New TLD Revenue Projections

New TLD Revenue Projections need to properly reflect domain volumes.

First year considerations:

  • Sunrise
  • Landrush
  • Market penetration

Basic right.  So in the first year you could say ‘We’re going to have 100 people buying our .TBA”.

So you might think 100 = 100 multiplied by your sales price.  Seems straight-forward but there is a catch.

  • Do you offer multiple year purchases i.e. can I purchase a domain for five-year?
  • Do you offer a discount for multiple years?

So if you have 100 registrations and 10% are multiple years with a discount your sales revenue changes.

You now have:

  • 1 year registrations – 90 x price
  • 2 year registrations – (% of 2 year registrations) x price – discount for each year(s)
  • etc.

New TLD Applicants Revenue ProjectionsThat’s year one for new TLD revenue projections but now, lets move to year two.

Year Two

Now for year two on wards, your volume needs to be a part of your new registrants plus your renewals.   So if you have 200 new registrants in year 2, you don’t simply have a total of 300 sales.  You have:

  • 200  for new registrants in year 2 plus
  • 100 x % of people who renew i.e. maybe only 40% of year 1 new domain registers want to renew.

Of course, you than have to calculate the impact on the year 2 renewals through your multiple year sales and discounts.

Bottom line, don’t forget the impact on your revenues from those domain renewals and the impact of discounts.

 

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