The soon-to-be-auctioned new gTLD .hiv has a reserve price of $200,000, but the registry reckons it’s worth as much as $700,000.
That’s according to auction documents provided by dotHIV Registry to DI today.
The documents also reveal that .hiv has made
a profit revenue of $83,000 in its first seven months.
UPDATE: Germany-based dotHIV says now that the reference to “net income” in its prospectus was a translation error. The $83,000 refers to revenue — the top line, not the bottom line. The company intends to update its auction documents “instantly”.
Earlier today we reported that the gTLD is to go under the hammer with Innovative Auctions on June 3/4.
We reported that the gTLD had about 2,000 registrations, but it turns out that number includes about 1,700 registry-reserved names.
The actual number, as of March 31, is 410, of which 345 pay the $179 annual registry fee. Another 63 domains were given away for free to HIV charities for a three-year period.
While this generated a
net income revenue of $83,000, registry CEO Carolin Silbernagl confirmed to DI that its contract with ICANN is supposed to require “all” of its profits to be donated to HIV causes.
According to the documents:
Public Interest Commitment binds the TLD to non-profit operations. All excess profit, after the deduction of all thinkable costs and investments, is to be donated to a charitable cause of the owner’s choice.
We have founded and built the .hiv TLD as a tool for positive social impact. To safeguard this vision, the voluntary PIC in the .hiv Registry Agreement binds the owner to invest all excess profit in the projects that support the fight against AIDS.
All this comes at no risk for the registry: Operational costs are covered first. No one expects you to donate if there is no surplus. Costs include the purchase price of the TLD in this auction.
The registry’s documents affirm that the key reason to buy .hiv would be to boost your public image due to “corporate social responsibility”.
The buyer would also get free marketing support from the German ad agency thjnk and free data escrow from NCC Group until July 2017, along with a bunch of software dotHIV uses to manage the TLD.
According to dotHIV, there were 14,000 pre-registrations with registrars prior to launch. Most balked at the high registration fee and did not convert into buyers.
The registry says the new owner could capitalize on some of this interest, growing volumes, by reducing its registry fee.
There are 47 registrars accredited to sell .hiv domains, including Go Daddy.
Premium names sold so far, for between $1,500 and $5,000, include: treat.hiv, test.hiv, cure.hiv, prevent.hiv, magazin.hiv, hivanswers.hiv, prävention.hiv, prep.hiv, vorsorge.hiv.
If dotHIV makes a profit from selling the gTLD, it says it will donate it to HIV charities.
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.
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.
Top Level Domain Holdings made almost $5 million by losing auctions for the .lawyer and .website gTLDs this week, according to the company.
The London-listed company told the markets today that it has added £2.97 million ($4.81 million) to its coffers as a result of the auctions, in which Radix won .website and Donuts won .lawyer.
The number is net of the 4% cut taken by Innovative, which conducted the auctions, and the two $65,000 refunds TLDH will receive from ICANN when it withdraws the applications.
Some portion of the $4.8 million TLDH will have received from Donuts, where .lawyer was a two-horse race.
Radix’s winning bid for .website will have been split evenly between TLDH and Donuts.
At least one of these TLDs seems to have sold for significantly more than the average private auction selling price, which was $1.33 million after the first 14 Innovative auctions.
Innovative has managed auctions for 18 strings, but we don’t know the total price of the latest four.
The .website and .lawyer deals means TLDH now has £10.1 million ($16.3 million) in cash reserves, according to a company press release.
It still has 43 contested applications, however. On a $16 million budget — quite a lot less than some of its portfolio rivals — the company is going to have to make some smart tactical moves to maximize its gTLD portfolio.
“Our strategy remains to best monetise those applications where we see least value so that we can maximise our ability to acquire those names in which we see greatest value,” chairman Fred Krueger said in the press release.
It still has stakes in 25 uncontested gTLDs.
NOTE: An earlier version of this story contained inaccurate statements — failing to take into account that .website was a three-way contest — about the average selling price of new gTLDs at auction.
Directi-affiliated TLD registry Radix, has won the private auction for the .website gTLD, according to Radix.
The company beat rival portfolio applicants Donuts and Top Level Domain Holdings to the string, in an auction that was managed by Innovative Auctions, likely one of several going on this week.
There’s no outstanding Governmental Advisory Committee advice or objections to the Radix application, so its path to contracting and eventual delegation should be relatively uncontroversial now.
The price was undisclosed, Innovative’s standard terms.
Directi is in the process of being acquired by Endurance International, owner of Domain.com, which promised Radix up to $62 million to help with its gTLD auctions.