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DropCatch spends millions to buy FIVE HUNDRED more registrars

Kevin Murphy, December 2, 2016, Domain Registrars

Domain drop-catching service DropCatch.com has added five hundred new registrar accreditations to its stable over the last few days.

The additions give the company a total accreditation count of at least 1,252, according to DI data.

That means about 43% of all ICANN-accredited registrars are now controlled by just one company.

DropCatch is owned by TurnCommerce, which is also parent of registrar NameBright and premium sales site HugeDomains.

Because gTLD registries rate-limit attempts to register names, drop-catchers such as DropCatch find a good way to increase their chances of registering expiring names is to own as many registrars as possible.

DropCatch is in an arms race here with Web.com, owner of SnapNames and half-owner of NameJet, which has about 500 registrars.

The new accreditations would have cost DropCatch $1.75 million in ICANN application fees alone. They will add $2 million a year to its running costs in terms of extra fixed fees.

That’s not counting the cost of creating 500 brand new LLC companies — named in the new batch DropCatch.com [number] LLC where the number ranges from 1046 to 1545 — each of which is there purely for the purpose of owning the accreditation.

In total, the company is now paying ICANN fixed annual fees in excess of $5 million, not counting its variable fees and per-transaction fees.

Because the ICANN variable fee is split evenly between all registrars (with some exceptions I don’t think apply to DropCatch), I believe the addition of 500 new registrars means all the other registrars will be paying less in variable fees.

There’s clearly money to be made in expiring names.

Famous Four VP goes solo, claims $400,000 sale

Kevin Murphy, September 22, 2016, Domain Services

Former Famous Four Media VP of sales Richard Downs has launched a new consultancy business aimed at new gTLD registry operators.

The new company, GTLD Systems is offering a multitude of services but is mainly a way for smaller registries to outsource their sales and marketing operations.

Downs told DI an early success was a recent $400,000 deal, selling a few FFM premiums (in .review and .download) to a single end user. He says he has a pipeline that he hopes will bring his total sales to $1 million before the end of the year.

He said he’s sold over $3 million in premiums over the last few years at FFM.

Spain-based Downs said that he has three employees, one a Chinese-speaker, in three different western-European countries.

Among the services on offer are premium list creation and sales, registrar channel management, Chinese regulatory approval consulting, supplier negotiations and marketing consulting.

Downs was with FFM for about three years. Before that, he was in digital recruitment.

Uniregistry to release 10 million domains on October 4

Kevin Murphy, September 20, 2016, Domain Registries

Uniregistry plans to release millions of registry-reserved domain names, many at standard registration fee, two weeks from now.

The company, which has about 25 new gTLDs in its stable, will release 10 million currently reserved names on October 4, CEO Frank Schilling told DI.

The revelation follows news that the company has started allowing thousands of registry-owned domains to expire and return to the available pool.

About 200,000 domains originally registered to North Sound Names, a separate Schilling-controlled company, are being made available via regular channels.

Those domains were registered (rather than reserved) so that Uniregistry could throw up landing pages inviting potential buyers to make offers. After they drop, they will no longer resolve.

But Schilling said a further 9.8 million names will also hit the market next month.

“It’s just a much better time because we have greater distribution and we are less likely to see all our names taken at land rush by one or two commercial registrants,” he said.

“We are unblocking and deleting 10 million domain names and making them available for registration through more than 200 registrars,” he said.

“Almost all will be standard reg [fee],” he said, when asked about pricing. Others will carry premium fees.

A web site publishing lists of newly released names will go live in about a week, he said.

DNW has previously reported that Uniregistry plans to release names that were initially blocked due to ICANN’s name collisions mitigation plan.

Those lists (which are usually mostly junk) are already published by ICANN and can be found accompanying the Registry Agreement for the relevant TLD linked from this page. Here’s the 35,000-name .link collisions list (.csv) for example.

Priced to sell: $46m of two-letter .xxx names

Kevin Murphy, January 7, 2016, Domain Registries

ICM Registry has added over 1,200 two-character .xxx names to its catalog of priced premiums.

With prices ranging from $100,000 to $37,500, the newly offered domains carry a total ticket price of over $46 million.

The only six-figure name on the list is vr.xxx. ICM said in a press release today it has already sold vr.porn and vr.sex for $100,000 apiece.

There are seven names with adult connotations (such as 69.xxx and bj.xxx) priced at $75,000, eight more at $50,000 and two at $40,000.

The rest of the list of 1,227 names are being offered at $37,500, which is roughly 10 times the prices on the equivalent .porn, .sex and .adult domains.

While ICM noted the interest in domain investing from China recently, it does not appear to have valued its numeric-only domains (such as 88.xxx) any more highly than less attractive-looking combinations (such as 0o.xxx).

Judging by the list published on ICM’s web site, it has already sold well over 300 two-character domains in its newest three gTLDs.

Had those sold at the buy-now prices it would have raised over $1.1 million in revenue.

But ICM since September has been offering an option to register premium names for premium annual fees that are lower than the one-off price. A $37,500 domain costs $3,000 a year to register, under this model.

The total value of ICM’s premium list, including all the longer domains, is roughly $115 million.

Famous Four following .sucks playbook with premium pricing for brands?

New gTLD registry Famous Four Media has slapped general availability prices of $500 and up on domain names matching famous brands.

The company plans to shortly introduce eight “premium” pricing tiers, ranging from $200 a year to $10,000 a year.

The first to launch, on July 8, will be its “brand protection tier”, which will carry a $498 registry fee.

Famous Four told its registrars that the tier “will provide an additional deterrent to cyber-squatters for well-known brands ensuring that domain names in this tier will not be eligible for price promotions”.

The gTLDs .date, .faith and .review will be first to use the tiered pricing structure.

It’s not entirely clear what brands will be a part of the $498 tier, or how the registry has compiled its list, but registrars have been given the ability to ask for their clients’ trademarks to be included.

I asked Famous Four for clarification a few days ago but have not yet had a response.

While other registries, such as Donuts, used tiered pricing for GA domains, I’m only aware of one other that puts premium prices on brands: .sucks.

Vox Populi has a trademark-heavy list of .sucks domains it calls Market Premium — formerly Sunrise Premium — that carry a $1,999-a-year registry fee.

Unlike Vox Pop, Famous Four does not appear to be planning a subsidy that would make brand-match domains available at much cheaper prices to third parties.

Famous Four’s gTLDs have seen huge growth in the last month or two, largely because it’s been selling domains at a loss.

.science, for example, has over 300,000 registrations — making it the third-largest new gTLD — because Famous Four’s registry fee has been discounted to just $0.25 from May to July.

The same discount applies to .party (over 195,000 names in its zone) and .webcam (over 60,000).

Those three gTLDs account for exactly half of the over 22,000 spam attacks that used new gTLD domains in March and April, according to Architelos’ latest abuse report.

With names available at such cheap prices, it would not be surprising if cybersquatters are abusing these gTLDs as much as the spammers.

Will intellectual property owners believe a $498+ reg fee is a useful deterrent to cybersquatting?

Or will they look upon this move as “predatory”, as they did with .sucks?

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