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CentralNic and .CLUB reveal premium sales

Kevin Murphy, November 8, 2017, Domain Services

CentralNic and .CLUB Domains have both revealed sales of premium domain names over the last several days.

CentralNic said yesterday that it has sold “a number” of premiums for $3.4 million.

The names are believed to be from its own portfolio, rather than registry-reserved names in any of the TLDs it manages. The company did not disclose which names, in which TLDs, it had sold.

The sale smooths out potential lumpiness in CentralNic’s revenue, and the company noted that the sales means that recurring revenue from its registrar and registry business will become an increasing proportion of its revenue as its premium portfolio diminishes.

Last week, .CLUB announced that it sold $380,793 of premium .club domains in the third quarter. That was spread over 452 domains.

The big-ticket domains were porn.club and basketball.club, sold by the registry for $85,000 together.

The Q3 headline number was a sharp decline from the Q2 spike of $2.7 million, which was boosted by auctions in China.

The company published a lot more data on its sales on its blog, here.

.CLUB HQ trashed by Irma, nobody hurt

Kevin Murphy, September 12, 2017, Domain Registries

.CLUB Domains returned to its new digs in Fort Lauderdale, Florida yesterday to find the building trashed by hurricane Irma.

Irma damage

Fortunately, none of the .club gTLD registry’s 17 employees were hurt during Irma, the category 5 hurricane which lashed Florida over the weekend.

Irma caused at least 10 reported deaths in the state and untold amounts of property damage. Over its full path, close to 50 people have been reported killed.

Chief marketing officer Jeff Sass said that “large parts of the roof had been torn away, exposing our office to devastating wind and rain, pretty much ruining everything”.

“Literally, it looks like a bomb went off. I couldn’t believe the damage. It’s truly a sad day for our company. We feel for everyone affected by this horrible storm and we are very fortunate as all our staff are safe,” CEO Colin Campbell said in a blog post.

Ironically, the building had been scheduled for a refurbishment anyway.

.CLUB plans to use the facility as a tech startup incubator under the brand Startups.club. It had recently been approved for funding by the local Fort Lauderdale government, according to Sass.

None of the company’s registry operations, which are based hundreds of miles north in Virginia, were affected by the damage.

Fellow new gTLD registry MMX is legally based in the thoroughly devastated British Virgin Islands, but has no staff or premises there so was unaffected.

Domain Name Wire is reporting that some registry functions of Anguilla’s .ai ccTLD, also in Irma’s path, were not working in its wake.

Photo: .CLUB Domains

Registry bosses to talk ICANN “tax cuts” at private meeting

Kevin Murphy, September 5, 2017, Domain Registries

The CEOs of 20 or more gTLD registries are due to meet privately this month to discuss, among other things, the possibility of a reduction in their ICANN fees.

The Registry CEO Summit is being held in Seattle at the end of September, I’m told.

Jay Westerdal of Top Level Spectrum (.feedback etc) and Ray King of Top Level Design (.design etc) are organizing the event.

“It’s a small, informal gathering, where the agenda will be set by the participants, most likely around best practices for running a new registry,” Westerdal said.

“It’s not an official group like the RySG, and we don’t expect to be putting out any statements or ‘work product’,” he said.

He said he expects 20 to 25 registry CEOs to attend.

.CLUB Domains CEO Colin Campbell, who said he will attend, said he intends to bring proposals to the meeting around persuading ICANN to support the industry with marketing support and fee reductions.

Campbell wants ICANN to commit to spend $4 million on marketing new gTLDs at trade shows and conferences.

He also wants ICANN to reduce its $0.25 per-domain registry fee, which he referred to as a “tax”, to $0.18 for three years (which would match the $0.18 registrars pay ICANN per transaction).

He said the money would ideally flow through into the pockets of registrants, rather than the industry.

“I’m not suggesting that it be permanent, I’m suggesting that in order to support the fledgling new gTLD industry that they offer a small reduction and hope registries will pass that on to registrars and hopefully registrars will pass that on to consumers,” Campbell said.

The reduction would also help raise awareness of new gTLDs, he said.

The $0.25 fee only kicks in when a registry tops 50,000 billable transactions per year, so the reduction would at first only affect the roughly 50 to 60 new gTLDs that are already over that milestone.

The $0.07 per-domain reduction is so small that even a registry as large as .club, with about a million domains, would only see its fees reduced by about $70,000 per year.

Over all the affected TLDs, it would come out to a cost to ICANN of about $1.2 million per year if current volumes hold.

“It’s a very small amount but I still believe the benefit goes to end users,” Campbell said.

For registrants, it’s difficult to imagine $0.07 making a huge difference, unless they’re a high-volume buyer (which are not always the buyers you want). Generally, the cheaper domains get the more they attract abusive registrants.

Whether the ideas will get any traction among other registry CEOs remains to be seen, but it’s not the first idea for reduced ICANN fees to come out of the registry community recently.

In March, the RySG formally asked ICANN to tap into its war chest of excess new gTLD application fees to waive 75% of its fixed $25,000 annual per-TLD fee, a move that would affect all new gTLDs rather than just the larger ones.

The rebate would have cost ICANN $17 million.

But ICANN knocked that idea back last week, saying it still does not know how much of this $96 million cash pile it will have to spend on unexpected events stemming from the program.

.CLUB nears profitability, talks renewals and “trial” domains

Kevin Murphy, September 4, 2017, Domain Registries

.CLUB Domains is nearing profitability and poised to become a “growth engine”, despite the view that most of its current domains are not expected to renew, according to its CEO.

Colin Campbell told DI today that the company made $6.7 million in revenue last year, and is “very close” to breaking even.

The company reached one million domains under management milestone in June, but Campbell freely admits that the majority of its current domains are unlikely to renew.

Almost 700,000 of these domains are what .CLUB considers “trial accounts”, he said. These are domains that typically sold for under a dollar — .club has been seen for sale as low as $0.88 — to speculators.

The registry usually sees a 10% to 15% renewal rate on these domains, he said.

Of the remaining 300,000 “solid, regular registrations”, Campbell said he sees first-year renewals in the 68% to 70% range and subsequent years at 80% to 90%.

The company typically only discounts on its first-year registrations, so renewal rates are a much better indicator of performance.

He said .club has around 120,000 web sites (not including parked domains), some of which are showcased on its web site.

With this in mind, renewals are at the forefront of Campbell’s mind. He said a key performance indicator .CLUB uses is “average cost of acquisition per renewed domain”, which the company tracks on a per-registrar basis.

The company invested $3.3 million in marketing in 2016, he said. That does not include rebates to registrars participating in volume programs, but it does take into account acquiring prominent shelf space on key registrars, he said.

“We’re very close to break-even and we’re still going to be able to invest multi-million dollars in ad campaigns and marketing,” he said.

“We’re going to have a company that’s breaking even and is still going to be a growth engine,” he said. “We’re going to be able to sustain a path of growth. I don’t know too many TLDs who could say that. Of course, if you reduce your expenses down to nothing you can make a profit, but can you also be a growth engine?”

“That’s where I feel like a TLD needs to get to, to be a sustainable long-term presence in the market, like a .org or .net or .co,” he said.

Despite the narrowing losses and starkly higher volumes, the $6.7 million in 2016 revenue is a lower than the $7 million in 2015 revenue Campbell told Domain Name Wire about a year ago.

Campbell said today that the reason for the dip is that late 2015 saw many gTLDs (old and new, even including .com) benefit from a bump from the Chinese market. .CLUB’s top line was particularly exposed by some premium sales it made to Chinese investors during that growth spike.

Premium sales have also been performing well in 2017, Campbell said, driven by the financing options and broker program introduced in January.

.CLUB announced first-quarter premium sales totaling $505,000 and $2.5 million in Q2.

.club premium sales approaching $5 million

Kevin Murphy, April 11, 2017, Domain Registries

.CLUB Domains sold half a million dollars worth of reserved premium names in the first quarter, bringing its cumulative to-date total to almost $5 million, the registry reported at the weekend.

Q1 sales were $505,139, the company said, bringing its total since launch to $4,844,428.

There were 475 premium sales in total, sold via auctions, registrars and aftermarket platforms, it said.

Headline sales in the period included seniors.club and pet.club for $18,000 apiece, and photo.club for $10,000.

The numbers may indicate that its broker program and financing options, introduced in January, may be taking off.

The registry’s Q1 sales amount to more than half of what it sold in the whole of 2016.

More sales figures are available in the .CLUB Domains blog post.