.hiv’s innovative, dangerous business model

.hiv, the first charity gTLD, is set to go to general availability at 2pm UTC tomorrow with one of the strangest and riskiest business models of any new gTLD to date.
While registrants will be able to use .hiv domains more or less as they please, as with any other gTLD, Berlin-based registry dotHIV is banking on an innovative microdonation system to set the space apart.
When you buy a .hiv domain, you’ll be sent an invitation by the registrar or registry to join an optional Click-Counter service, according to dotHIV chief marketing officer Michael Twist.
If you join the service, every time somebody visits your .hiv web site, dotHIV will donate a tenth of a US cent to one of four (initially) HIV/AIDS-related charity projects.
The donation will come from a pool of cash set aside by the registry from its registration fees.
While .hiv names are going to be sold, by 80 to 100 registrars at launch, for close to $200 per year, $120 of each registration or renewal fee will go into this charitable pool.
This business model is unprecedented in the domain name space, and it’s leading to the registry behaving in ways you wouldn’t expect from a new gTLD business.
For starters, dotHIV isn’t overly concerned about promoting its end users in a big way right out of the gates. It needs to refill its diminished cash pool to be able to cover the microdonations.
At first, it’s more concerned about volume and premium domain sales.
This problem is more pressing because of the longer-than-expected process of getting the .hiv application through the ICANN evaluation and delegation process.
“The microdonation system only works if we’ve got money in the pot,” said Twist. “The delay in the ICANN process has eaten up some of the funds.”
With a $120 donation from each sale, any given .hiv domain would only need to generate 1.2 million clicks in any given year to render it ‘unprofitable’ — ie, taking more from the pot than it put in.
dotHIV therefore needs time to ensure the pot of money from registrations is big enough to cover any big traffic spikes — what if a .hiv link goes viral, or a big-brand company starts using one? — before promoting the end-user sites in any meaningful way.
“First we need to push for registrations, and then traffic,” said Twist. “We can’t get too many people clicking before we hit a critical mass to support what we’re trying to do.”
There’s also the other possibility: that dotHIV, which is a registered charity, may wind up sitting on a pile of cash from registrations that is not going to its designated causes due to a lack of clicks on its users’ sites.
There’s risk in both directions, which begs the question: why not just donate the $120 to charity at the point of registration?
“More than just trying to raise funds what we’re doing is trying to raise awareness,” said Twist.
By encouraging (eventually) viral, click-based fund-raising, the registry hopes to put a spotlight back on the virus, which perhaps isn’t as trendy a cause as it once was due to the development of drugs that can delay the onset of AIDS by decades.
dotHIV is launching with some premium sales and some big-name anchor tenants under its belt.
Twist said that a “handful” of $10,000 names, which he declined to identify, have already been sold to pharmaceuticals companies involved in the development of HIV drugs.
There are about 10,000 reserved premiums in the space, he said, with a starting price of $5,000. Premium buyers will have to commit to usage rules including a commitment to use the Click-Tracker.
Keep a Child Alive, the charity founded by musician Alicia Keys, is among those committed to be early adopters and the Federation of Gay Games will use sport.hiv.
From the domain world, corporate registrars Mark Monitor and IP Mirror are to use .hiv domains.
There are no rules preventing domainers registering in .hiv (perhaps even treating it as a donation rather than an investment) but Twist said the registry would be disappointed to see large numbers of parked sites.

Straat-backed bidder beats Donuts and Afilias to .health

DotHealth has won the four-way contention set for the controversial new gTLD .health.
Afilias and Donuts both withdrew their competing applications this week. Famous Four withdrew its application over a month ago.
DotHealth is backed by Straat Investments, the investment vehicle chaired by .CO Internet’s Juan Calle.
The new gTLD will run on a Neustar (which now owns .CO) back-end.
.health is likely to be restricted, or at least policed, to ensure fake pharmacies are scrubbed from the zone.
DotHealth is supported by, among other health groups, the National Association of Boards of Pharmacy (NABP) which often targets registries and registrars in its campaigns against bogus online pharmacies in the US.
The company plans to use LegitScript to monitor its namespace.
.health will compete against the unrestricted .healthcare, which has been delegated to Donuts.
All four applicants for .health faced adverse Governmental Advisory Committee advice and unsuccessful public interest objections from the Independent Objector.

Biggest dot-brand? .realtor to give away half a million domains

Up to 500,000 card-carrying members of North American real estate associations will be given a free one-year .realtor domains, according to the registry.
The National Association of Realtors said its members and members of the Canadian Real Estate Association will be able to claim their names at claim.realtor.
The offer will become active October 23.
As “realtor” is a registered trademark belonging in the US to the NAR, there’s a pretty good chance .realtor could very soon become the largest dot-brand by volume.
The organization says it has a million members. The CREA, which owns the Canadian trademark on the term, has 100,000 members and will have 10,000 free registrations to hand out.

Reported mass exodus from .com explained

Did Verisign suffer from a massive 2,600% increase in the number of deleted .com domain names this April?
Not quite, although the bizarre spike in deletes may have highlighted an area where the company was previously out of compliance with its ICANN Registry Agreements.
April’s .com registry report, filed with ICANN and published last week, shows 2.4 million domains were deleted, compared to just 108,000 in March and 90,000 in April 2013.

The spike looks surprising, and you may be tempted to think it is in some way related to the arrival of new gTLDs.
But look again. Could .com, a registry with over 116 million domains under management, really only see roughly 100,000 deletes every month? Clearly that number is far too low.
So what’s going on? I asked Verisign.
The company said that it has implemented “voluntary” changes to its reporting of deleted domains, based on the standard new gTLD Registry Agreement, which specifies what must be reported by new gTLD registries.
It said:

Prior to the April 2014 monthly reports, and per the ICANN gTLD registry reporting guidelines, Verisign reported on only deleted domains outside of any grace period.

There are five “grace periods” permitted by ICANN contracts: the Add Grace Period, Renew/Extend Grace Period, Auto-Renew Grace Period, Transfer Grace Period, and Redemption Grace Period.
The familiar Add Grace Period allows registrars to cancel registrations within a week of registration if the registrant made a typo, for example, and asked for a refund.
The Redemption Grace Period covers domains that have expired and do not resolve, but can still be restored for 30 days at the request of the registrant.
According to Verisign, before April, domains that were deleted outside of any of the five grace periods were reported as “deleted-domains-nograce”.
From April, the company is reporting domains only as “deleted-domains-nograce” if they delete outside of the Add Grace Period.
According to my reading of the .com contract, that’s what Verisign should have been doing all along.
The contract, which Verisign and ICANN signed in late 2012, defines “deleted-domains-nograce” only as “domains deleted outside the add grace period”. There’s no mention of other grace periods.
The same definition can be found in the 2006 contract.
It appears to me that Verisign may have been under-reporting its deletes for quite some time.
Verisign said in response that it does not believe it has a compliance issue. A spokesperson said: “[We] voluntarily updated our reporting of deleting domain names so that our reporting is aligned with ICANN’s reporting clarifications for the new gTLDs.”

Verisign: 41% of new gTLD sites are parked

As much as 41% of domains registered in new gTLDs are parked with pay-per-click advertising, according to research carried out by Verisign.
That works out to over 540,000 domains, judging by the 1.3 million total I have on record from June 29, the day Verisign carried out the survey.
Domains classified as carrying “business” web sites — defined as “a website that shows commercial activity” — accounted for just 3% of the total, according to Verisign.
There are some big caveats, of course, not least of which is .xyz, which tends to skew any surveys based on “registered” names appearing in the zone file. Verisign noted:

XYZ.COM LLC (.xyz) has a high concentration of PPC websites as a result of a campaign that reportedly automatically registered XYZ domains to domain registrants in other TLDs unless they opted out of receiving the free domain name. After registration, these free names forward to a PPC site unless reconfigured by the end user registrant.

On June 29, .xyz had 225,159 domains in its zone file. I estimate somewhat over 200,000 of those names were most likely freebies and most likely parked.
The practice of registry parking, carried out most aggressively by Uniregistry and its affiliate North Sound, also threw off Verisign’s numbers.
Whereas most new gTLD registries reserve their premium names without adding them to the zone files, Uniregistry registers them via North Sound to park and promote them.
Tens of thousands of names have been registered in this way.
Coupled with the .xyz effect, this leads me to conclude that the number of domains registered by real registrants and parked with PPC is probably close to half of Verisign’s number.
That’s still one out of every five domains in new gTLDs, however.
Judging by a chart on Verisign’s blog, .photography appears to have the highest percentage of “business” use among the top 10 new gTLDs so far.
Verisign also found that 10% of the names it scanned redirect to a different domain. It classified these as redirects, rather than according to the content of their final destination.

Momentum cancels dot-brand conference

Momentum Events has cancelled its planned new gTLD conference, which was due to take place in Amsterdam next month.
The Digital Strategy & DotOps Congress was designed primarily for potential dot-brand gTLD applicants — with free tickets on offer for eligible companies — but Momentum said there was not enough demand.
A Momentum rep tells me it was looking like fewer than 100 people were going to attend.
“[M]arket response to this event thus far has demonstrated that the use of TLDs by brands is still a developing area and at this time we are just a bit too ahead of the curve,” the company said in an email to participants. “As such and in consideration of your time, we decided to proceed with cancelling this event.”
The conference was to be held at the Crowne Plaza hotel in Amsterdam, Netherlands from September 18 to 19.
Momentum is tentatively thinking about rescheduling the show for the first quarter next year.
It’s not the first new gTLD conference to be cancelled due to the slow uptake of new gTLDs. The third .nxt conference was abandoned twice in 2012 due to lack of demand and delays in the ICANN process.
Unlike the .nxt situation, where some attendees said they did not get refunded for their event passes, Momentum tells me people who had already paid for tickets can be refunded.
They’ll also be offered access to other Momentum conferences — either the rescheduled spring conference or a more imminent brand-oriented show — as an alternative.

Google beats Microsoft to .docs

Google and Microsoft seem to have settled their contention set for the .docs new gTLD, with Google emerging the victor.
Microsoft withdrew its application for .docs this week.
It’s not clear how the deal was made, but Google is known to have participated in private auctions for other strings.
Google Docs is of course Google’s office document service.
Microsoft also has a Docs service, a collaboration with Facebook at Docs.com, but it seems to have been in beta since April 2010 and, by the looks of the site, isn’t what you’d call a success.

Amazon and Google deal on .talk, .play, .drive and others

Google and Amazon have started making deals to settle their new gTLD contention sets.
Google won three contention sets against Amazon this week, judging by the latest withdrawals, while Amazon won two.
Amazon won .talk and .you after Google, the only other applicant, withdrew.
Neither company appears to have a “You” brand, unless you count YouTube, but the .talk settlement strongly suggests that Google Talk, the company’s instant messaging client, is on the way out.
When Google applied for .talk in 2012 it intended to give Talk users custom domains to act as a contact point, but in 2013 Google started to indicate that it will be replaced as a brand by Google Hangouts.
The withdrawal seems to suggest that the existence of a gTLD application, a relatively small investment, is not an overwhelming factor when companies consider product rebranding.
I wonder what effect a live, active TLD will have on similar decisions in future.
But Google won the two-horse races for .dev and .drive and after Amazon withdrew its applications.
Google has a product called Google Drive, while Amazon runs Amazon Cloud Drive. Both companies have developer programs, though Google’s is arguably the more substantial of the two.
Google has also won .play — Google Play is its app store — after Amazon, Radix and Star Registry’s withdrawals. Amazon does not have a Play brand.
Google has also withdrawn its application for .book, leaving six remaining applicants, including Amazon, in the contention set.
I don’t currently know whether these contention sets were settled privately or via a third-party auction.

That’s all folks! Final gTLD app gets approved

ICANN has finally finished evaluating all 1,930 new gTLD applications from the 2012 round.
Indian conglomerate Tata Group’s dot-brand .tata passed Extended Evaluation (pdf) on Friday, having apparently secured the non-objection of Morocco, which has a province of the same name.
Calculated from Reveal Day — June 13, 2012 — it’s taken a little over two years (765 days) for every bid to pass through first Initial Evaluation and then, if necessary, Extended Evaluation.
Calculated from the first batch of Initial Evaluation results being released, it’s 483 days.
A total of 1,783 applications passed IE. A further 38 failed, of which 35 passed EE. There have been 211 withdrawals so far and, due to contention, another 380 are expected.

Track all the popular new gTLD domains on DI

Want to get a full daily list of which new gTLD domains have Alexa rank?
From today DI PRO subscribers can, with our new Popular New gTLD Domains feature.
Updated once a day, the report comprises a list of new gTLD domains that are used by the top one million web sites on the internet, according to data provided by Alexa.
The report currently has 635 domains, but it’s growing.
The report can be used to discover how early adopters are using new gTLDs and which TLDs are generating the most popular web sites.
Here’s a screen shot:

DI PRO subscribers can check it out here.