exceptions I don’t think apply to DropCatch), I believe the addition of 500 new registrars means all the other registrars will be paying less in variable fees.

There’s clearly money to be made in expiring names.

.sucks terminates Com Laude as “gag order” row escalates

Vox Populi, the .sucks gTLD registry, has terminated the accreditation of brand protection registrar Com Laude as part of an ongoing dispute between the two companies.

Com Laude won’t be able to sell defensive .sucks registrations to its clients any more, at least not on its own accreditation, in other words.

The London-based registrar is transferring all of its .sucks domains to EnCirca as a result of the termination and says it is considering its options in how to proceed.

The shock move, which I believe to be unprecedented, is being linked to Com Laude’s long-time criticisms of Vox Populi’s pricing and policies.

The registrar today had some rather stern words for Vox Pop. Managing director Nick Wood said in a statement:

We have always been critical of this registry and particularly its sunrise pricing model which we regard as predatory. We have advised clients where possible to consider not registering such names. We hope that all brand owners will think twice before buying or renewing a .sucks domain. After all, it is not possible to block out every variation of a trademark under .sucks. In our view, fair criticism is preferable to dealing with Vox Populi.

Ouch!

The termination is believed to be linked to controversial changes to the .sucks Registry-Registrar Agreement, which Vox Pop managed to sneak past ICANN over Christmas.

One of the changes, some registrars believed, would prevent brand protection registrars from openly criticizing .sucks pricing and policies. They called it a “gag order”.

Com Laude SVP Jeff Neuman was one of the strongest critics. I believe he was a key influence on a Registrar Stakeholder Group letter (pdf) in January which essentially said registrars would boycott the new RRA.

That letter said:

It’s ironic for a Registry whose slogan is “Foster debate, Share opinions” has now essentially proposed implementing a gag order on the registrars that sell the .sucks TLD by preventing them from doing just that

While the RRA dispute was resolved more or less amicably following ICANN mediation, with Vox Pop backpedaling somewhat on its proposed changes, Com Laude now believes the registry has held a grudge.

Its statement does not say what part of the .sucks RRA it is alleged to have breached.

Vox Pop has not yet returned a request for comment. I’ll provide an update should I receive further information.

Com Laude said in a statement today:

Jeff Neuman, our SVP of our North American business, Com Laude USA, led the effort in the Registrar Stakeholder Group to quash proposed changes to Vox Populi’s registry-registrar agreement, in order to protect the interests of brand owners and the registrars who work with them. Since then, Vox Populi has accused Com Laude of breaching the terms of the registry-registrar agreement, a claim we take seriously and refute in its entirety. We are now considering our further options.

Wood added:

We have informed our clients of the action being taken and all have expressed their support for the manner in which we have handled it. We are pleased to have received messages of support from across the ICANN community including other registry operators. Clearly there is strong distaste at the practices of Vox Populi.

Strong stuff.