PIR chief: registries should stop stressing about volume

Public Interest Registry has announced some sweeping changes to how it markets .org and its other TLDs, with interim CEO Jay Daley telling DI that there’s too much focus on volumes in the industry today.
PIR is scrapping is volume discount programs after the current batch of incentives expires at the end of the year.
These are the programs that offer rebates to registrars if they hit certain performance targets, all based around newly created domains.
“They particularly favor large registrars, and we don’t think that’s appropriate going forward,” Daley told DI yesterday.
He said that when PIR removed some developed markets from its geographically-targeted discount programs, it saw creates go down but revenue improve.
He suggested that some registries have too much focus on volumes as a benchmark of success, failing to take account of important factors such as renews and abuse rates.
Part of the problem is that success is often measured (by folk including yours truly) by domains under management, rather than TLD health or revenue-per-domain.
“How many people are simply trying to get their numbers up without worrying about the underlying revenue, or taking a very low underlying revenue in order to get their numbers up?” Daley said.
“We’re not in any way somebody who is trying to get our numbers up at all costs, certainly not,” he said.
Another marketing program getting a makeover is pay-per-placement, where PIR would pay for prominent positions in the TLD drop-down menu of registrars storefronts.
These relationships have been based purely on new creates, Daley said, with appropriate “clawback” provisions when registrations turn out to be predominantly abusive.
In future, PIR intends to take a “longer-term, hygiene oriented view” of how its marketing money is used, making better use of data, he said.
“We need to be looking more at the quality of the registrations we get, the level of technical abuse generated by those registrations, looking at the renewal rates that come from those registrations,” he said.
PIR has a new four-strong channel services team that will be leading these changes.
“We are a public interest organization and need to take a public interest view on everything we do,” Daley said. “We need to be looking at our promotions for more than just commercial reasons, we need to be looking at public interest reasons as well.”
Daley, who ran New Zealand’s .nz registry from 2009 until this January, said that the big changes he is overseeing do not reflect an attempt to put his stamp on PIR and take over the CEO office on a permanent basis.
He does not want to run a registry and does not want to relocate to PIR’s headquarters in Virginia, he said.
“I’ve been a registry CEO for nine years,” he said. “I’ve done this and it’s time for me to look at other things.”
He also sits on PIR’s board of directors.

Comment Tagged: .org, discounts, marketing, pir, public interest registry, rebates

.CLUB sees spam double after China promotion

.CLUB Domains has seen the amount of spam in .club double a month after seeing a huge registration spike prompted by a deep discount deal.
The registry saw its domains under management go up by about 200,000 names over a few days in early August, largely as a result of a promotion at Chinese registrar AliBaba.
AliBaba sold .club domains for CNY 3 ($0.44) during the promotion, helping it overtake GoDaddy as the top .club registrar.
At that time, spam tracker SpamHaus was reporting that 17.9% of the .club domains it was seeing in the wild were being used in spam.
Today, that number is 35.4%, almost double the August 7 level. SpamHaus does not publish the actual number of spammy domains for .club; that honor is only bestowed upon the top 10 “bad” TLDs.
Correlation does not equal causation, of course. There could be factors other than the AliBaba promotion that contributed to the increase, but I believe there’s probably a link here.
.CLUB chief marketing officer Jeff Sass told DI:

When registrars have domains “on sale”, there is always the chance that low-cost domains will be attractive to abusers. We monitor abuse proactively, and respond promptly to complaints, as well as monitor our registrar partners collectively and individually.

It’s almost certainly unfair of me to single out fluctuations in .club here, rather than take a comparative look at multiple TLDs. There are certainly many worse TLDs per SpamHaus’ statistics — .men leads among the gTLDs, with 87.2% spam.
But, given the industry truism that cheaper domains leads to more abuse, I think such a large increase correlating with such a successful promotion is a useful data point.

Comment Tagged: .club, .club domains, alibaba, spam, spamhaus

Com Laude acquires Scottish rival

Brand protection registrar Com Laude has picked up smaller competitor Demys for an undisclosed sum.
Demys, based in Edinburgh, is an ICANN-accredited registrar that specializes in the UK automotive, retail/leisure, media and consumer goods sectors.
It also acts as the registry manager and exclusive registrar for .bentley, the lightly-used dot-brand of luxury car-maker Bentley Motors.
It had around 12,000 gTLD domains under management at the last count, about 7,200 of which were in .com.
It’s about an eighth the size of Com Laude in terms of gTLD domains under management.
Demys has a very light footprint in new gTLDs, with local geo .scot — where it is the largest corporate registrar and fifth-largest registrar overall — being a notable exception.
London-based Com Laude said it was also interested in the company for its brand monitoring services and dispute resolution work.
Two of Demys’ top guys act as arbitrators for UDRP and .uk’s Dispute Resolution Service.

Comment Tagged: .bentley, acquisition, bentley motors, brand protection, com laude, demys, trademarks

CentralNic acquired yet another company

Acquisitive registry/registrar CentralNic has picked up another company, paying up to €2.56 million ($2.95 million) for a small Delaware-based registrar.
It will pay €1.5 million up-front for GlobeHosting, with the rest coming in two annual installments.
GlobeHosting may have a US corporate address, but it plays primarily in the Romanian and Brazilian markets.
It’s not ICANN-accredited. Instead, it acts as a Tucows reseller for gTLD domains (though I imagine that arrangement’s days are numbered).
The company had revenue of €849,000 for the 12 months to July 31 2018 and EBITDA of €419,000, CentralNic said.
The timing is arguably opportunistic. Earlier this year, Romanian registry ICI Bucharest (or ROtld) introduced an annual domain registration renewal fee for the first time (for real).
It recently started deleting names that do not pay the fee, a modest €6 per year.
CentralNic said that GlobeHosting, which appears to be notable player in the .ro market, is “expected to benefit” from this change.

Comment Tagged: .ro, acquisition, centralnic, globehosting, ici bucharest, rotld, tucows

Empty Whois a threat to the US elections?

Could a lack of Whois records thwart the fight against attempts to interfere in this year’s US elections?
That’s the threat raised by DomainTools CEO Tim Chen in a blog post, and others, this week.
Chen points to recent research by Facebook, based on an investigation by security company FireEye, that linked a large network of bogus news sites and social media accounts to the Iranian state media.
FireEye’s investigation used “historical Whois records”, presumably provided by DomainTools, to connect the dots between various domains and registrants associated with “Liberty Front Press”, a purportedly independent media organization and prolific social media user.
Facebook subsequently found that 652 accounts, pages and groups associated with the network, and removed them from its platform.
The accounts and sites in question were several years old but had been focusing primarily on politics in the UK and US since last year, Facebook said.
Based on screenshots shared by Facebook, the accounts had been used to spread political messages bashing US president Donald Trump and supporting the UK’s staunchly pro-Palestinian opposition leader Jeremy Corbyn.
Google’s research, also inspired by FireEye’s findings and Whois data, linked the network to the state-run Islamic Republic of Iran Broadcasting.
The actions by Google and Facebook come as part of their crackdown on fake news ahead of the US mid-term Congressional elections, this November, which are are largely being seen as a referendum on the Trump presidency.
Because the domains in question predate the General Data Protection Regulation and ICANN’s response to it, DomainTools was able to capture Whois records before they went dark in May.
While the records often use bogus data, registrant email addresses common to multiple domains could be used to establish common ownership.
Historical Whois data for domains registered after May 2018 is not available, which will likely degrade the utility of DomainTools’ service over time.
Chen concluded his blog post, which appeared to be written partly in response to data suggesting that GDPR has not led to a growth in spam, with this:

Domain name Whois data isn’t going to solve the world’s cyberattack problems all on its own, but these investigations, centering on an issue of global importance that threatens our very democracy, likely get severely impaired without it. And this is just the tip of the iceberg, a few uniquely important investigations among the hundreds of thousands of cyberattacks going on all day every day all over the globe by people and organizations that can now hide behind the anonymity inherent in today’s internet. It’s reasonable that domain names used for certain commercial or functional purposes should require transparent registration information. Whois is not a crime.

DomainTools is one of the founders of the new Coalition for a Secure and Transparent Internet, a lobby group devoted to encouraging legislatures to keep Whois open.
Representatives of Facebook and Iran’s government are among the members of the Expedited Policy Development Process on Whois, an emergency ICANN working group that is currently trying to write a permanent GDPR-compliant Whois policy for ICANN.

6 Comments Tagged: DomainTools, elections, epdp, facebook, fake news, fireeye, gdpr, google, privacy, security, whois

Donuts gets bought by former ICANN CEO’s firm

Donuts is to be bought by a private equity firm that has a former ICANN CEO as a partner.
The company, which holds the largest portfolio of new gTLDs, has agreed to be acquired by Boston-based private equity firm Abry Partners for an undisclosed sum.
Not much info about the deal has been released, but one senses an ICANN alum’s hand at the wheel.
Former ICANN chief Fadi Chehade is a partner at Abry, having been initially employed as senior advisor on digital strategy back in 2016 after he left ICANN.
Abry, on its web site, says it focuses its investments on profitable companies, adding:

Depending on the type of fund, we target investments from $20 million to $200 million.
Since Abry’s inception, we’ve developed deep industry expertise in Broadband, Business Services, Communications, Cybersecurity, Healthcare IT, Information Services, Insurance Services, Internet-of-Things, Logistics, Media, and Software as a Service.

Since its formation in 1989, Abry has “completed more than $77 billion of transactions, representing investments in more than 650 properties.”
Donuts was founded by domain veterans Paul Stahura, Jon Nevett, Richard Tindal and Daniel Schindler in order to take advantage of ICANN’s new gTLD program..
It was initially funded by $100 million from Austin Ventures, Adams Street Partners, Emergence Capital Partners, TL Ventures, Generation Partners and Stahurricane.
It currently runs over 200 TLDs, the most populous of which I believe is .ltd, with over 400,000 names.
Donuts is the latest of a series of domain companies to exit via the private equity route, notably following Neustar and Web.com.
Chehade was ICANN’s CEO between 2012 and 2015. While he was not involved in the industry during the new gTLD’s program’s inception, he did oversee its early years.

3 Comments Tagged: abry partners, acquisition, donuts, ICANN

.tel’s second-biggest registrar gets canned

A Chinese registrar that focused exclusively on selling .tel domain names has been shut down by ICANN.
Tong Ji Ming Lian (Beijing) Technology Corporation Ltd, which did business as Trename, had its registrar contract terminated last week.
ICANN claims the company had failed to pay its accreditation fees and failed to escrow its registration data.
The organization had been sending breach notices since June, but got no responses. Trename’s web site domain currently resolves to a web server error, for me at least.
Trename is a rare example of a single-TLD registrar, accredited only to sell .tel domains. It didn’t even sell .com.
It is Telnames’ second-largest registrar after Name.com, accounting for about 6,000 names at the last count. At its peak, it had about 55,000.
Its share seems to be primarily as a result of a deal the registry made with a Chinese e-commerce company way back in 2011.
I’m a bit fuzzy on the details of that deal, but it saw Trename add 50,000 .tel names pretty much all at once.
Back then, .tel still had its original business model of hosting all the domains it sold and publishing web sites containing the registrant’s contact information.
Since June 2017, .tel has been available as a general, anything-goes gTLD, after ICANN agreed to liberalize its contract.
That liberalization doesn’t seem to have done much to stave off .tel’s general decline in numbers, however. It currently stands at about 75,000 names, from an early 2011 peak of over 305,000.
ICANN told Trename that its contract will end September 19, and that it’s looking for another registrar to take over its domains.
With escrow apparently an issue, it may not be a smooth transition.

2 Comments Tagged: .tel, breach, compliance, ICANN, telnames, termination, trename

Whois privacy did NOT increase spam volumes

The advent of more-or-less blanket Whois privacy has not immediately led to the feared uptick in spam, according to researchers.
Data from Cisco’s Talos email data service, first highlighted by security company Recorded Future this week, shows spam levels have been basically flat to slightly down since ICANN’s GDPR-inspired new Whois policy came into effect May 25.
Public Talos data shows that on May 1 this year there were 433.9 billion average daily emails and 370.04 billion spams — 85.28% spam.
This was down to 361.83 billion emails and 308.05 billion spams by August 1, an 85.14% spam ratio, according to Recorded Future.
So, basically no change, and certainly not the kind of rocketing skyward of spam levels that some had feared.
Cisco compiles its data from customers of its various security products and services.
Looking at Talos’ 18-month view, it appears that spam volume has been on the decline since February, when the ratio of spam to ham was pretty much identical to post-GDPR levels.
It also shows a similar seasonal decline during the northern hemisphere’s summer 2017.

There had been a fear in some quarters that blanket Whois privacy would embolden spammers to register more domains and launch more ambitious spam campaigns, and that the lack of public data would thwart efforts to root out the spammers themselves.
While that may well transpire in future, the data seems to show that GDPR has not yet had a measurable impact on spam volume at all.

Comment Tagged: cisco, gdpr, ICANN, privacy, recorded future, security, spam, talos, whois

Afilias finally admits it’s American

Afilias has changed its corporate structure and is now officially based in the United States.
A new holding company, Afilias Inc, has been created in Delaware. It now owns Afilias Plc, the Ireland-based company that has been until now the parent of the Afilias family.
Being “based” in Ireland and doing business primarily in the US was always partly a tax thing, and the company admitted in a press release yesterday that “recent favorable US tax changes” are one of the reasons it’s relocating to the States.
Trump’s tax changes last year reportedly saw corporation tax reduced from 35% to 21%, a steep cut but still a heck of a lot higher than Ireland’s aggressively business-friendly regime.
Other reasons for shift, CEO Hal Lubsen said in a press release, are: “More of the company’s shares are now owned by Americans, and our executive group is increasingly becoming American.”
The company also noted that its biggest partners — Public Interest Registry and GoDaddy — are American.
Afilias’s global HQ is now its office in Horsham, Pennsylvania. It also has offices in Canada, Australia, India and China.
The company told registrars that it does not expect the restructuring to have any impact on its operations.

Comment Tagged: afilias

Could a new US law make GDPR irrelevant?

Opponents of Whois privacy are pushing for legislation that would basically reverse the impact of GDPR for the vast majority of domain names.
Privacy advocate Milton Mueller of the Internet Governance Project today scooped the news that draft legislation to this effect is being circulated by “special interests” in Washington DC.
He’s even .
Mueller does not call out the authors of the bill by name — though he does heavily hint that DomainTools may be involved — saying instead that they are “the same folks who are always trying to regulate and control the Internet. Copyright maximalists, big pharma, and the like.”
I’d hazard a guess these guys may be involved.
The bill is currently called the Transparent, Open and Secure Internet Act of 2018, or TOSI for short. In my ongoing quest to coin a phrase and have it stick, I’m tempted to refer to its supporters as “tossers”.
TOSI would force registries and registrars to publish Whois records in full, as they were before May this year when ICANN’s “Temp Spec” Whois policy — a GDPR Band-aid — came into effect.
It would capture all domain companies based in US jurisdiction, as well as non-US companies that sell domains to US citizens or sell domains that are used to market goods or services to US citizens.
Essentially every company in the industry, in other words.
Even if only US-based companies fell under TOSI, that still includes Verisign and GoDaddy and therefore the majority of all extant domains.
The bill would also ban privacy services for registrants who collect data on their visitors or monetize the domains in any way (not just transactionally with a storefront — serving up an ad would count too).
Privacy services would have to terminate such services when informed that a registrant is monetizing their domains.
But the bill doesn’t stop there.
Failing to publish Whois records in full would be an “unfair or deceptive act or practice” and the Federal Trade Commission would be allowed to pursue damages against registries and registrars that break the law.
In short, it’s a wish-list for those who oppose the new regime of privacy brought in by ICANN’s response to the General Data Protection Regulation.
While it’s well-documented that the US executive branch, in the form of the National Telecommunications and Information Administration, is no fan of GDPR, whether there’s any interest in the US Congress to adopt such legislation is another matter.
Is this an IP lawyer’s pipe-dream, or the start of a trans-Atlantic war over privacy? Stay tuned!

5 Comments Tagged: gdpr, ICANN, legislation, ntia, Open and Secure Internet Act, privacy, tosi, Transparent, whois