DomainsBot to be “at the heart” of new gTLD sales

DomainsBot, which powers the name suggestion feature on most major registrar storefronts, has unveiled a significant update designed to make selling new gTLD domains easier.
The company reckons its new technology will soon be promoted from a follow-up sales tool, rolled out if a customer’s first choice of domain is not available, to “replacing the availability check” entirely.
“The idea is to be at the heart of the process of promoting new gTLDs,” CEO Emiliano Pasqualetti told DI.
The idea is pretty straightforward: a customer types a word into a search box, the service suggests available domain names with conceptually similar TLDs.
There’s a demo online already. If you type “chocolate”, it suggests domains such as chocolate.food, chocolate.menu and chocolate.health. Domain Name Wire did a quick test run today too.
While it may not be perfect today, it was pretty good at finding appropriate TLDs for the keywords I tested.
And Pasqualetti said that under the hood is a machine learning engine that will make its suggestions increasingly more relevant as new gTLD domains start to go on sale.
“It tries to predict which TLD we need to show to each individual using a combination of their query, their IP address and as much history as we can legally collect in partnership with registrars,” Pasqualetti said.
If, for example, customers based in London show a tendency to buy lots of .london domains but hardly ever .rome, Londoners will start to see .london feature prominently on their registrar’s home page.
“We learn from each registrar what people search for and what people end up buying,” he said.
Some registrars may start using the software in their pre-registration portals, increasing relevance before anything actually goes on sale, he said.
My feeling is that this technology could play a big role in which new gTLDs live or die, depending on how it is implemented and by which registrars.
Today, DomainsBot powers the suggestion engine for the likes of Go Daddy, eNom, Tucows and Moniker. Pasqualetti reckons about 10% of all the domains being sold are sold via its suggestions.
Judging by today’s press release, registrars are already starting to implement the new API. Melbourne IT, Tucows and eNom are all quoted, but Pasqualetti declined to specify precisely how they will use the service.
It’s been widely speculated that Go Daddy plans to deploy an automated “pay for placement” system — think AdSense for domains — to determine which TLDs get prominence on its storefront.
Pasqualetti said that’s the complete opposite of what DomainsBot is offering.
“We’re relevance for placement,” he said. “We want to give every TLD a chance to thrive, as long as they’re relevant for the end user.”
According to Pasqualetti (and most other people I’ve been talking to recently) there are a lot of new gTLD applicants still struggling to figure out how to market their TLDs via registrars.
There are about 550 “commercially interesting” applied-for gTLD strings in the DomainsBot system right now, he said. New gTLD applicants may want to make sure they’re one of them.
Next week, the company will reveal more details about how it plans to work with new gTLD registries specifically.

ICANN approves 2013 RAA

ICANN has approved a new version of its standard Registrar Accreditation Agreement, after almost two years of talks with registrars.
The new 2013 RAA will be obligatory for any registrar that wants to sell new gTLD domain names, and may in future become obligatory for .org, .info and .biz.
The new deal’s primary changes include obligations for registrars to verify email addresses supplied for Whois records as well as stronger oversight on proxy/privacy services and resellers.
Akram Atallah, president of ICANN’s new Generic Domains Division said in a statement:

In no small way this agreement is transformational for the domain name industry. Our multiple stakeholders weighed in, from law enforcement, to business, to consumers and what we have ended up with is something that affords better protections and positively redefines the domain name industry.

Registrars Stakeholder Group chair Michele Neylon told DI:

The 2013 RAA does include lot of changes that will be welcomed by the broad community. It addresses the concerns of the Governmental Advisory Committee, it addresses the concerns of law enforcement, it addresses the concerns of IP rights advocates, end user consumer groups and many others.

But Neylon warned that ICANN will need “proactive outreach” to registrars, particularly those that do not regularly participate in the ICANN community or do not have English as their first language.
The new RAA puts a lot of new obligations on registrars that they all need to be fully aware of, he said.
“The unfortunate reality is that a lot of companies may sign contracts without being aware of what they’re agreeing to,” Neylon said. “The entire exercise could be seen as a failure if the outliers — registrars not actively engaged in the ICANN process or whose first language is not English — are not communicated with.”
A new RAA was also considered a gateway event for the launch of new gTLDs, so applicants have a reason to be cheerful today.

New registrar contract could be approved next week

ICANN’s board of directors is set to vote next week on the 2013 Registrar Accreditation agreement, but we hear some last-minute objections have emerged from registrars.
The new RAA has been about two years in the making. It will make registrars verify email addresses and do some rudimentary mailing address validation when new domains are registered.
It will also set in motion a process for ICANN oversight of proxy/privacy services and some aspects of the reseller business. In order to sell domain names in new gTLDs, registrars will have to sign up to the 2013 RAA.
ICANN has put approval of the contract on its board’s June 27 agenda.
But I gather that some registrars are unhappy about some last-minute changes ICANN has made to the draft deal.
For one, some linguistic tweaks to the text have given registrars an “advisory” role in seeking out technical ways to do the aforementioned address validation, which has caused some concern that ICANN may try to mandate expensive commercial solutions without their approval.
There also appears to be some concern that the new contract now requires registrars to make sure their resellers follow the same rules on proxy/privacy services, which wasn’t in previous drafts.

Hexonet scores dot-brand deal with Brights

Hexonet has made a deal with new gTLD consultancy Brights Consulting to provide registrar technical services for all of Brights’ dot-brand clients.
All new gTLDs, even dot-brands, are obliged to use accredited registrars to register domain names. Under this deal, Brights will use Hexonet’s RegistrarOC service to make the process a little easier.
RegistrarOC is basically a way for companies accredited by ICANN as registrars to outsource the technical and compliance functions of running a registrar to Hexonet.
Brights will use its own accreditation and RegistrarOC to manage its clients’ portfolios of second-level domains in their respective dot-brands, Hexonet chief strategy officer Robbie Birkner said.
The exact number of dot-brands Brights is taking care of has not been disclosed, but I believe it’s in double figures. Most are based in Japan, same as Brights.

Four registrars terminated

Four small domain name registrars have lost their ICANN accreditation and their domain names have been transferred to another.
ICANN announced on Friday that US-based C I Host and Central Registrar (Domainmonger.com), along with Panama-based Power Brand Center have all been terminated for non-compliance.
Breach notices had been sent earlier this year covering everything from broken Whois to a failure to cooperate with audits.
Dotted Ventures, also American, had allowed its accreditation to lapse in March. It had, however, also been sent a breach notice for non-payment of ICANN fees in April.
The gTLD domains they managed, which amount to between a couple of hundred and a couple of thousand each, have all been transferred to UK-based Astutium, which isn’t much bigger.
Customers of each terminated registrar will receive notices from Astutium instructing them how to proceed, ICANN said. There shouldn’t be a cost to transfer, so any request for cash may be a phishing attack.

Go Daddy IPO “not off the table”

Go Daddy may be on the IPO track with its new investors and management.
Speaking to the Wall Street Journal about the possibility of going public, CEO Blake Irving said:

It’s not off the table. We’re growing at double digits [in terms of percentage] on the customer side, on revenue, on earnings, so the opportunity for us to have an IPO is quite good. The board is quite supportive of taking that direction, if that’s what we want to do.

Go Daddy famously yanked its planned IPO in 2006 just weeks before it was set to execute, apparently at the whim of then-CEO and majority owner Bob Parsons.
Since then, Parsons has taken a lower profile role at the company, and his shareholding was diluted to reportedly lower than 35% by an investment from KKR and Silver Lake Partners reportedly worth over $2 billion.
The short WSJ interview also reveals a few other interesting tidbits, such as the fact that Irving commutes to Go Daddy’s Arizona headquarters by plane once a week.

Interim CEO gets two C-level roles at Go Daddy

Go Daddy’s management shake-up continues apace, with the news last night that former interim CEO Scott Wagner has been appointed COO and CFO.
Wagner comes from KKR, one of three major investors to take a big stake in the registrar in 2011.
He was CEO in the interregnum between Warren Adelman’s short-lived stint and the appointment of Yahoo alum Blake Irving this January.
Irving has been filling senior spots at the company ever since taking over. Many of his new recruits are former Yahoo colleagues.
GoDaddy said in a press release that its sales hit almost $1.3 billion last year and that it has more than 11 million customers.

Three more registrars get breach notices

ICANN has told three registrars that they’re in breach of their contracts and risk losing their accreditations.
Two of the companies in receipt of breach notices this week — Internet Solutions and DomainSnap — have no gTLD domains under management, but the other, Aregentinian registrar Dattatec, has over 90,000, making it the 112th-largest registrar.
The former two have simply not paid their fees, according to ICANN.
Dattatec, meanwhile, also stands accused of not adequately responding to Whois accuracy complaints on a handful of distinctly spammy-looking domain names in its care.
All three have been given until almost the end of the month to sort out the problems or face the possibility of termination.

Go Daddy building big new facility in Arizona

Go Daddy has “broken ground” on a new 150,000 square foot facility in Tempe, Arizona.
The new Global Technology Center will have room for 1,300 technology and customer care employees, the registrar said in a press release today. It expects to create 300 new jobs locally.
The construction project was ceremonially kicked off by CEO Blake Irving and Arizona governor Jan Brewer today.
Go Daddy is of course a native of the state, with its headquarters in Scottsdale.
The new two-story center will be located in Arizona State University Research Park, and is set for completion in 2014.

Web.com CEO talks “defensive” .web strategy

Number-three registrar Web.com applied for the new gTLD .web in order to protect a trademark, but it’s open to partnerships to secure and manage the string, according to its CEO.
But the .web contention set will take a “considerable amount of time to be resolved”, David Brown told analysts during the company’s first-quarter earnings conference call last night.
“The way we’ve always thought about .web is that given that we have a trademark on the name Web.com, we really needed to apply for .web in order to protect our trademark,” he said.
“In order to protect our trademark globally, we needed to basically defend ourselves by applying for .web, and we’re certainly interested in getting it, but it’s not our core business,” he added.
Web.com, which also owns Network Solutions and Register.com, is one of seven applicants for .web.
But the company did not file any Legal Rights Objections against its competitors, as its trademark may have permitted, reflecting a slightly relaxed attitude to the string that also came across in the yesterday’s call.
Brown said, according to the Seeking Alpha transcript:

We’ll be perfectly content if anyone gets .web because they’re going to distribute it through us, and it’s our name, and we’re advertising and building a brand in the marketplace, and we’re going to be a great deliverer of .web extensions, whoever gets it, whether it’s us or someone else.

He indicated that the ultimate winner of .web is likely to be some kind of cooperative arrangement between applicants. He said:

Our strategy has always been to cooperate. And so we’ve looked at the people who have applied, and we certainly are talking to all of them about who would benefit from this and which team would be the best team to provide services, and so that would be our strategy… We won’t bear the full load of the economics of acquisition ourselves likely. It’ll likely be shared.

To me, this screams “joint venture”, which has always been the way I’ve seen .web pan out. If you recall, when Afilias was formed to apply for .web in 2000, it was a joint venture of many leading registrars of the time.
Brown also said on the call that he expects to see the first new gTLDs get approved in the fourth quarter, but they’ll be the uncontested ones and therefore not particularly lucrative.
Web.com could also be the beneficiary of marketing dollars spent by new gTLDs to secure shelf space, he said.