NamesCon gTLD Statistics and Business Implications Presentation
A few notes from the live NamesCon gTLD Statistics and Business Implications Presentation
TLDs by Volume
- By Quartile by registration Volume
- First Quartile, top 68 new gTLDs, with average registration volume of 29,200
- Second quartile (69-to 135) at 6,800
- Third quartile, (136 – 203) 3,000 and finally
- Fourth quartile (204-271) at 1,200
TLDs in Terms of Revenues
Similarity in terms of revenue per year
- Average in quartile 1: $325k
- Average in Quartile 2: $80k
- Quartile 3: $42k
- Quartile 4: $17k
- The TLDS with the largest volume of registrations are not receiving an upswing from being cheaper.
- In fact, it’s just the opposite with the smallest volume tier (tier 4) selling domains at a reduced price yet the kick from the volume is not occurring.
Financial Implications: Tier 1 Today
- Tier 1: using a few conservative assumption are profitable
- Yearly registration volume of $43k and price of $21 and a 60% renewal rate.
Financial Implications: Tier 2 Today
- Tier 2: Not as rosy with a yearly volume of 11,500, price at $24 and 60% renewal rate.
2015 Registration Forecast – Advanced
- Advanced version = 8 Million by 30 June 2015
- Adding an exponential factor by the growth rate
- Timing of release of new gtlds
- Applied tier volume concept to volume and the weighting of more tier 1 TLDs to be released from contention and entering into GA
Financial Implications: Tier 3 Today
- Tier 3: 7k yearly registrations price of $18, 60% renewal
- Only way to survive is to increase volume and price
Financial Implications: Tier 4 Today
- Tier 4 TLDs are in the worst position and will need to alter their business plan/strategy to minimize losses
- Volume of 3,500, price of $18, minimal expenses and you can see the growing cumulative loses over 5 years
- gTLD in tier 3 & 4 need to wait for the large players to increase consumer awareness and be ready to jump
- Reducing pricing is not going to increase volume at this stage
Takeaway: lot of money has been invested in the industry, going to see a lot more efforts to increase registrations. Bigger new gTLDs have yet to arrive making 2015/2016 exciting times for the industry, new business models for TLDS, and some major changes in the industry over the next 24 months.
See you next year for an update to the NamesCon gTLD Statistics and Business Implications Presentation