Latest news of the domain name industry

Recent Posts

ICA rallies the troops to defeat .org price hikes. It won’t work

Kevin Murphy, April 25, 2019, Domain Registries

Over 100 letters have been sent to ICANN opposing the proposed lifting of price caps in .org, after the Internet Commerce Association reached out to rally its supporters.

This is an atypically large response to an ICANN public comment period, and there are four days left on the clock for more submissions to be made, but I doubt it will change ICANN’s mind.

Almost all of the 131 comments filed so far this month were submitted in the 24 hours after ICA published its comment submission form earlier this week.

About a third of the comments comprise simply the unedited ICA text. Others appeared to have been inspired by the campaign to write their own complaints about the proposal, which would scrap the 10%-a-year .org price increase cap Public Interest Registry currently has in place.

Zak Muscovitch, ICA’s general counsel, told DI that as of this morning the form generates different template text dynamically. I’ve spotted at least four completely different versions of the letter just by refreshing the page. This may make some comments appear to be the original thoughts of their senders.

This is the original text, as it relates to price caps:

I believe that legacy gTLDs are fundamentally different from for-profit new gTLDs. Legacy TLDs are essentially a public trust, unlike new gTLDs which were created, bought and paid for by private interests. Registrants of legacy TLDs are entitled to price stability and predictability, and should not be subject to price increases with no maximums. Unlike new gTLDs, registrants of legacy TLDs registered their names and made their online presence on legacy TLDs on the basis that price caps would continue to exist.

Unrestrained price increases on the millions of .org registrants who are not-for-profits or non-profits would be unfair to them. Unchecked price increases have the potential to result in hundreds of millions of dollars being transferred from these organizations to one non-profit, the Internet Society, with .org registrants receiving no benefit in return. ICANN should not allow one non-profit nearly unlimited access to the funds of other non-profits.

The gist of the other texts is the same — it’s not fair to lift price caps on domains largely used by non-profits that may have budget struggles and which have built their online presences on the old, predictable pricing rules.

The issues raised are probably fair, to a point.

Should the true “legacy” gTLDs — .com, .net and .org — which date from the 1980s and pose very little commercial risk to their registries, be treated the same as the exceptionally risky gTLD businesses that have been launched since?

Does changing the pricing rules amount to unfairly moving the goal posts for millions of registrants who have built their business on the legacy rules?

These are good, valid questions.

But I think it’s unlikely that the ICA’s campaign will get ICANN to change its mind. The opposition would have to be broader than from a single interest group.

First, the message about non-profits rings a bit hollow coming from an explicitly commercial organization whose members’ business model entails flipping domain names for large multiples.

If a non-profit can’t afford an extra 10 bucks a year for a .org renewal, can it afford the hundreds or thousands of dollars a domainer would charge for a transfer?

Even if PIR goes nuts, abandons its “public interest” mantra, and immediately significantly increases its prices, the retail price of a .org (currently around $20 at GoDaddy, which has about a third of all .orgs) would be unlikely to rise to above the price of PIR-owned .ong and .ngo domains, which sell for $32 to $50 retail.

Such an increase might adversely affect a small number of very low-budget registrants, but the biggest impact will be felt by the big for-profit portfolio owners: domainers.

Second, letter-writing campaigns don’t have a strong track record of persuading ICANN to change course.

The largest such campaign to date was organized by registrars in 2015 in response to proposals, made by members of the Privacy and Proxy Services Accreditation Issues working group, that would have would have essentially banned Whois privacy for commercial web sites.

Over 20,000 people signed petitions or sent semi-automated comments opposing that recommendation, and ICANN ended up not approving that specific proposal.

But the commercial web site privacy ban was a minority position written by IP lawyers, included as an addendum to the group’s recommendations, and it did not receive the consensus of the PPSAI working group.

In other words, ICANN almost certainly would not have implemented it anyway, due to lack of consensus, even if the public comment period had been silent.

The second-largest public comment period concerned the possible approval of .xxx in 2010, which attracted almost 14,000 semi-automated comments from members of American Christian-right groups and pornographers.

.xxx was nevertheless approved less than a year later.

ICANN also has a track record of not acceding to ICA’s demands when it comes to changes in registry agreements for pre-2012 gTLDs.

ICA, under former GC Phil Corwin, has also strongly objected to similar changes in .mobi, .jobs, .cat, .xxx and .travel over the last few years, and had no impact.

ICANN seems hell-bent on normalizing its gTLD contracts to the greatest extent possible. It’s also currently proposing to lift the price caps on .biz and .info.

This, through force of precedent codified in the contracts, could lead to the price caps one day, many years from now, being lifted on .com.

Which, let’s face it, is what most people really care about.

Info on the .org contract renewal public comment period can be found here.

Nevett headhunts top execs from three rivals

Public Interest Registry has filled out its executive team by poaching senior staff from rivals Afilias, Donuts and Neustar.

Judy Song-Marshall of Neustar has joined as chief of staff, Joe Abley of Afilias is the new chief technology officer and Anand Vora has joined from Donuts as VP of business affairs.

They’re the first senior level appointments to be announced since Donuts co-founder Jon Nevett was appointed CEO three months ago.

PIR, the non-profit which runs .org and related gTLDs, has also let it be known that it’s looking for a chief financial officer. The job ad can be found here.

Nevett lands at PIR

Kevin Murphy, December 6, 2018, Domain Registries

Donuts alumnus Jon Nevett has been named the new CEO of Public Interest Registry.

Non-profit PIR, which runs .org and related gTLDs, said he will start in the role December 17.

Nevett was most recently executive VP at Donuts, the new gTLD registry he co-founded.

He left Donuts in October, not long after he cashed out when the company was sold to private equity firm Abry Partners.

The PIR corner office had been empty since May, after the unexpected and still unexplained resignation of Brian Cute.

Jay Daley, a member of the board of directors, was filling the role on an interim basis, but told us definitively in September that he was not interested in taking over permanently.

PIR chief: registries should stop stressing about volume

Kevin Murphy, September 11, 2018, Domain Registries

Public Interest Registry has announced some sweeping changes to how it markets .org and its other TLDs, with interim CEO Jay Daley telling DI that there’s too much focus on volumes in the industry today.

PIR is scrapping is volume discount programs after the current batch of incentives expires at the end of the year.

These are the programs that offer rebates to registrars if they hit certain performance targets, all based around newly created domains.

“They particularly favor large registrars, and we don’t think that’s appropriate going forward,” Daley told DI yesterday.

He said that when PIR removed some developed markets from its geographically-targeted discount programs, it saw creates go down but revenue improve.

He suggested that some registries have too much focus on volumes as a benchmark of success, failing to take account of important factors such as renews and abuse rates.

Part of the problem is that success is often measured (by folk including yours truly) by domains under management, rather than TLD health or revenue-per-domain.

“How many people are simply trying to get their numbers up without worrying about the underlying revenue, or taking a very low underlying revenue in order to get their numbers up?” Daley said.

“We’re not in any way somebody who is trying to get our numbers up at all costs, certainly not,” he said.

Another marketing program getting a makeover is pay-per-placement, where PIR would pay for prominent positions in the TLD drop-down menu of registrars storefronts.

These relationships have been based purely on new creates, Daley said, with appropriate “clawback” provisions when registrations turn out to be predominantly abusive.

In future, PIR intends to take a “longer-term, hygiene oriented view” of how its marketing money is used, making better use of data, he said.

“We need to be looking more at the quality of the registrations we get, the level of technical abuse generated by those registrations, looking at the renewal rates that come from those registrations,” he said.

PIR has a new four-strong channel services team that will be leading these changes.

“We are a public interest organization and need to take a public interest view on everything we do,” Daley said. “We need to be looking at our promotions for more than just commercial reasons, we need to be looking at public interest reasons as well.”

Daley, who ran New Zealand’s .nz registry from 2009 until this January, said that the big changes he is overseeing do not reflect an attempt to put his stamp on PIR and take over the CEO office on a permanent basis.

He does not want to run a registry and does not want to relocate to PIR’s headquarters in Virginia, he said.

“I’ve been a registry CEO for nine years,” he said. “I’ve done this and it’s time for me to look at other things.”

He also sits on PIR’s board of directors.

Neustar swaps out CEO, PIR looking for new CEO

There are to be changes at the top at two of the industry’s stalwarts.

Neustar has announced that eight-year CEO Lisa Hook has stepped aside to be replaced by Charles Gottdiener, who comes from the world of private equity.

He was most recently COO and MD at Providence Equity Partners.

Hook, who became CEO in 2010, will remain on the Neustar board of directors.

Neustar, which manages .biz, .co and many dot-brand gTLDs, is now owned by private equity group Golden Gate Capital, with a minority ownership by Singapore-based investor GIC, following a $2.9 billion deal last year.

Meanwhile, Public Interest Registry has started advertising for a new CEO of its own, following the mysterious resignation of Brian Cute in May. PIR runs .org and related gTLDs.

PIR said its new boss will need “excellent organizational, strategic planning, financial management and diplomatic skills”.

If it sounds like you, you have a few days to get your application in.