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RightSide cuts super-premium fees in half, drops premium renewals

Kevin Murphy, January 11, 2017, Domain Registries

New gTLD registry RightSide has slashed the minimum price of its so-called “Platinum” tier premium domains and dropped renewal fees for these domains down to an affordable level.
The price changes come as part of two new marketing initiatives designed to start shifting more of its 14,000-strong portfolio of super-premiums through brokers and registrar partners.
The minimum first-year price of a Platinum-tier name has been reduced immediately from $50,000 to $25,000.
In addition, these domains will no longer renew every year at the same price. Instead, RightSide has reduced renewals to a more affordable $30.
“We weren’t selling them,” RightSide senior VP of sales and premiums Matt Overman told DI. “There is not a market for $50,000-a-year domain purchases.”
Now, “we feel comfortable enough with amount money we’re going to make up-front”, Overman said.
However, premium renewals are not being abandoned entirely; non-Platinum premium names will still have their original higher annual renewal fees, he said.
RightSide has sold some Platinum names in the five and six-figure range, but the number is quite small compared to overall size of the portfolio.
But Overman said that “none of them sold with a $50,000 renewal”. The highest renewal fee negotiated to date was $5,000, he said.
Before yesterday’s announcements, RightSide’s Platinum names were available on third-party registrars with buy-it-now fees that automatically applied the premium renewal fees.
However, it seems that the vast majority if not all of these sales came via the company’s in-house registrars such as Name.com and eNom, where there was a more flexible “make an offer” button.
Under a new Platinum Edge product, RightSide hopes to bring this functionality to its registrar partners.
It has made all 14,000 affected names registry-reserved as a result, Overman said. They were previously available in the general pool of unclaimed names and available to registrars via EPP.
Each affected name now has a minimum “access fee” of $25,000 (going up to $200,000 depending on name) that registrars must pay to release it.
They’re able to either negotiate a sale with a markup they can keep, or sell at “cost” (that is, the access fee) and claim a 10% commission, Overman said.
A separate Platinum Brokerage service has also been introduced, aimed at getting more professional domain brokers involved in the sales channel.
Brokers will be able to “reserve” up to five RightSide Platinum names for a broker-exclusivity period of 60 days, during which they’re expected to try to negotiate deals with potential buyers.
While no other brokers will be able to sell those names during those 60 days, registrars will still be able to sell those reserved names.
Overman said that if a registrar sells a name during the period it is under exclusivity with a participating broker, that broker will still get a commission from RightSide regardless of whether they were involved in the sale.
“We won’t give that name to any other broker, but if it sells through a registrar they still get their 10%,” he said. The registrar also gets its 10%.
This of course is open to gaming — brokers could reserve names and just twiddle their thumbs for 60 days, hoping to get a commission for no work — but the broker program is expected to be fairly tightly managed and those exploiting the system could be kicked out.
RightSide will be making the case for the two Platinum-branded offerings at the upcoming NamesCon conference in Las Vegas, where it also expects to name its first brokerage partners.

Buy a $10k .club, get a free T-shirt

Kevin Murphy, December 13, 2016, Domain Registries

.CLUB Domains will today release 9,200 previously reserved .club names into the channel at premium prices.
Club T-ShirtThe registry is also offering free T-shirts to the first 500 people to purchase a premium name for $59.99 and more, personalized with said name.
While the names will become available at 1500 UTC today, the full list is not expected to be published until midnight UTC at landrush.club
CMO Jeff Sass gave the following list of examples of names to be released: watches.club, vino.club, ocean.club, elite.club, driving.club, comicbook.club, Chinese.club and gambling.club.
A thousand of the names are three-character strings.
The first-year prices are suggest at between $100 and $10,000 at the retail level, Sass said.
All premium names renew at standard-name pricing, he said.
The T-shirt offer requires the user to tweet using promotional hashtags and expires December 31.

Domains “worth $3 million” put up for first industry hackathon

Kevin Murphy, April 12, 2016, Domain Services

The domain name industry is about to get a new type of conference.
Domain broker Ryan Colby of Outcome Brokerage is to host what is believed to be the first domain “hackathon”, and says he already has domains he estimates as being worth $3 million submitted for the event.
Codemology, as the conference will be called, will be held over two days in Charlotte, North Carolina, in October.
The idea is to bring the owners of premium domain names together with angel investors and young, skilled developers, with the hope that some workable business ideas might emerge.
“We are trying to utilize the ‘excess capacity’ of premium domains in the marketplace, which are just sitting there doing nothing, oozing with potential, waiting for the next killer idea,” Colby told DI today.
Over the weekend of the event, the goal will be to create a bunch of “minimal viable products” for each selected domain that could be developed further.
It’s a free event, but attendees need to go through an application process before being given tickets. Colby said he’s marketing the event at university students and those who regularly attend hackathons.
The list of domains that will be used has not been finalized yet, but Colby’s clients have already submitted at least four pretty terrific one-word dictionary .coms.
Domains in new gTLDs will also make an appearance.
“If you’re a domain owner, why not submit it to the kid from MIT who might have a winning idea? There’s no risk, and huge upside if something comes about,” Colby said.
The developers keep the IP rights to whatever they code during the event, he said.
“It’s up to the domain owner to choose to collaborate, buy their IP or walk away,” he said.
Colby said he’s working on an app that will allow people to vote on domains that have been submitted, with the most popular ones being used at Codemology.
He said he’s hopeful of running similar events in other cities after the Charlotte conference.

Rightside offers $10 renewals on premium names

Rightside is to run a promotion that will discount renewals on premium names down to .com prices.
From May 16 to June 30, if you buy any of the domains that Rightside has marked as premium — except the super-premium “Platinum” names — the wholesale renewal fee will be just $10.
Registrars will mark this up according to their own pricing models.
Normally, the price you pay at the checkout is the price you pay every year after that.
The deal is overtly targeted at domainers.
Rightside said: “At these reduced prices, you’ll have more time to find the right buyer for any domains you register, and incur lower fees to transfer to them once you do. If you’re looking to add high-quality domains to your portfolio, this will be the time to do it.”
The reduced renewals only apply to names registered during the six-week window, but they do pass on to subsequent registrants if the domain is sold.
Rightside is calling it a “first-of-its-kind” promo, but in reality it’s just a temporary regression to the once-standard industry model.
Remember, prior to the 2012-round gTLDs, only exceptions like .tv charged premium rates for renewals.
Premium renewals are now very commonplace, but are by no means the rule, in the new gTLD industry.
For Rightside, the offer means the company may experience a brief cash windfall as domainers, who generally hate premium renewals, take a chance on the registry’s names.
There’s also a potential marketing benefit to be gained from having more domainers on board as unpaid salespeople.
But it does rather suggest the premiums are not flying off the shelves at the rate Rightside wants.
The company recently disclosed that in the first few months of the year it made revenue of $674,610 selling 1,820 premium names, leading to an average price of $372. Twelve five-figure names had been sold.
Over its portfolio of 39 gTLDs, Rightside has flagged over 964,000 as premium, or about 25,000 per TLD.

Dot London auctioning 50 registry-owned premium names

Kevin Murphy, July 13, 2015, Domain Sales

Dot London is to auction off 50 premium .london domains over the next two weeks.
The names are all currently registry-owned, and include the likes of dentist.london, flats.london and coffee.london. The full list can be viewed here.
The auctions are scheduled to end on July 30 and all have £100 ($155) starting bids.
According to the registry, it has sold over 3,000 names from its premium list since its launch last year. Some live examples include golf.london and catering.london.
The .london gTLD has a tad over 63,000 names in its zone file today.

ICM claws back 68 .porn names it accidentally released

ICM Registry has recovered nine .porn and .adult domain names from their registrants after they were accidentally released into the market.
Domains such as ads.porn, hosting.adult and buy.porn were among those snapped up by registrants, despite the fact that they were supposed to be registry-reserved.
ICM CEO Stuart Lawley told DI that a list of 68 .porn/.adult names (34 strings in each of the two gTLDs) have been brought back into the registry’s portfolio.
Only nine had been registered in the less than 24 hours the names were in the available pool, he said.
Lawley said it was his own personal fault for not sending the reserved list to back-end provider Afilias.
The affected registrants have been offered a domain from ICM’s premium list up to the value of $2,500 for each of the names ICM took back, he said.
Only one registrant has so far declined the offer, Lawley said.
Konstantinos Zournas of OnlineDomain, who broke the news about ads.porn yesterday, identifies this former registrant as “James” and reported that he is taking legal advice.
This is not the first time that a registry has accidentally released reserved names into the pool, where they were subsequently snapped up by domainers.
In January, .CLUB Domains accidentally sold credit.club, a name it had planned to keep on its premium reserved list for $200,000, for $10.99.
In that case, .CLUB honored the purchase after the buyer agreed to develop the site, scoring many brownie points in the domain investor community.
Both .CLUB and ICM have terms in their agreements allowing domains accidentally released to be recovered.
In ICM’s case, the names it accidentally released were not premiums, but rather domains that the registry plans to use as part of its own business — not to be sold at any price.
It used buy.xxx as a cornerstone of its .xxx marketing, for example, and it plans to use buy.porn and buy.adult for the exact same purpose.

AIDS.sucks at $1.5 million and other .sucks premium weirdness

The new .sucks gTLD has some interesting pricing for its reserved premium names. Notably aids.sucks, which currently carries a $1.5 million first-year fee at one registrar.
As far as I can tell, 101domain is the only registrar that is currently publishing its prices for .sucks premium names.
I had a bit of a play around with its web site, to see if I could discover which strings the registry has flagged as premium and which appear to be blocked by the registry.
aids.sucks was the most expensive domain I found, by some margin, at $1.5 million.
The presumably puts it within the pocketbook of, say, a pharmaceuticals company, but probably not a support group.
101domain confirmed that the published price was not an error and is based on the registry’s pricing, but said it was considering lowering it.
That price, and all the other prices cited in this article, are retail prices that would include the registrar’s mark-up.
The next-highest price I could find was $450,000 for sex.sucks.
The string “sex” is usually highly priced on registries’ reserved lists. It’s a slightly different story for .sucks, however, because registry policy states that all pornography is banned. The registrant would have to find a different use.
porn.sucks does not appear to carry a premium fee.
I could not find any other physical diseases carrying premium fees, and it seems that cancer.sucks is not available to register.
However, anxiety.sucks is $4,500, depression.sucks is $12,000, and suicide.sucks is available for $16,500.
It’s worth noting at this point that .sucks is not alone in putting premium prices on domains such as these — suicide.club and aids.club both carry $5,500 fees, for example.
Sports domains baseball.sucks, football.sucks, soccer.sucks, basketball.sucks and hockey.sucks all carry $75,000 fees.
On the vices: poker.sucks is also $75,000, gambling.sucks is $42,000, beer.sucks is $27,000 and alcohol.sucks is $4,500. Other strings, such as casino.sucks, do not appear to be premiums.
This patchy premium coverage goes for entertainment too. While television.sucks ($88,500) and music.sucks ($15,000) are premiums, internet.sucks and radio.sucks are not.
In relationships, gay.sucks is listed at $27,000 (lesbian.sucks does not appear to be premium) and dating.sucks is $15,000.
I tried a few common racial slurs and found them to be unavailable. Vox Pop has a policy against cyber-bullying, which may account for that.
racism.sucks costs $52,500, however.
Religious terms blocked?
Some religious terms are considered premium, while others are not available to register.
.sucks is currently in its sunrise period, so unavailable names have presumably been blocked by the registry for some reason.
I found that christianity.sucks carries a premium price tag of $75,000, while church.sucks is $30,000 and christian.sucks is $34,500.
catholic.sucks is not available, nor are jesus.sucks, christ.sucks and moses.sucks.
But catholicism.sucks, protestant.sucks, methodist.sucks baptist.sucks, can be bought for the regular reg fee.
hindu.sucks, hinduism.sucks, buddhist.sucks and buddhism.sucks are all for sale at the usual price.
judaism.sucks and jews.sucks are available at the regular reg fee, but jew.sucks is not available.
islam.sucks, muslim.sucks and muslims.sucks are not currently available. Nor is muhammed.sucks. But mohammed.sucks and muhammad.sucks are available.
I wonder what we can fairly infer from these apparent discrepancies.
Registry defensives?
As you might expect, the name of the registry is reserved — that happens in pretty much ever gTLD.
It remains to be seen whether Vox Pop will eat its own dog food and allow third-party criticism on its site.
It turns out johnberard.sucks (Vox Populi CEO) is not available. Neither are the names of Rob Hall, CEO of Vox Pop parent Momentous, and Uniregistry CEO Frank Schilling, who is involved in the TLD is some currently undisclosed capacity.
rob.sucks, john.sucks and frank.sucks are all not available to register.
As controls, I checked out other common male first names and the full names of other major registry/registrar CEOs and found them all available.
It will be interesting to see if any of these names are ever developed into criticism web sites by their owners.

Donuts explains its premium pricing strategy

Kevin Murphy, December 17, 2013, Domain Registries

Add Donuts to the list of registries planning to use .tv-style variable pricing after their new gTLDs start to go to general availability next year.
COO Richard Tindal told DI last night that each of its upcoming registries could have “two, three, four, five, six — it varies — levels of buy-it-now pricing”.
He was referring to pricing during general availability, not any of Donuts’ special launch phases.
The actual number of registry-reserved names held for auction or future promotional purposes is likely to be quite small — often under 20 names per TLD — Tindal said.
Instead, Donuts wants to get the names it has identified as “premium” to market as quickly as possible, but with a higher annual price than the base registry fee. He said:

Let’s take .clothing, that’s coming out at the moment.
There’ll be a small — very small — number of reserved names for which we may do an auction later
The vast, vast majority of the names are first-come-first-served buy-it-now — but within Donuts TLDs, at more than one price within a TLD.
So in .clothing the standard names will be one price, then there’ll be another group of names that are premium for a higher price, and another group of names that are higher still that are premiums as well, and potentially even another group.

Tindal didn’t want to give specifics, but indicated that most premiums could carry an annual fee of under $1,000.
“Your ball-park standard name is a $10, $20, $30 name, ish, retail,” he said. “And your premium name is in the hundreds of dollars a year, typically. It varies.”
“Generally, ball-park-speaking, the vast majority of our names will be well, well under $1,000 a year,” he said.
He added that the tiers should be obvious when pre-registering names at one of Donuts’ accredited registrars.
I experimented a bit on 101domain, where the base retail price for a .clothing domain is currently $34.99 a year.
I found that used.clothing and winter.clothing, for example, both carry a $400 price tag, hot.clothing and large.clothing are $49.50 each, while vintage.clothing and designer.clothing appear to be reserved.
Those are the retail prices, of course, which include the registrar’s mark-up. While they’re for pre-registered names, I’m not expecting the GA prices to be much different.
“These are very attractively priced names, in our view, even the premium ones we think are attractive to people,” Tindal said. “We want registrars to make some margin, we want registrants to have room for the value of the name to increase as well.”
He didn’t say how many names will be in the higher pricing tiers — it will vary by gTLD.
“We believe premiums will be a small percentage of names under management,” he said.
The tiers will be the same across all of Donuts TLDs, he said, but each given TLD may only use a subset. So if there are six possible tiers, .example may only use three of them.
Donuts does not currently plan to operate a “founders program” for its gTLDs, Tindal said.
“We just want to get these names out and in the hands of users,” he said. Donuts’ market is primarily small and medium sized enterprises.
Donuts is not the first to reveal tiered pricing for new gTLD names.
Top Level Domain Holdings recently laid out a similar pricing strategy. Its Minds + Machines registrar is already taking pre-registrations on names with renewal fees ranging into many thousands of dollars per yer for premium names.
What Box and Plan Bee have also started selling pre-registrations via their registrars that indicate tiered pricing.
Prior to new gTLDs, the only notable TLD with variable pricing was Verisign’s repurposed ccTLD, .tv.

Go Daddy to take $2,500 profit on Donuts’ first-day domains

Kevin Murphy, December 11, 2013, Domain Registrars

Donuts’ pricey Early Access Program for its new gTLDs could prove quite lucrative for registrars.
Go Daddy today revealed that it’s charging $12,500 and up for first-day “priority” registrations in 14 Donuts gTLDs, a $2,500 profit on Donuts’ EAP registry fee, which I believe is $10,000.
The EAP is Donuts’ alternative to a traditional landrush period.
Rather than charging premium landrush fees and then running an auction for contested domains, every available domain has a standard premium buy-it-now price that is reduced every day for a week until the fee hits the standard reg fee.
It’s Dutch-auction-like, with a first-come-first-served component.
The EAP registry fees start at $10,000, go to $2,500 on day two, $950 on day three, $500 on day four and $100 from days five through day seven. Then they go to the base fee, which depends on gTLD but typically translates to about $40 at the check-out.
Go Daddy’s respective EAP retail prices are $12,539.99, $3,164.99, $1,239.99, $689.99 and $189.99.
Complicating matters, these are currently “priority pre-registration” fees, so the company will still have to successfully grab the pre-registered names from the registry when they become available.
While customers are billed today, they may not get the name they want. If Go Daddy fails to secure the name it will issue a full refund.
Complicating matters further, the company is accepting multiple pre-registrations on any given name and will auction it off to the highest bidder if more than one person pre-registers at the same level and Go Daddy manages to grab the name.
So $12,500 may just be the tip of the iceberg.
Complicating matters further further, Go Daddy’s site is currently not particularly clear — at least to this elderly hack — which components of its fees are refundable and which are not.
This slogan, currently in use on the Go Daddy pre-reg site, appears to me to be absolute nonsense.
Horseshit
The 14 Donuts gTLD currently on offer are: .estate, .photography, .ventures, .guru, .bike, .clothing, .gallery, .singles, .camera, .lighting, .plumbing, .equipment, .graphics and .holdings.

IPO warns about premium loopholes in new gTLD trademark protection

Kevin Murphy, December 4, 2013, Domain Policy

It seems like it’s been an age since we last heard the intellectual property lobby pushing for stronger rights protection mechanisms in new gTLDs, but they’re back just in time for the first launches.
The Intellectual Property Owners Association has written to ICANN this week to warn about loopholes in the standard new gTLD Registry Agreement related to premium name reservations that the IPO said “will adversely affect trademark rights holders”.
The letter (pdf) makes reference to two specific parts of the contract.
Specification 5 enables registries to reserve up to 100 names “necessary for the operation or promotion of the TLD” in section 3.2 and an unlimited number of names in section 3.3.
Section 3.3 is vague enough that I’m aware of new gTLD applicants that still don’t know whether it allows them to reserve an unlimited number of “premium” names or not.
However, most new gTLD registries I’ve talked to appear to be convinced that it does. DotKiwi’s recently announced premium plan seems to be taking advantage of 3.3.
The IPO is worried that massive lists of premium names will wind up containing lots of strings matching trademarks, which will prevent mark holders from defensively registering during Sunrise.
Worse, the IPO said it could lead to registries milking trademark owners for huge fees to register their “premium” marks. It said:

such reservations would invite the abuse of protected marks. For instance, Registry Operators may reserve the marks of protected brands to leverage premium sales. Further, Registry Operators may use this ability to release names to market competitors of the brand owners.

The counter argument, of course, is that owners of spurious trademarks on generic terms could game Sunrise periods to get their hands of potentially valuable domain names (cf. the .eu sunrise)
The IPO wants ICANN to expand the Trademark Clearinghouse to send Trademark Claims notices to new gTLD registries when they reserve a name matching a listed trademark.
It also wants a new dispute procedure that mark owners could use to get names released from reserved status. It would be like UDRP, but modified to allow for registries to reserve dictionary words related to their gTLD strings, the IPO said.
If my sense of the mood of ICANN’s leadership during last month’s Buenos Aires meeting is anything to go by, I can’t see these last-minute requests for changes to RPMs getting much traction, but you never know.