The Global Domain Industry Conference, held in China over the weekend, has led to a huge boost in .vip domain sales.
Registry Minds + Machines told the markets this morning that the recently launched gTLD hit 404,892 as of 1600 UTC yesterday, up 49% from Friday.
CEO Toby Hall confirmed to DI that China is very much behind the spike, and that the conference helped raise the profile of .vip.
Billings and orders have now hit $5.5 million, up from $3.2 million on May 22, M+M said. That number includes sunrise and premium sales.
At GDS, M+M sold eight .vip domains auction for a total of $232,000 before auction commissions, which very likely inspired the spike in base-fee registrations.
Photos of GDS published on social media yesterday show a packed auditorium, with hundreds of attendees.
— 西部数码 (@westdotcn) June 6, 2016
While M+M makes much of the fact that it has not used a “freenium” strategy for .vip — which it says may lead to better renewal rates than competitors — retail prices are still pretty damn cheap.
At West.cn, its leading Chinese registrar, a .vip can be had today for about $3. It’s closer to $10 at GoDaddy.
Today’s batch of zone files have not yet been published by ICANN for verification, but yesterday there were 245,872 names in .vip.
Minds + Machines has billed $3.2 million in .vip domain names sales after the first five days of operation, the company said this morning.
It’s already managed to pay off the cost of acquiring the domain at the September 2014 auction, which was $3.1 million.
Between 1600 UTC May 17, when .vip went to general availability, and the same time May 22, the gTLD racked up 203,720 domains, the company said.
The $3.2 million is a “billings” number, which will convert to accounting revenue over the lifetime of the domains.
For comparison, billings in the whole of 2015 was $7.9 million.
M+M now has over half a million domains under management, a 64% increase from the start of the year, the company said.
Registrations from China, where presumably owning a .vip name does not make you look like a douchebag, accounted for over 80% of the registrations. Almost half of its registrars are Chinese.
Major Chinese registrars are currently selling .vip names for CNY 25-26 (about $4) apiece.
The discrepancy between that low price and the $3.2 million (which implies an average wholesale price of about $16) is due to the effects of premiums, sunrise and multi-year registrations, CEO Toby Hall told DI.
M+M, like the vast majority of TLD registries, is not currently licensed in China, so these names will not legally be allowed to be developed into sites until the company has gone through the full governmental approval process.
Hall said in a press release:
The Chinese market for top-level domains is real and we are delighted to have accessed this key region through the .vip launch… It is a major milestone for the Company, the new management team and our business model centred on working with best-in-class partners across every aspect of our business so as to best monetize our assets while maintaining a tight control on central overheads. It demonstrates that, when properly executed, how quickly the initial investment costs for a domain can be recovered and the potential for a strong recurring revenue established. The .vip launch equally illustrates how as a b2b business we do not have to burn funds on marketing to reach end-consumers and achieve outstanding results.
He’s referring there primarily to M+M’s ongoing restructuring, which has seen the company ditch its registrar business in favor of a more heavily channel-focused approach.
SpamHaus has updated its “10 Most Abused Top Level Domains” list to provide a much more useful insight into abuse levels.
Rather than simply showing unexplained percentages of “badness” in each TLD, the spam-fighting organization’s daily report now exposes the hard numbers, in domain terms, underneath.
For example, on today’s list Famous Four Media’s .download is the most-abused TLD with 82% bad domains.
That percentage is based on SpamHaus categorizing 11,431 domains as abusive of the 13,945 .download domains that crossed its systems.
But the gTLD has 67,500 domains in its zone file, so the actual percentage of abusive domains could be as low as about 17%, much lower than SpamHaus’s 82%.
Whether you think the 82% metric is fair will depend on whether you think SpamHaus’s sample — about 20% of the full .download zone — is representative.
Some of the other TLDs on its list have even smaller sample sizes.
Minds + Machines’ .work is ranked #2 on the SpamHaus list with 73.3% badness, based on a SpamHaus-seen sample of 6,297 domains, something like 7% of the full .work zone.
Registries criticized SpamHaus for publishing misleading data when this list was first published in March, and I agreed with them.
Now that the group is publishing empirical data alongside its percentages, the conversation can now shift to something along the lines of:
“Is it okay that at least 17% of .download domains are abusive?”
To which the answer I believe is a clear: “Hell, no.”
The SpamHaus daily report can be found here.
Former Minds + Machines chair Fred Krueger has dropped his lawsuit against the company, which concerned “missing” shares.
M+M announced today that the two parties have signed a “tolling agreement”, which apparently leave the door open for Krueger to re-file the suit at a later date.
If he does re-file, the company has agreed to the date of the original suit being filed if it deploys any statute of limitations defenses.
The company said in a statement to investors:
The Tolling Agreement provides that if the plaintiffs refile their suit, that any statute of limitation defenses of the defendants will be based on the date of the filing of the dismissed suit, 23 February 2016, but will not be deemed to revive any of the plaintiffs’ causes of action, claims, rights, legal positions, or defenses, at law or in equity, that were time-barred prior to 23 February 2016.
Krueger sued claiming M+M or its accountants had misplaced five million shares he was due.
He was looking for $1.5 million in damages.
Londoners are going to the polls today to select a new mayor so, as a Londoner, I thought I’d check out how many of the candidates are supporting the local domain name.
Turns out four of the 12 candidates have registered .london domains for their campaign sites.
The remaining candidates, if they have dedicated sites at all, use a mixture of .com, .org and .net domains. Not a .uk to be seen.
Will this influence anybody’s vote? No. Has it raised the profile of .london domains? Probably.
Whoever wins the election will find themselves with a degree of control over the future of .london.
While the registry is basically managed by Minds + Machines, the ICANN contract is held by London & Partners, a not-for-profit promotional agency funded by the mayor’s office. The mayor is also a partner in the endeavor.
The M+M outsourcing contract was recently renegotiated in light of M+M’s financial woes, but details have not been made available.