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.hiv to auction with “no profiting” catch

Kevin Murphy, April 24, 2015, Domain Registries

Don’t all rush to your checkbooks at once.

The live TLD .hiv is going to be among the next batch of new gTLDs auctioned off by Innovative Auctions, but the contract comes with a no-profit clause.

Innovative and dotHIV Registry announced the sale yesterday.

.hiv is an unsuccessful gTLD so far. It had just over 2,000 registered names at the end of 2014, according to registry reports, but never more than 423 the names have been present in the DNS.

Registry CEO Carolin Silbernagl said:

In the eight months since our launch we have gained a lot of insight about what it needs to reach this. The reason why we are offering .hiv for sale is because we see how successful it can be. However, we realized that dotHIV is not the right vehicle for the next phase – the TLD needs a bigger and more international home to truly spread its wings.

It went to general availability last August, with an innovative but risky business model based around charitable micro-donations to HIV/AIDS causes.

Of the $200 annual retail fee, dotHIV put $120 into a pool reserved for charities. Every visit to a .hiv that was participating in a “Click Counter” service would cause a small amount of that money to actually be donated.

Judging by visits to a few .hiv domains this morning, just €862 — less than $1,000 — has been donated so far, based on fewer than 133,000 clicks.

This donation model is “just one of many possible uses” and not a contractual requirement, according to Silbernagl.

There is, however, a binding Public Interest Commitment that obliges the registry to give “all excess profits” to HIV causes. The PIC reads:

Registry Operator commits to implementing and performing the following protections for the TLD: Registry Operator, as a social enterprise, is driven by its sole mission to support the global HIV response. Therefore, Registry Operator will reinvest all excess profits in projects serving this mission.

Not it’s not exactly an attractive investment opportunity, in terms of pure cash ROI.

But Innovative said there’s another reason to buy: “Approaching .hiv as a corporate philanthropic engagement could have positive effects on public image and employee satisfaction for the buyer.”

.hiv is due to be part of the June 3/4 live gTLD auction, which also includes .promo.

Live gTLD .reise sold at auction

Kevin Murphy, March 3, 2015, Domain Sales

The first auction of a live new gTLD resulted in a sale, I can reveal.

Dotreise’s .reise, which is German for “.travel”, changed hands in an auction managed by Applicant Auction last Friday.

Unfortunately, I haven’t been able to identify the winning bidder or the winning bid, but the winner’s identity will inevitably be revealed sooner or later.

Applicant Auction had said there was to be a $400,000 starting bid on the gTLD.

.reise has been general availability since August but has only about 1,300 names in its zone file. It retails for up to $180 a year.

If the TLD’s new owner is not Donuts, the company will find itself competing with Donuts’ much cheaper and more popular .reisen.

.blog won in eight-figure auction by Primer Nivel

Kevin Murphy, February 16, 2015, Domain Registries

A Colombian registrar has become the unlikely owner of the coveted .blog new gTLD, beating eight other applicants to the string at auction.

Winning bidder Primer Nivel is a Panamanian company affiliated with Bogota-based CCI REG, which runs my.co.

The company was the first to reveal its plans to apply for .blog, telling DI back in April 2012 about its ambitions of the gTLD.

Rival bidders Radix, Minds + Machines, Donuts, Afilias, Merchant Law Group, BET, Google and Top Level Design all withdrew their applications over the weekend.

We’re certainly looking at an eight-figure sale here.

Kieren McCarthy, writing at The Register, reckons it went for $30 million or more, based on the fact that M+M got $3.4 million for withdrawing from .blog and .store auctions, but his back-of-the-envelope calculations are off-target for a few reasons.

Knowledgeable DI sources say the sale price was considerably lower than $30 million.

My envelope puts it at somewhere in the range of $15 million to $18 million.

I’ve always said .blog is among my favorite new gTLD strings. The market opportunity is potentially huge, with hundreds of millions of blogs live on the web today.

Primer Nivel, which to the best of my knowledge is not (unlike some other applicants) affiliated with a particular blogging platform, plans to operate .blog as an open gTLD.

The separate auction for .store, meanwhile, was won by Radix, after withdrawals from M+M, Donuts, Amazon, Google, Dot Store and Uniregistry this weekend.

.reise to start at $400k in no-reserve auction

Kevin Murphy, February 11, 2015, Domain Registries

Applicant Auction has revealed the starting price of the first live new gTLD to be auctioned off.

Dotreise’s .reise will have a minimum starting bid of $400,000 when it hits the block on February 27, the company revealed.

There will be no reserve.

It seems quite possible that the registry is barely covering its costs, assuming the TLD sells. The application fee was $185,000, and no doubt the company has racked up many more expenses over the last three or four years.

The TLD, which is German for “.travel” has been in general availability since August but has fewer than 1,300 registrations, selling at up to $180 a year.

It competes with Donuts’ $25-a-year .reisen, which pretty much means the same thing.

.reise is first live new gTLD to hit the auction block

Kevin Murphy, January 7, 2015, Domain Registries

German domain registry Dotreise has become the first company to reveal that it wants to sell off a new gTLD.

Innovative Auctions is to handle an auction on February 27 at which Dotreise will attempt to unload the unwanted string, it emerged this evening.

The word “reise” is German for “travel”.

The gTLD has failed to capture much interest since it launched. As of today, it has just 1,254 domains in its zone file, about 1,000 of which were registered in its first week of general availability last August.

At launch, it had just a handful of registrars. Only four registrars sold more than 100 names in August.

It’s currently a relatively big-ticket TLD, which may account for the low sales. It retails for about $170 to $180 at United-Domains, the registrar that has shifted the most .reise names to date.

That would put revenue for .reise at under a quarter of a million dollars a year, based on its current volume, I guess.

It competes with Donuts’ .reisen, which has pretty much the same meaning but has been available a month longer and retails for under $25 a year; .reisen has a slightly bigger zone file, at 3,839 domains.

According to Innovative, the company behind Applicant Auction, which helps settle new gTLD contention sets with auctions:

The .REISE TLA will be a simultaneous ascending clock auction, similar to the format of the Applicant Auction. There will be no buyer commission for this auction, so no additional fees – you just pay the winning price if you win.

It’s a one-day auction.

Innovative had planned to auction off multiple live gTLDs in October, but was hit by delays.