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Higher Registration Prices, More Profits

Posted on 04 September 2014 by Andrei

Mike Berkens blogged about the first day numbers for the 7 new gTLDs which entered the General Availability phase yesterday and some interesting conclusions can be drawn.

With a $100-ish price tag, Dot Credit had a more than decent performance for the registry. 801 registrations may not seem like a lot but if you multiply that number by $100, I’m sure you’ll agree that $80k in revenue represents a very solid performance.

With an even higher price tag, Dot CreditCard had 281 registrations but still, $35k in revenue after the first day of GA is not too shabby.

Here are the other results:

Dot Gratis: 1,010

Dot Credit: 801

Dot Audio: 701

Dot Juegos: 482

Dot Hiphop: 424

Dot Claims: 397

Dot CreditCard: 281

Alright, so one interesting observation is the fact that two new gTLDs with high registration costs did very well for the registry. Another (just as interesting) observation however is the fact that the new gTLDs with a considerably lower price tag didn’t do well at all.

For example Dot HipHop and Dot Juegos. Yes, they had more registrations that Dot CreditCard but since the price was significantly lower, the financial results aren’t all that amazing.

For example, I’m now seeing a $12.99 price tag for Dot Juegos. Multiply that by 482 (the number of registrations) and you’ll realize that $6,261 in revenue after a day of GA is not exactly worth celebrating.

The same way, I’m seeing a $19.99 price tag for Dot HipHop. Multiply that by 424 and again, $8,476 is a very poor result.

Now of course, there are other factors at play (how appealing the new gTLD is, how wide the pool of investment grade domains is and so on) but still, today’s observations are worth keeping in mind: the registry did well with the most “expensive” new gTLDs, whereas the cheaper ones hardly gave anyone reasons to celebrate.

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3 Comments For This Post

  1. Chuck Says:

    You say $80k and $35k in sales in day one of GA is “solid” and $8k is “very poor”? They’re all poor to me.

    Given that the first day of GA is likely to be each TLD’s best performance day, none of them will be highly profitable registries and each TLD is likely to die on the vine without any marketing dollars being spent by the registry to have registrars promote them.

  2. Leonard Britt Says:

    Most TLDs with premium renewals are going to be risky investments. Note as well that with .juegos normally Spanish game phrases start with the word “juegos” rather than ending that way. For example…

    JuegosdeAventura
    JuegosdeAccion
    JuegosdeCarros
    JuegosVirtuales

  3. Andrei Says:

    @Chuck: given the fact that Donuts is the registry, I’m reasonably confident that yes, the Dot Credit and even Dot CreditCard results after the first day of GA can be considered solid.

    Since Donuts is behind a *lot* of new gTLDs, their costs on a “per new gTLD” basis are considerably lower compared to let’s say a company that only runs one extension. If .Credit or .CreditCard would have been the registry’s only extension then (especially when it comes to Dot CreditCard) sure, the word “solid” could be replaced with “decent” but in our case, the registry (Donuts) is most likely pleased with the results in those two cases.

 
 
         
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