NamesCon gTLD Statistics and Business Implications Presentation

January 18, 2015 Christa Taylor

The full NamesCon gTLD Statistics and Business Implications presentation provided on Wednesday, January 14th can be found here

Speaking Notes

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

Pricing

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

Financial Implications

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