ICANN approves New gTLDs Program

Posted by: Admin  :  Category: Domain Names & DNS

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As i predicted in post from last month, ICANN just voted to approve the new gTLDs program during a meeting in Singapore. What this means is that i can now apply for .dnsblogs as a TLD!! Of course i am not going to apply for it for many reasons. First blog.dnsblogs doesn’t make any symantic  [ Read More ]
DNSblogs.com

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Panax Ginseng Domain Name (panaxginseng.net) Has Sold

Posted by: Admin  :  Category: Domain Names & DNS

I am please to announce on this the evening of the tenth of June, 2011, that the domain name PanaxGinseng.net has been sold in a private transaction. The two-word, keyword-rich, high-quality sub-premium domain name contains the exact term “panax ginseng”. Panax Ginseng is an herb (a root to be specific) that is commonly used in […]
Domain Name Blog

Number of Available Domain Names to Skyrocket: A take on ICANN’s New gTLD Program

Posted by: Admin  :  Category: Domain Names & DNS

In my last post I discussed about how to best work towards attaining the right mix of money sites using management consultant’s BCG concept. Well this month we are dealing with a controversial ICANN policy that’s about to introduce new costs to your business.

Internet on the brink of massive address explosion
The landscape for generic Top Level Domain Names is about to change for good or worse. If all goes according to plan, ICANN’s Executive Board meeting on 20th June 2011 in Singapore will approve the new gTLD Program. Afterwards the number of available domain names is set to sky rocket. And what many legitimate business owners have been fearing is about to happen. The right of the dot will become a matter of controversy if the new ICANN gTLD Program is approved.

New gTLDs Program
The new gTLDs are broken into 3 categories namely:

  • .brand TLDs: .GOOGLE, .BING, .CNN etc
  • Generic TLDs: .FINANCE, .WEB etc
  • Community / Special interest TLDs: .BERLIN, .LONDON, .PARIS etc.

Meanwhile ICANN has just published the new gTLD applicant guidebook for the general public to read and apply. For those who are not aware, the new gTLD application window already ended on 20th April 2011 (around 400 applications were received). The document includes:

  • introduction to the new gTLD application process
  • evaluation procedures (questions and criteria)
  • objection procedures (Wipo etc)
  • string contention procedures
  • transition to delegation (trademark clearing house, suspension)
  • applications terms and conditions

It is a very nice piece of document for anyone who wants to inform themselves about how the internet is about to change for good or worse.

Opposition to new gTLDs
As I have expressed my opposition here that I am not a fan of the new gTLDs because they are only going to confuse internet users and consumers. There are enough available domain names for everyone to register under existing country code Top Level Domain Names (ccTLDs) and gTLDs. Although the process of estimating the exact impact of the new gTLDs is complicated, there is consensus that the cost of doing business online for businesses will significantly go up. ICANN and other supporters of the program have touted it as a unique opportunity to promote innovation, business competition and consumer choice. I disagree with such a proposition because very few people are involved in the ICANN decision making process. ICANN meetings are free for everyone to participate but the traveling costs involved forbid the public from attending. This leaves it open for registrars and ICANN itself to pass own policies meant to line their pockets with money. As a domain investor and web entrepreneur I am opposed to the new gTLD program for a number of reasons:

  • the gTLDs will only increase costs for online business owners because they will have to fight for the same names they already own at highly inflated costs
    • $ 185k fee for successful applicants
  • new gTLDs do not serve the public interest but rather those of a few individuals

Why new gTLDs will fail

  • Prohibitively high registration costs and switching costs for website owners
    • transferring big sites from one domain to another is not a walk down the park
  • Inadequate mechanisms to prevent fraud and protect IP rights
    • can you imagine every big brand out there will need to apply for its TLD in order to defensively defend itself
  • Limited scope / counterproductive commercial application of such gTLDs – e.g. nobody needs .africa whereas other ccTLDs are not even widely used on most developing countries
  • lack of a global understanding and awareness of new gTLD program

On a positive note, the new gTLDs might draw significant attention to our industry, attract many newbies who will think of it as a get rich quick scheme and burn their fingers in the procecess.

Conclusion
All in all, if you take some of the factors I have mentioned above into consideration, I do not think the world needs the new gTLD program. But it seems like big money interests might win this time round. The costs of approving a gTLDs program which increases the number of available domain names far outweigh the benefits.

DNSblogs.com

Lastest Domain Name News

Posted by: Admin  :  Category: Domain Names & DNS

Gambia: World Press Freedom Day 21st Century Media – New Frontiers, New Barriers
World Press Freedom was on Tuesday 3rd May commemorated by Journalists in The Gambia by participating in a symposium convened by The Gambia Press Union and funded by the United Nation Educational Scientific and Cultural Organisation (UNESCO NATCOM). The symposium which was followed by the presentation of awards to journalists was held at TANGO.
Read more on AllAfrica.com

Paid Android Apps Now Available in Philippines
This is exciting news for Android users here in the Philippines. Google announced recently that Android Market will increase consumer access and developer support for paid applications in several new countries including the Philippines.
Read more on Cebu Tech Blogger

Cleveland Browns Secure Domain Name “browns.com” ??? Take It To The Dawg Pound
The World Intellectual Property Organization’s Arbitration and Mediation Center (“WIPO”) ordered tha
Read more on Forbes

Senate bill amounts to death penalty for Web sites
Protect IP Act requires search engines, some Domain Name System providers, and other Internet companies to “disable access” to Web sites accused of piracy.
Read more on CNET

BCG Matrix applied to web portfolio investment

Posted by: Admin  :  Category: Domain Names & DNS

Bruce Henderson’s BCG Matrix is our focal point on my blog today. Today’s idea is about the application of the classical BCG consulting model to any domain investment strategy. What is the BCG Matrix? It is a growth-share model used by management consultants/business executives to analyze the performance of business units/product lines within their portfolio. To be specific the Matrix analyzes the relationship between a company’s profitability and market share using “star”, “question marks”, “dog” and “cash cow”.

BCG Matrix

BCG Matrix

Cash cows: These are businesses in mature markets which provide funding for high-growth ventures.
Stars: These are above average return products that have high growth and high market share. You can escalate their growth through funds raised from the cash cows. The main distinguishing feature is high growth rate and high market share potential.
Dogs: They have both low returns and growth and should be divested from in order to balance your portfolio. The distinguishing characteristic here is low market and low growth rate.
Question marks: They are low-return but fast growers which you need to intensify investment to turn them into market leaders before it’s too late and they are already dogs. These are products which have a high growth rate and low relative market share. Also known as problem children.

Application to domain investment

If you are a domain investor/webmaster like me, you can apply this model at different levels of your business. At the business unit level let’s assume you own a domain portfolio consisting of ccTLDs and gTLDs, then it helps to see exactly which TLDs are cash cows, dogs, question marks and stars. For example, if your portfolio consists of .com, .es, .za, .ru etc. It helps to analyze each extension critically in order to determine areas of high/low growth rate and high/low market share. If .COM is your cash cow, then it helps to identify another TLD e.g. .za with above average ROI. The goal should be to convert these new TLD stars into cash cows of tomorrow. In the same vein “question marks” e.g. .de which just make you enough money to break even should be either scaled or eleminated altogether from your portfolio. They portend the risk of turning into capital destroyers or dogs. Last but not least particular attention should be paid to “dog” e.g. .cn in any domain portfolio. You should be careful here not to nip the flower in the bud too early. In most domain investors’/developers’ portfolios, the dogs tend to be speculative investments in exotic TLDs (think of .tl, .tm etc.).

Particular attention should be paid to factors such as data/statistics availability (1 year minimum), business risk factors and market risk factors. Likewise webmasters can weave the BCG Matrix into theme websites in identification of new strategic growth areas for their portfolio.

The BCG Matrix can also be applied in the portfolio analysis of a small/medium/large/ media company whose business units include domain sales, domain parking, website development and affiliate marketing. Again here you will need to determine which business unit fits the criteria of a star, question mark, cash cow or dog. Next you should make the necessary capital allocation adjustment in order to balance out your portfolio performance.

Do you know how many stars and cash cows there are in your portfolio? Needless to say this is a powerful analytical tool in portfolio analysis, brand management, product management and strategic management. Ok that is my 2 cents about the application of the BCG matrix to domain investing/web development.

DNSblogs.com

Premium Domain Names Defined

Posted by: Admin  :  Category: Domain Names & DNS

I recently came across a new comment on an older post in which the commenter requested that I provide a working definition of what exactly constitutes a premium domain name. I wrote a post about this very topic some time ago, but re-reading it today, there is very little substantively speaking that I would change […]
Domain Name Blog