MMX’s year marked by terrible renewals

MMX saw its revenue dip in 2020, and it reported shocking renewal rates at two of its highest-volume gTLDs, according to the company’s annual financial results, published this morning.

The portfolio registry, which is in the process of selling off essentially its entire operating business to GoDaddy, reported revenue of $16.8 million for the year, down from $17.2 million in 2019.

Profit was up very slighty, to $2.9 million from $2.8 million.

The 2019 results included a few one-off gains, including $588,000 from losing a new gTLD auction, which accounted for most of the 2020 revenue decline.

But the company also reported a 19% decline in domains under management, from 2.46 million to 1.99 million, based on some terrible renewal rates in its .vip and .work gTLDs.

The DUM decline can be attributed mostly to .vip, a popular TLD among Chinese speculators, which started 2020 with around 1.4 million domains but finished the year with just over a million.

.work actually ended the year up on where it started, with around 709,000 names under management.

But MMX today disclosed that the renewal rates for .vip and .work were 36% and 18% respectively. In a business where 70%+ is considered healthy, these are some poor numbers indeed.

However, the company discontinued first-year promotions on these TLDs in 2020, focusing instead on selling domains likely to lead to recurring renewal revenue, which lead to 14% (.vip) and 19% (.work) increases in revenue.

Fewer domains. More money.

MMX said that it is seeing these trends continuing into 2021. Public transaction reports show both these TLDs losing 40-50,0000 names in January. The company expects revenue to fall 4% in the first quarter compared to Q1 2020.

One bright spot appears to be “The Great Relese”, the company’s move last month to mark down hundreds of thousands of premium-priced domains. That’s brought in $170,000 since its April 23 launch.

One basket where the company is placing a lot of its eggs is AdultBlock, the trademark protection service it inherited when it acquired ICM Registry a few years back. It enables customers to block their brands in .xxx, .porn, .adult and .sex without actually having to register the names.

The 10-year period ICM allowed brands to block when it launched in 2011 is coming to an end, so MMX is banking on renewals (which retail at $349 to $799 per year before multi-year discounts) to boost revenue.

“While it is early in the AdultBlock Sunrise B renewal period, we are encouraged by Registrar interest and some early sales of this product,” CEO Tony Farrow said in a statement.

This reliance on AdultBlock for short-term organic growth was one of the reasons MMX is selling up to GoDaddy.

The market-leading registrar and fast-emerging registry consolidator agreed to pay $120 million for MMX’s portfolio, which will leave MMX as a shell company only long enough to distribute the cash to investors before fading away quietly.

That deal has an August deadline to close and is dependent on approvals from business partners, ICANN and the Chinese government.

Eight more gTLDs get Chinese licenses

Radix and MMX have had four new gTLDs each approved for use in China.
MMX has had .work, .law, .beer and .购物 (Chinese for “shopping”) approved by the Ministry of Industry and Information Technology.
Radix gained approval for .fun, .online, .store and .tech.
The approvals mean that Chinese customers of Chinese registrars will be able to actually use domains in these TLDs rather than just registering them and leaving them barren.
It also means the respective registries have to apply more stringent controls on Chinese registrants.
They’re the first new gTLDs to get the nod from MIIT since April.
Only a couple dozen Latin-script new gTLDs have been given regulatory approval to operate fully in China.
MMX’s biggest success story to date, .vip, is almost entirely beholden to the Chinese market. Before today, it was also the only gTLD in its portfolio to pass the MIIT test.
The company said in a statement it has another four strings going through the approval process.
Radix already had .site on sale in China with government approval.

Architelos: shadiest new gTLD is only 10% shady

Disputing the recent Blue Coat report into “shady” new gTLDs, domain security firm Architelos says that the shadiest namespace is just under 10% shady.
That’s a far cry from Blue Coat’s claim earlier this week that nine new gTLDs are 95% to 100% abusive.
Architelos shared with DI a few data points from its NameSentry service today.
NameSentry uses a metric the company calls NQI, for Namespace Quality Index, to rank TLDs by their abuse levels. NQI is basically a normalized count of abusive domains per million registered names.
According to Architelos CEO Alexa Raad, the new gTLD with the highest NQI at the end of June was .work.
Today’s NameSentry data shows that .work has a tad under 6,900 abusive domains — almost all domains found in spam, garnished with just one suspected malware site — which works out to just under 10% of the total number of domains in its zone file.
That number is pretty high — one in 10 is not a figure you want haunting your registry — but it’s a far cry from the 98.2% that Blue Coat published earlier this week.
Looking at the numbers for .science, which has over 324,000 names in its zone and 15,671 dodgy domains in NameSentry, you get a shadiness factor of 4.8%. Again, that’s a light year away from the 99.35% number published by Blue Coat.
Raad also shared data showing that hundreds of .work and .science domains are delisted from abuse feeds every day, suggesting that the registries are engaged in long games of whack-a-mole with spammers.
Blue Coat based its numbers on a sampling of 75 million attempted domain visits by its customers — whether or not they were valid domains.
Architelos, on the other hand, takes raw data feeds from numerous sources (such as SpamHaus and SURBL) and validates that the domains do actually appear in the TLD’s zone. There’s no requirement for the domain to have been visited by a customer.
In my view, that makes the NameSentry numbers a more realistic measurement of how dirty some of these new gTLDs are.

M+M sells net.work for $100,000

Minds + Machines has made its first six-figure new gTLD domain sale.
The domain net.work was sold in a private deal to business consultancy BearingPoint for $100,000, the company said today.
It added that a “significant annual renewal fee” applies.
It’s one of 430 premium domains to have been sold in .work, M+M said, since it went to general availability in February.
The gTLD had just shy of 55,000 domains in its zone file yesterday, recent growth partly attributable to a deep discounting program.
M+M’s registrar currently sells .work domains for less than $2.

TLDH applies for 92 gTLDs, 68 for itself

Top Level Domain Holdings is involved in a grand total of 92 new generic top-level domain applications, many of them already known to be contested.
Sixty-eight applications are being filed on its own behalf, six have been submitted via joint ventures, and 18 more have been submitted on behalf of Minds + Machines clients.
Here’s the list of its own applications:

.abogado (Spanish for .lawyer), .app, .art, .baby, .beauty, .beer, .blog, .book, .casa (Spanish for .home), .cloud, .cooking, .country, .coupon, .cpa, .cricket, .data, .dds, .deals, .design, .dog, .eco, .fashion, .fishing, .fit, .flowers, .free, .garden, .gay, .green, .guide, .home, .horse, .hotel, .immo, .inc, .latino, .law, .lawyer, .llc, .love, .luxe, .pizza, .property, .realestate, .restaurant, .review, .rodeo, .roma, .sale, .school, .science, .site, .soccer, .spa, .store, .style, .surf, .tech, .video, .vip, .vodka, .website, .wedding, .work, .yoga, .zulu, 网址 (.site in Chinese), 购物 (.shopping in Chinese).

There’s a lot to note in that list.
First, it’s interesting to see that TLDH is hedging its bets on the environmental front, applying for both .eco (which we’ve known about for years) and .green.
This puts it into contention with the longstanding Neustar-backed DotGreen bid, and possibly others we don’t yet know about, which should make for some interesting negotiations.
Also, both of TLDH’s previously announced Indian city gTLDs, .mumbai and .bangaluru, seem to have fallen through, as suspected.
Other contention sets TLDH is now confirmed to be involved in include: .blog, .site, .immo, .hotel, .home, .casa, .love, .law, .cloud, .baby, .art, .gay, .style and .store.
The company said in a statement:

During the next six months, TLDH will focus its efforts on marketing and operations for geographic names such as dot London and dot Bayern where it has the exclusive support of the relevant governing authority, as well as any other gTLDs that TLDH has filed for that are confirmed to be uncontested on the Reveal Date. Discussions with other applicants regarding contested names will be handled on a case-by-case basis.