Yong1
Established Member
- Impact
- 53
My partner was trying to broker some premium new gTLD names and shared the following points with them. Here is more or less what he had to say and the answer he got from Donuts...
1. As you know its hard enough to make high end sales, and more so for non .com's.
2. The feedback I've been getting back time after time is that the renewal kills it for the potential client.
.A one time expense is just different compared to an ongoing expense.
3.Once a company manages to get a budget for a one time purchase and after convincing them of the branding aspect of the domain, they get stuck with the renewals and the deals just dont happen.
I get answers like : "So yes its an interesting idea for a brand name.. We are willing to try it and even pay for it.. But you are getting to greedy.. We cant justify this.. we are wiling to spend a one time but not for renewals at such a price... Com renewals are much cheaper. Who will guarantee they wont up the prices later again?"
I try hard not to mention the Uniregistry fiasco and the fact that those high existing renewal prices can actually change over time either way, with minimal supervision or cap contrary to .com and .net.
4. The potnetial buyers dont understand the different models or difference between Registry and Registrar and they put us all in the same group too
5. I do also believe that high end sales will give the new gTLD extensions more validity and visibility.. and will also help drive the aftermarket too and will give credibility for your extensions long term..
My question is whether you have any plans to reduce renewal rates of premium new gTLD domains? I had seen that some registries have decided to take a model of one time high registration price and later on normal renewal rates. They applied it retro too. Some dont, and it just makes it a very hard sell.
The answer my partner got was that they dont plan on changing their model.
Donuts has modeled the pricing with extensive research into maintaining a consistent revenue model, rather than higher up front and lower renewals.
So they seem to be running for short term and not long term.
They also basically dont want any trading to happen with their top names.
They wait for buyers of those names to drop them and then sell them at a high price again to another sucker. Just like .xxx does...
If I were a shareholder... i would be worried.
They are basically looking to find new suckers each time..Let them buy, renew at high levels and if not then possibly make sure to reserve them once they drop them and sell them to another sucker...
1. As you know its hard enough to make high end sales, and more so for non .com's.
2. The feedback I've been getting back time after time is that the renewal kills it for the potential client.
.A one time expense is just different compared to an ongoing expense.
3.Once a company manages to get a budget for a one time purchase and after convincing them of the branding aspect of the domain, they get stuck with the renewals and the deals just dont happen.
I get answers like : "So yes its an interesting idea for a brand name.. We are willing to try it and even pay for it.. But you are getting to greedy.. We cant justify this.. we are wiling to spend a one time but not for renewals at such a price... Com renewals are much cheaper. Who will guarantee they wont up the prices later again?"
I try hard not to mention the Uniregistry fiasco and the fact that those high existing renewal prices can actually change over time either way, with minimal supervision or cap contrary to .com and .net.
4. The potnetial buyers dont understand the different models or difference between Registry and Registrar and they put us all in the same group too
5. I do also believe that high end sales will give the new gTLD extensions more validity and visibility.. and will also help drive the aftermarket too and will give credibility for your extensions long term..
My question is whether you have any plans to reduce renewal rates of premium new gTLD domains? I had seen that some registries have decided to take a model of one time high registration price and later on normal renewal rates. They applied it retro too. Some dont, and it just makes it a very hard sell.
The answer my partner got was that they dont plan on changing their model.
Donuts has modeled the pricing with extensive research into maintaining a consistent revenue model, rather than higher up front and lower renewals.
So they seem to be running for short term and not long term.
They also basically dont want any trading to happen with their top names.
They wait for buyers of those names to drop them and then sell them at a high price again to another sucker. Just like .xxx does...
If I were a shareholder... i would be worried.
They are basically looking to find new suckers each time..Let them buy, renew at high levels and if not then possibly make sure to reserve them once they drop them and sell them to another sucker...