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Radix acquires another gTLD

Kevin Murphy, October 7, 2019, Domain Registries

Radix has added the 10th new gTLD to its portfolio with an acquisition last month, bringing its total TLD stable to 11.

The company has acquired .uno from Missouri-based Dot Latin LLC for an undisclosed amount.

.uno, which of course means “one” in Spanish, has been around for over five years but has struggled to grow.

It’s current ranked as the 131st largest new gTLD, with 16,271 domains in its zone file. It peaked at about 22,000 about three years ago.

That said, it appears to have rather strong renewals, at least by Radix standards, with no evidence of relying on discounts or throwaway one-year registrations for growth.

.uno names can currently be obtained for roughly $12 to $20 per year.

Radix said its expects to migrate the TLD off its current Neustar back-end onto long-time registry partner CentralNic by “early 2020”.

The company appears to be excited that its only the second three-letter TLD in its portfolio.

It already runs .fun, along with the likes of .website, .tech and .online. It also runs .pw, the repurposed ccTLD for Palau.

.uno was Dot Latin’s only gTLD, though affiliated entity Dot Registry LLC signed its ICANN registry agreement for .llp (for “Limited Liability Partnership”) in August. That TLD has yet to launch.

.tech gTLD startups “raise $2 billion”

Kevin Murphy, August 28, 2019, Domain Registries

Tech startups using domain names in the .tech gTLD have raised $2 billion in venture capital financing over the last two years, according to Radix.

The registry looked at startups listed on Crunchbase as of June and found 650 companies using .tech domains. Of these, 170 of them had raised $2 billion in funding.

About 250 TLDs are in use by Crunchbase-listed startups, according to Radix.

According to a list provided by the company, funding amounts range from a modest $50,000 (obtained by the likes of the VR firm at virtualspaces.tech) to $620 million (obtained by the self-driving car company at aurora.tech).

Not every company on the list is still in business (if name resolution is any guide), and some of the .tech names bounce visitors to longer .com domains.

Meanwhile, domainer Morgan Linton has done a bit of similar research and discovered that 43% of the “top pick” startups appearing at Disrupt, the conference that like Crunchbase is owned by TechCrunch, are not using .com domains.

It’s a smaller sample size, but according to Linton, 18% of them use .io names. Most of the non-coms are on ccTLDs, in fact. The only new gTLD on his list is Google’s .app.

Disrupt made headlines in the domain world in 2010 when it launched its first conference web site on a .co domain, to coincide with the international launch of Colombia’s ccTLD by .CO Internet.

But that marketing deal lapsed after a year. Disrupt is back on techcrunch.com and disrupt.co is back in registry hands as a “premium” reserved name.

.co still appears on Linton’s list, however, so the initial partnership may still be bearing fruit.

Radix releases huge amount of premium domain data

Radix made $1,360,865 from premium domain names in its portfolio of new gTLDs in the first half of the year, according to the company’s latest report.

The company said that $522,365 of that came from new registrations — there were 619 in total — with the balance of $838,500 coming from renewals.

Radix is one of the registries that charges a premium fee every year over the life of the registration.

Because of this, its first-year renewal rates for premiums are not fantastic — just 54% of names registered in the first half of 2018 were renewed a year later.

But older premiums renewed at a more-than-respectable 78%, comparable to peak-.com, according to the Radix report.

.store and .online accounted for about half of renewal revenue.

.online and .tech accounted for more than half of new registration revenue.

GoDaddy sold 41.6% of all the names moved in the half.

For Radix, a premium domain is anything priced at $100 or above. That’s lower than some gTLDs’ base non-premium fee.

It sold three names at $10,000 during the period.

Cloudflare “bug” reveals hundreds of secret domain prices

The secret wholesale prices for hundreds of TLDs have been leaked, due to an alleged “bug” at a registrar.

The registry fees for some 259 TLDs, including those managed by Donuts, Verisign and Afilias, are currently publicly available online, after a programmer used what they called a “bug” in Cloudflare’s API to scrape together price lists without actually buying anything.

Cloudflare famously busted into the domain registrar market last September by announcing that it would sell domains at cost, thumbing its nose at other registrars by suggesting that all they’re doing is “pinging an API”.

But because most TLD registries have confidentiality clauses in their Registry-Registrar Agreements, accredited registrars are not actually allowed to reveal the wholesale prices.

That’s kind of a problem if you’re a registrar that has announced that you will never charge a markup, ever.

Cloudflare has tried to get around this by not listing its prices publicly.

Currently, it does not sell new registrations, instead only accepting inbound transfers from other registrars. Registry transaction reports reveal that it has had tens of thousands of names transferred in, but has not created a significant number of new domains.

(As an aside, it’s difficult to see how it could ever sell a new reg without first revealing its price and therefore breaking its NDAs.).

It appears that the only way to manually ascertain the wholesale prices of all of the TLDs it supports would be to buy one of each at a different registrar, then transfer them to Cloudflare, thereby revealing the “at cost” price.

This would cost over $9,500, at Cloudflare’s prices, and it’s difficult to see what the ROI would be.

However, one enterprising individual discovered via the Cloudflare API that the registrar was not actually checking whether they owned a domain before revealing its price.

They were therefore able to compile a list of Cloudflare’s prices and therefore the wholesale prices registries charge.

The list, and the script used to compile it, are both currently available on code repository Github.

The bulk of the list comprises Donuts’ vast portfolio, but most TLDs belonging to Afilias (including the ccTLD .io), XYZ.com and Radix are also on there.

It’s not possible for me to verify that all of the prices are correct, but the ones that are comparable to already public information (such as .com and .net) match, and the rest are all in the ballpark of what I’ve always assumed or have been privately told they were.

The data was last refreshed in April, so without updates its shelf life is likely limited. Donuts, for example, is introducing price increases across most of its portfolio this year.

After $30 million deal, is a .voice gTLD now inevitable?

Do big second-level domain sales translate into new gTLD success, and does the record-breaking $30 million sale of voice.com this week make a .voice gTLD inevitable?

The answers, I believe, are no and maybe.

Before the 2012 new gTLD application round, one way applicants picked their strings was by combing through the .com zone file to find frequently-occurring words that terminated the second level string.

This is where we get the likes of .site and .online from Radix and much of Donuts’ portfolio.

But applicants also looked at lists of high-priced secondary market sales for inspiration.

This is where we get the likes of .vodka, from MMX.

The latter strategy has seen mixed-to-poor results.

Five of the top domain sales, as compiled by Domain Name Journal, were not eligible for gTLD status are they are too short.

Of the remaining 15 strings, “sex” (which occurs twice), “fund”, “porn”, “toys” and “vodka” were all applied for in 2012 and are currently on sale.

The strings “clothes” and “diamond” do not appear as gTLDs, but Donuts runs both .clothing and .diamonds.

Not delegated in any fashion are “porno” (unless you count it as a derivative of “porn”), “slots”, “tesla”, “whisky” and “california”. A company called IntercontinentalExchange runs .ice as a dot-brand.

As well as .clothing and .diamonds, .fund and .toys are both also Donuts TLDs. None of them are doing spectacularly well.

At the lower end, .diamonds currently has fewer than 3,000 domain under management, but has a relatively high price compared to the the higher-volume TLDs in Donuts’ stable.

At the high-volume end, .fund has just shy of 16,000 names and .clothing has about 12,000.

Judging by their retail prices, and the fact that Donuts benefits from the economies of scale of a 240-strong TLD portfolio, I’m going to guess these domains are profitable, but not hugely so.

If we turn our attention to .vodka, with its roughly 1,500 domains, it seems clear that MMX is barely covering the cost of its annual ICANN fees. Yet vodka.com sold for $3 million.

So will anyone be tempted to apply for .voice in the next gTLD application round? I’d say it’s very possible.

First, “voice” is a nice enough string. It could apply to telephony services, but also to general publishing platforms that give their customers a “voice”. I’d say it could gather up enough registrations to fit profitably into a large portfolio, but would not break any records in terms of volume.

But perhaps the existence of voice.com buyer Block.one as a possible applicant will raise some other applicants out of the woodwork.

Block.one, which uses a new gTLD and an alt-ccTLD (.io) for its primary web sites, is certainly not out-of-touch when it come to alternative domain names.

Could it apply for .voice, and if it does how much would it be willing to spend to pay off rival applicants? It still apparently has billions of dollars from its internet coin offering in the bank.

How much of that would it be prepared to pay for .voice at private auction?

That prospect alone might be enough to stir the interest of some would-be applicants, but it has to be said that it’s by no means certain that the highly gameable application process ICANN deployed in 2012 is going to look the same next time around.

Did Roussos pull off the impossible? Google, Donuts, Radix all drop out of .music race

Google won’t be the registry for the .music gTLD.

The company, along with pure-play registries Donuts and Radix, late last week withdrew their respective applications from the .music contention set, leaving just three possible winners in the running.

Those are Amazon, MMX, and DotMusic, the company run by long-time .music fanboy Constantinos Roussos.

As I blogged last week, applications from Domain Venture Partners and Far Further have also been withdrawn.

I suspect, but do not know for a fact, that the contention was settled with a private deal, likely an auction, recently.

The logical guess for a winner would be Amazon, if only because of the nexus of its business to the music industry and the amount of money it could throw at an auction.

But I’m beginning to suspect that DotMusic might have prevailed.

The company appears to have recently revamped its web site, almost as if it’s gearing up for a launch.

Comparing the current version of music.us to versions in Google’s cache, it appears that the site has been recently given a new look, new copy and even a new logo.

It’s even added a prominent header link inviting prospective resellers to sign up, using a form that also appears to have been added in the last few weeks.

These changes all seem to have been made after the crucial ICANN vote that threw out the last of DotMusic’s appeals, March 14.

Are those the actions of an applicant resigned to defeat, or has Roussos pulled off the apparently impossible, defeating two of the internet’s biggest companies to one of the industry’s most coveted and controversial strings?

Participants in gTLD auctions typically sign NDAs, so we’re going to have to wait a bit longer (probably no more than a few days) to find out which of the remaining three applicants actually won.

Radix sees revenue up 30%

Kevin Murphy, March 12, 2019, Domain Registries

New gTLD registry Radix said today that its revenue increased by 30% in 2018, largely due to an end-of-year boost.

The company, which runs nine gTLDs including .online and .site, said that gross revenue was $16.95 million last year.

It added that net profit was up 45.6%, but the privately held company does not actually disclose the dollar value of its bottom line.

Radix said that the fourth quarter of the year, which presumably saw the benefits of Operation September Thrust, was its strongest quarter.

The company said that 27% of its revenue came from standard-price new registrations and 60% from renewals.

Its premiums brought in $1.9 million, 56% of which were premium renewals.

Operation September Thrust leads to another million-domain Radix gTLD

Kevin Murphy, February 4, 2019, Domain Registries

Radix has become the first new gTLD portfolio registry to hit over one million domains in more than one TLD.

It said today that .site has crossed the seven-digit threshold, joining .online, which hit a million names in 2018.

It’s huge recent growth for .site, which had around 561,000 domains under management at the end of September.

Radix CEO Sandeep Ramchandani told DI today that the rapid uptick comes as a result of a marketing program internally code-named “September Thrust”.

This involved promotional pricing — Ramchandani said the cheapest a .site could have been obtained would be about $0.99 — and joint-marketing efforts with multiple registrars.

This mostly involved plugs on registrar home pages, email shots, and promotion in the “check availability” part of registrar storefronts, he said.

The latest transaction reports filed with ICANN show .site grew by about 120,000 DUM in October, with West.cn, NameCheap and Network Solutions (Web.com) the biggest beneficiaries.

NetSol’s .site DUM actually grew by about 10x in the month.

The $1 retail pricing was apparently available at some registrars prior to September, and continues to exist on storefronts today.

Radix now has China approval for whole TLD stable

Kevin Murphy, January 3, 2019, Domain Services

Radix’s entire portfolio of new gTLDs is now approved for sale and use in China, according to the company.

The company said today that .host, .press, .space and .website recently received the nod from the Ministry of Industry and Information Technology, which regulates the domain name space in China.

.fun, .site, .online, .tech and .store have all previously received approval.

Across the three-million-domain portfolio, over 700,000 are registered in China, according to Radix.

It saw growth in China over over 30% in 2018 in terms of new domain adds, the company said in a press release.

CEO Sandeep Ramchandani said that Radix has partnered with local registrar Xinnet to give free domains to university students to “host their academic projects and business prototypes.”

Verisign says Afilias tried to “rig” $135 million .web auction

Kevin Murphy, December 17, 2018, Domain Services

Verisign has jumped back into the fight for the .web gTLD, all guns blazing, with a claim that Afilias offered millions in an attempt to “rig” a private auction for the string.

The .com behemoth accused Afilias last week of “collusive and anti-competitive efforts to rig the [.web] auction in its favor”.

It claims that Afilias offered rival bidder — and secret Verisign stooge — Nu Dot Co up to $17 million if it would participate in a private auction, and then tried to contact NDC during the auction’s “Blackout Period”.

The claims came in an amicus brief (pdf) filed by Verisign as part of Afilias’ Independent Review Process proceeding against ICANN.

The IRP is Afilias’ attempt to overturn the result of the July 2016 .web auction, in which NDC paid ICANN $135 million of Verisign’s money in exchange for the exclusive rights to .web

While neither Verisign nor NDC are parties to the IRP, they’re both attempting to become amicus curiae — “friends of the court” — giving them the right to provide evidence and arguments to the IRP panel.

Verisign argues that its rights would be seriously impacted by the proceeding — Afilias is looking for an emergency ruling preventing .web being delegated — because it won’t be able to bring .web to market.

But it’s also attempting to have the IRP thrown out altogether, on the basis of claims that Afilias broke the auction rules and has “unclean hands”.

Verisign’s brief states:

Afilias and other bidders proposed that a private auction be performed pursuant to collusive and potentially illegal terms about who could win and who would lose the auction, including guarantees of auction proceeds to certain losers of the auction.

NDC CFO Jose Rasco provides as evidence screenshots (pdf) of a text-message conversation he had with Afilias VP of sales Steve Heflin on June 7, 2016, in which Heflin attempts to persuade NDC to go to a private auction.

Every other member of the contention set at that point had agreed to a private auction, in which the winning bid would be shared out among the losers.

NDC was refusing to play along, because it had long ago secretly agreed to bid on behalf of Verisign, and was forcing a last-resort ICANN auction in which ICANN would receive the full sum of the winning bid. 

In that SMS conversation, Heflin says: “Can’t give up…how about I guarantee you score at least 16 mil if you go to private auction and lose?” followed by three money-bag emojis that I refuse to quote here on general principle.

Rasco responds with an offer to sell Afilias the .health gTLD, then just weeks away from launch, for $25 million.

Heflin ignores the offer and ups his .web offer to $17.02 million.

Given that it was a contention set of seven applicants, that suggests Afilias reckoned .web was going to sell for at least $100 million.

Verisign claims: “Afilias’s offers to ‘guarantee’ the amount of a payment to NDC as a losing bidder are an explicit offer to pay off NDC to not compete with Afilias in bidding on .web.”

Rasco also provides evidence that Schlund, another .web applicant, attempted to persuade NDC to join what it called an “Alternative Private Auction”.

This process would have divided bidders into “strong” and “weak” categories, with “strong” losing bidders walking away with a greater portion of the winning bid than the “weak” ones.

Verisign and NDC also claims that Afilias broke ICANN’s auction rules when VP John Kane texted Rasco to say: “If ICANN delays the auction next week would you again consider a private auction?”

That text was received July 22, four days before the auction and one day into the so-called “Blackout Period”, during which ICANN auction rules (pdf)  prohibit bidders from “cooperating or collaborating” with each other.

At that time, .web applicants Schlund and Radix already suspected Verisign was bankrolling NDC, and they were trying to get the auction delayed.

According to Verisign, Kane’s text means Afilias violated the Blackout rules and therefore it should lose its .web application entirely.  

The fact that these rules proscribe “collaborating” during the Blackout suggests that collaborating at other times was actually envisaged, which in turn suggests that Heflin’s texts may not be as naughty as Verisign claims.

Anyway, I think it’s fair to say the gloves, were they ever on, have come off.

Weighing in at over 1,000 pages, the combined amicus briefs and attached exhibits reveal some interesting additional facts that I don’t believe were in the public domain before now and may be worth noting here.

The Verisign filing reveals, I believe for the first time, that the final Verisign bid for .web was $142 million. It only paid $135 million because that was runner-up Afilias’ final bid.

It also reveals that Verisign and NDC signed their “executory agreement” — basically, NDC’s promise to sign over .web if Verisign bankrolled its bid — in August 2015, nearly a year before the auction took place. NDC evidently kept its secret for a long time before rivals got suspicious.

The IRP panelist is scheduled to rule on Afilias’ request for a “stay of all ICANN actions that further the delegation of the .WEB gTLD” on January 28.