Showing posts with label premium. Show all posts
Showing posts with label premium. Show all posts

Thursday, October 25, 2018

New Extension Sales Sept 23 - Oct 22, 2018

This was one of the quieter months of new domain extension sales since I began this series (see links to previous reports at bottom).  The average number of sales per month in the previous seven reports was 120 compared to just 68 this month. The number of sales was down substantially from last month (313), although the sales dollar volume was only slightly lower. The average sales price of $2955 was about quadruple last month's figure, however and the median was also substantially higher this month.

Summary

During the monthly period ending Oct 22, 2018 there were
  • 67 NameBio recorded ngTLD sales in the 30 day period, with $180,800 total sale volume.
  • The average sales price was $2955. The median price was $801.
  • In terms of major sales, 1 was > $50,000, 8 were > $5000 and 29 > $1000.
  • Sales in 22 different extensions, with .top, .global and .link most common.
  • The highest sale price was design.online $57,500, dispatch.app at $15,000 in second, while four different .global names (switch, scoop, cyber and leap) tied for third place.
  • There were ngTLD domain sales during the month at 11 different venues. Dynadot had the largest number of sales (25) followed by Alibaba Cloud (15).
  • The types of domain names that sold: 69% were single word,  14% were short (<=3 letters), and 9% were geographical.
  • Registries accounted for almost 64% of dollar volume, but less than 19% by number.
  • In 2018 YTD there have been 1196 ngTLD sales listed on NameBio, with an average price of $3675. Sales volume is just over $4.4 million YTD. 



Extension Breakdown


I list in the table on the right  (click on table for a higher resolution version) those extensions that had either multiple sales in an extension, or a total monthly sales volume of  $500 or more. They are arranged by decreasing total sales volume, but the number of  sales for each are also listed.

The following extensions had a single sale: agency, city, gmbh, life, pics, run, site, and vip.  In total, there were sales during this period in 22 different extensions,

The Highest Value Sales


Below is a list of the major sales for the reporting period. Only 2 (or possibly 3) of the top sales were not registry.
  • design.online $57.500  Sedo
  • dispatch.app $15,000  UserScape
  • switch.global  $8,000  DotGlobal
  • scoop.global  $8,000  DotGlobal
  • cyber.global  $8,000  DotGlobal
  • leap.global  $8,000  DotGlobal
  • edge.network $7515 Sedo
  • DMV.online $5101  Dynadot

Venues


The month saw a steady increase in new extension sales at Dynadot and a drop at Flippa.  As pointed out last month, new domain extensions essentially never sell at GoDaddy (at least not above $100). Here are the venues with multiple new extension sales during the month.
  • Dynadot 25
  • Alibaba Cloud 15
  • Dot Global (registry) 9
  • Sedo 8
  • BizCN 2
  • Jiangsu Bangning (registry) 2

Names That Span Dot Effectively


Some of the domain names from this reporting period that I personally feel make excellent use of the extension as congruent with the domain name are the following:
  • design.online
  • citizen.group
  • simple.solutions
  • auto.finance
  • rock.city
  • click.link
  • chain.global
  • read.life
  • sun.group
  • switch.global
  • edge.network

Great Value


Interestingly a few of the great names went for value prices.  For example click.link was just $123 and rock.city only $130.  In my mind the greatest value this month though was simple.solutions that sold for only $122. The word winter sold in the .xyz extension for merely $101,  a  true bargain price. These show that, at least sometimes, you can get memorable names in the new extensions at excellent value.


Types of Domains


We also performed an analysis of the type of domain name.  The majority (69%) were single word domain names (+ extension of course), although short (defined as 3  characters or less) were also popular (14%).  About 9% were geographical terms.  Numbers remain unpopular in the ngTLDs with only 2 in this  dataset.  Multiple word domains were rare this month, with just a couple off 2 word names and  one 3 word. Three of the names were adult in nature.

Year to Date 


So far in 2018 there have been 1196 ngTLD sales with an average sales price of $3675. The total value of 2018 reported ngTLD sales up to the day of writing is just over $4.4 million. For reference last year saw $5.2 million in total new extension sales.


Discussion


This report has mixed news for new domain name investors. While the number of sales and number of extensions, are both down from last month, they are in line with the year overall.  On average, this month just over 2 ngTLD sales are reported per day in the NameBio database.  The sales volume  has remained almost constant and the average price is up this month (at least compared to the previous two reporting periods).

One reason I produce these reports is to provide guidance to ngTLD investors to help them optimize their chances for success. The fact that ngTLD sales seem to be trending up on Dynadot may be actionable information.  Outside the registry sales, Sedo continues to be the venue that obtains the highest prices for quality new extension names.  Also, this month confirms a general trend  that single word domains with a good match on the two sides of the dot are most likely to sell, although short acronym names and geo names also find traction in the new extension space.  Surprisingly few number domains sell in new extensions, only 2 during this reporting period.

While I show sales by extension, I would caution those investing in new domain extensions that, unlike the com/net/org/info space, it is not primarily the extension that matters, but rather the match between the name and the extension.  As such, high value sales are possible, even if not probable, in almost any extension even those without a sales history.

It is still prudent to be cautious when investing in these extensions, and still true that overall the return on investment seems better in .com. The difference is possibly narrowing, however, and if the comparison is with other legacy extensions, or country code extensions, the case for new extensions could be made (although is still arguable). For those new to this field, my post on 12 reasons why end users (and domain investors) might want to consider new domain extensions may be worthwhile. The health of new extensions, ultimately, depends on the adoption of these extensions in significant websites.

Notes

The NameBio database (or at least the portion publicly reported) does not include sales with value less than $100, nor sales from a number of venues such as Afternic, Undeveloped or Efty (unless buyers or sellers report them individually), nor from most of the ngTLD registries, so it is difficult to estimate how complete a record this is of all ngTLD domain name sales. Sometimes sales are posted on NameBio after their recorded sales date and therefore never appear on the daily report although they do appear in the NameBio database.


Previous Reports


Here are links to the three previous reports in case you want to do monthly comparisons:

Next Report and Other News


We will issue our next report in late November, and it will cover ngTLD sales for the period from Oct 23 through Nov 22. This monthly update on publicly reported ngTLD sales is offered as a service to the domain community.  While I strive to be accurate, no implied guarantee or warranty is associated with this report, and readers should independently verify information before using it in any domain investment decisions.  As always, we welcome comments and corrections. We report regularly on domain name news, with a special emphasis on the new extensions, on our Twitter feed.  Why not join the almost 1600 domain investors, venture capitalists, tech experts, startup owners and other great people that already follow us @AGreatName?  If we can be of assistance in helping you find a domain name at a value price, or using a domain name phrase in a marketing campaign, don't hesitate to contact us through our website (or via direct message at Twitter).



Original post Oct 25 2018.

Disclosure:  I currently hold a number of  ngTLD domain names. I am  not associated with NameBio, but would like to acknowledge their incredible database and their generosity to make it available to the domain community. This, and all other postings at this site, are offered for educational purposes and should not be interpreted as domain investment advice. You are responsible for your own domain investment decisions. 

Thursday, August 2, 2018

Scaling Domain Sales Data

It is always important to make sure we are not tricked by apparent trends.  If you regularly read the  NameBio daily sales report, as I do,  it certainly seems that almost all domain name sales are in the .com extension, and that the number of new global top level domain (ngTLD) sales is minimal.  Not infrequently there is not even a single new extension sale in the daily report report. However, most domains that are for sale are also .com.  I wondered if we scaled for this, whether .com would still be 'king'.  Here is what I found.

The Study


I wanted recent data, in case there are any temporal changes, so I decided to base my analysis on domain sales so far in 2018.  On the day I performed the analysis (July 30, 2018) the NameBio database showed a total of 48,010 domain sales so far in 2018. It is easy with NameBio to control which extension, date range, venue, etc. for any search.  When I selected 'all  ngTLD' it indicated 649 sales of ngTLDs so far in 2018.

If this is end of story, it certainly sounds pretty gloomy for the ngTLD investors.  For every ngTLD domain name sold, 74 are sold in other domain extensions (the majority in .com).  On average, there are only 3 sales in all the ngTLDs reported on NameBio each day.

Not So Fast


However, it is important to take into account the number of domain names that are for sale in each category, and scale the sales with that information.  That majority of domain names registered and for sale are certainly in com/net/org and a  number of country codes. Using Verisign global domain market most recent stats 333.8 million total domains registered, and 20.2 million ngTLD registered.

Therefore, if we scale the sales data using those numbers  we have:
  • So far in 2018 1 domain name has been sold for every 6953 registered in all domains.
  • So far in 2018 1 ngTLD domain name has been sold for every 31,125 registered
It is important to realize that these number are for domain names registered, many of which are not for sale. Therefore it's not quite as negative as the numbers indicate. Nevertheless, if we accept the assumptions of this study (see below) that the ratio of for sale domain names to total registered is approximately similar in the two groups, then the relative numbers are valid.

While the picture is not as bleak for ngTLD sales as the 1 sale for every 74 in all extensions would suggest, still this suggests that if you hold a ngTLD the odds of it selling are about 1 in 4.5 compared to the industry wide probability of sale.  While still gloomy for ngTLD investors, but roughly 5:1 ratio not as bad as the 74:1 ratio you would assume from just reading daily domain sales reports. Many more domains are com than anything else, and many more sales are com too, naturally.

Does Price Matter?


It is nice that NameBio statistics give you things like number of sales, average price, etc. for any search.  I honestly had no idea what I would find when I looked at average sales price, but price information so that should be considered too. I mean most domain investors would happily sell fewer domains if each sale was for more dollars.  I was surprised by what I found.
  • So far in 2018 average sales price of all domain names $1393
  • So far in 2018 average sales price of ngTLD $5531
The average selling price, at least in the 2018 to date dataset and using all NameBio reported sales, show a result that is about 4:1 in favour of ngTLD.

So overall the ratio seems roughly 4/5 comparing ngTLD to all domains, about 1/5 as likely to sell as any old domain, but when it does 4x more cash per sale! This would suggest that overall return on investment is approximately equal whether one invests in ngTLDs or in other (mainly .com) extensions. But....

Not So Fast 2


There are two main factors that we have not taken into account that need to be considered before we jump to that conclusion, however. The first of these is the issue of premium domain names. The registries take some of the ngTLD nice sales for themselves, by keeping premium names and  offering them directly to end users at higher prices. The NameBio database  has a mix of sales by individuals and domain name investors, and someof the registry sales (only a tiny portion really, mainly in .global and .top extensions in recent data).

It depends what the question is whether the registry sales  should be included or not.  If we are interested in the overall value of the domain industry for new versus all extensions, it really does not matter if the sale was made by an individual who used to own the name, a domain investor, or a registry.  However, in domain investing communities they naturally feel that the registry sales should be excluded.

I recently looked, in same dataset, at the issue of how much of the reported sales are registry.  You can read the full report here, but I found that while only 29% of the number of ngTLD sales are by registries, in terms of dollar value of sales about 54% are registry. 

Combining this with our previous two factors (number of sales ratio, average selling price ratio), the overall comparison of ngTLD to all sales suggests a factor of (4.0/4.5)x(0.47) = 0.42.  Therefore our overall conclusion is that investment in ngTLD domain names currently has a return on investment of roughly 42% that compared to the total domain name market.

A second issue is whether renewal costs should be taken into account in some way in scaling the expected return on investments.  While the most important legacy domain extensions (com/net/org/info) have fairly stable registration and renewal prices often in range from $8 to $12, the model for many (certainly not all) of  the new domain extensions has been to offer very low initial registrations but renewal rates that are higher in subsequent years. There is also much more variation from registrar to registrar.  When I did an analysis for renewal rates of new extensions, for the most popular ones both in registrations and sales, I did not find that renewal costs were higher for new extensions.  It is true that some premium domains also come with premium renewals.  While a correction factor might be argued, it may well be offset by lower acquisition costs and (for non premium) slightly lower renewal rates of the new extensions.  Therefore I did not apply any factor for possible differences in acquisition or holding costs.

The Assumptions


In any analysis it is important to keep in mind the explicit and implicit assumptions made.  I itemize the most important ones below.

  1. We used NameBio data, therefore this study only applies to domain sales over $100 and only those in the venues that are reported on NameBio.  The possibility exists that ngTLD sales are over or under reported because of this assumption.
  2. This study uses data only for 2018 year to date.  Some NamePros users have looked at similar data using Sedo only sales for the previous two years, showing that the ratio was same order of magnitude, but ngTLD sales were smaller than for 2018. That makes sense to me, I think for whatever reason the past 12 months have been more favourable for ngTLD sales.
  3. We have taken out the effect of registry sales, so the final ratio reflects only non-registry sales.
  4. If the ratio of domains for sale to total registrations varies between ngTLDs and all domain names, that would influence the data.  If one looks at parking data, the ratios are not that different.  I think to first order the ratio is similar, but I totally accept there is probably a minor influence due to this. I suspect it would be unfavourable to the ngTLDs (a higher ratio for sale), but I do not have data to prove this.
  5. For reasons indicated above, we have not applied a correction for acquisition or renewal cost differential, if there is one. 

Some Conclusions


So what does this all mean?  While considering the assumptions made and how they might influence the data, I think we can conclude with a fair degree of confidence right now the following.
  • There are on average 3 new extension domain sales per day on NameBio.
  • Less than 1.5% of all domain name sales are in the ngTLDs (at least for publicly reported >$100 sales).
  • The percentage of all domain names registered that are in new extensions is currently about 6.0 %.
  • If one takes into account both average selling price and number of sales, and also correct the data to exclude registry sales, on average the return from investing in ngTLDs is currently about 40% of the value from investing in all domain name extensions. The number of domains sold is less, but the average price is more, although half of the sales revenue goes to the registries.
I suspect it is true that, on average, domain name investors these days are not making money (clearly some are making a lot of money, but many more are losing money when all costs are considered).  This analysis suggests that on average new domain investors are losing more money. 


What Does It Mean?


I think that the numbers support the idea that the easier money is in com, that it is indeed 'king' even when data is scaled. However, it's not as one sided as first seems, and as some often claimed by new extension critics.

I would not place too much credence on the high average selling price found for ngTLDs. It was certainly driven by a few very large sales, most but not all registry sales, in a relatively small data set.  I expect a different number if I repeated this in a year time, probably a lower average sales price. Nevertheless, I have taken out the registry sale impact in the conclusions of this study.

If other extensions offer better returns on investment, should anyone ever buy ngTLDs?  I think so, and in this post I gave 12 reasons (with real use examples) why new extensions sometimes make sense. I also posted previously on why new domain extension investing may be the right choice for some. In my opinion it particularly makes sense if one of the niches that you have expertise in is a good match for a new domain extension.

Another possible argument for new domain extension investing is that it is "the future".   I don't think at the current time any of us can definitively say whether this is true or false. Most of the extensions were introduced two to three years ago (general availability) and it is discouraging that they have caught on in such a limited way.  On the other hand, sales data are on track to make 2018 the best year yet (by a small factor) and there is no doubt that the majority of the big sales have taken place during the past 16 months.

It is true that .com has remained dominant for a long  time, and many brokers, marketplaces and domain investors continue to push it as almost the only extension to consider. Things do change however.  For example the computing experts in the 1990's and even early 2000's argued that with minimal market share Apple had no future, and that open PC systems would always dominate.  The day I write this Apple has just become the first company to reach the one one trillion dollar valuation mark.

I would not feel comfortable betting in favour of, or against, the long term adoption of new domain extensions. Personally I feel a few will eventually find wide acceptance and adoption (I think .top and .xyz are best placed to achieve this status), a number will find niches particularly for sole proprietorships and some will in essence die in obscurity even if they are not formally closed.

How many people, before it started to take off, would have predicted that .io country code extension for the Indian Ocean region would become a popular option for technology and other startups and sell for good prices?  It is not easy to predict domain name trends.

I certainly do not feel everyone, or even a majority, should invest in new extensions.  If you have developed expertise in com/net/org, feel most comfortable with those, it makes sense to stay in those.  Your domain investment is probably also less risky in the major domain extensions, depending on your names of course.  Those who do invest in new extensions must be prepared for a relatively long time window, and the  need to do more active promotion of their names.  They also should make due diligence regarding both analysis of what is selling and at what prices, as well as where it sells and how best to limit acquisition and holding costs.

It would be interesting to extend this kind of  analysis to look at specific extensions. For example, when scaled, is it better to invest in .org or .com or .io?  I have already done some analysis along these lines, and will report results in the not too distant future.


PS What Do You Do?

I feel it is important to try to be fair, open and balanced in any analysis. It is a fair question to ask what do I invest in personally, so you can assess any possible underlying biases I may bring to the analysis.  You can see almost 98% of my portfolio here. At the current time my portfolio has 13 .ca, 6 .co, 5 .com, 4 .pw, a few other country codes and one .net, and the rest (about 90%) is in new extensions. For my sales (all at modest values) up to this point, I have sold a single .co and  30 new extension domain names. I closely follow all areas of the domain name market, including extensions that I do not currently own but see value in (such as .org, .io).


Original post Aug. 2, 2018.
Slight grammatical correction (no content change) Aug. 9, 2018.

Links:


Fine Print

This post is offered for informational and educational purposes only, and should not be considered domain name investment advice. While an attempt has been made to be accurate, there is no implied or explicit warranty, and you are responsible for verifying any information of importance to you.

In a few cases there may be affiliate links will on this blog. This means I receive a small amount if users visit or make purchases via the link. You do not pay any additional charge due to using an affiliate link, and in some cases below the normal price. I receive no identifying information about who clicks, or does not click, any link. I never accept compensation to provide favourable review of any particular service or product.

I try to be fair, balanced and objective in my analysis.  If you feel this post does not meet that standard, please express your concerns to me.  As disclosure, I do have a domain portfolio that is predominantly ngTLD domain names, although I do also own a number of .com, .ca, .co and a few other country code extension domains..

The text of this posting is ©R. Hawkes, all rights reserved. However, you may, without permission, use reasonable length portions of the post as long as a link to this post is also provided. If you wish to use the complete contents of a post, please request permission. I am normally open to reprinting, but will consider each request individually. 

The images used are either those associated with a product or service, or Pixabay images believed to be available for use without attribution. If you see any image that you believe is problematic, please let us know and we will immediately correct the situation.

Wednesday, August 1, 2018

Renewal Costs and New Extensions

A discussion in a NamePros thread with respect to new domain name extensions (ngTLD) has touched on the topic of renewal costs.  It is often stated by ngTLD critics that renewal costs are prohibitive as one of their arguments against new domain extensions. I decided to take an objective look at whether this claim is actually supported by data. Here is what I found.

Finding Best Prices


Fortunately for us in the domain community, sites such as TLD-list allow anyone to easily find the best prices for domain registrations, transfers and renewals.  That site updates the data every few hours, so you can readily find the most up to data information for any of the extensions over the numerous registrars that they track.  Several other sites track cost data.  For example, if you look up an extension on NameStat the costs at various registrars are given on the right hand column.  One reason I prefer the TLD-list is that they include reviews for each registrar, and if you scroll to the bottom they will show you have a graph showing registration, transfer and renewal costs as a function of date.  This is useful information to see what a typical rate is, and it also helps you see if current deals being offered in an extension are a god deal.

Legacy Extension Costs


First off, I used the TLD-list data to find the least expensive renewal rate for the main legacy extensions that are widely traded. These data change every few hours, so you may find slightly different values, but these values reflect the best prices as of right now in each extension. Let me emphasize that these are the best prices, and the costs at any particular registrar may be more.
  • .com $8.75
  • .net $9.78
  • .org $9.99
  • .info $10.98
  • .io $29.95
  • .co $21.47
  • .ai $70.88
So for the most frequently held and traded extensions (com, net and .org) the renewal price is typically $9 to $10.  This does not vary much, as the wholesale costs to the registrar is only a bit less than this, and competition from the many registrars who handled these extensions keep it from going much higher as well.  Occasionally there are deals offered on new registrations and transfers, but seldom significant ones on renewals. If you browse daily NameBio domain name sales reports, you see frequent sales of .co and .io extensions, so I included those country code renewal rates as well.

Most Popular New Extensions


While it would be challenging to get data on renewals of all ngTLDs (over a thousand), I wanted an objective measure of rates for the extensions most frequently encountered. The nTLDstats site gives registration data for each extension. From that site I took the ten most registered of the new extensions. Together these 10 extensions currently account for 52% of the total ngTLD registrations and a large percentage of ngTLD sales numbers over the past year (at least) - for example see my monthly analysis at this link, and scroll to bottom of that post to see links for previous monthly reports.

I think we can accept the following extensions are representative of the most encountered ngTLDs.  I list the best (note prices updated to Aug 30, 2018) price (obtained via TLD-list) for renewal cost of each extension.
  • .top $4.99
  • .loan $11.50
  • .xyz $8.50
  • .club $8.88
  • .vip $6.99
  • .online $16.99
  • .win $11.50
  • .shop $25.95
  • .ltd $14.46
Four of the top 5 of the ngTLDs all have renewal prices better than the average of the best renewal rates for a package of .com, .net and .org domain names. The new extension renewal rates are all significantly better than some popular extensions such as .co and .ai and many others.

Lest you think these rates are only for some obscure registrar you don't want to deal with, the lowest rates for .top, .loan, .online and .win are at NameSilo; for .club, .shop and .ltd it is Porkbun; for .xyz lowest prices are at Epik, and for .vip Dynadot offered the best rates at the date off checking. These are all registrars I respect and would or do use. Also, the rates at other popular registrars, such as Namecheap, are almost as low.

Premium Renewals


New extension domain names in some, but not all extensions, have certain names reserved and sold by the registry at higher premium values.  It depends on the registry whether these premium prices are only for the original sale, or if there is a premium renewal rate as well. Be cautious of these in your portfolio is good advice, and always check any name you are considering buying to see if it is 'premium' in this sense. I give potential users this advice in my domain descriptions (but potential purchasers should independently confirm the information of course!).  You can readily find this rate by starting as though you are going to renew any particular name using your favourite registrar site. I am glad that the newest significant ngTLD release, .icu, have standard renewal rates even on those that they are selling at premium initially. I hope that becomes standard across the ngTLD space.

Sensible Domain Investing and Costs


A big part of being successful in domain name investing, no matter the extensions you invest in, is to be quantitative and sensible in considering costs and likely returns.  Let's say that you can acquire a certain domain name for $25 initial cost, and the renewal cost in the extension is $5 per year.  If you reasonably estimate that you have 1 chance in 100 to sell it over a 5 year period for a price of $2000, then the investment does not make sense.  Your costs ($25 + 4 x $5 = $45 costs) multiplied by 100 is $4500.  But your anticipated price when you sell the domain is $2000, close, but not enough to make it a sensible investment unless you can improve either the price or the likelihood of making the sale. You should do an analysis such as this for every domain name in your portfolio.

Be Alert to Deals


I have not included the deals you can get on multi-year renewals if you know where to look, wait for the right deal, and shop around. I have renewed a .site for 5 years for $8.88 for the 5 years (not counting ICANN fees - I wish I had registered more at that rate, now gone), a .science for $5.88 (unfortunately no longer available), and you can occasionally register a .tech for 10 years for about $40.00 total. Sometimes I lock in renewal rates for the number of years if I expect to be holding the domain name for a long time because I both regard it as good and more valuable in future (e.g., emerging technology).  I have a number of domains registered for more than 5 years, and a few for 10 years.  Depending on the extension, 10 years is often the longest time you can renew a name. Lets all be smart about renewal costs!

Consider Registration Period


Those not in the domain name investing business often do not realize that, in general, when a domain name is transferred from one owner to another the registration transfers with it.  Let's say I bought a domain name and registered it until May of 2023 because my registrar offered a great deal on the multi-year registration and I wanted a number of years to try to sell it.  However, you bought it right off, and this extra registration now goes to you.  If you get the domain name at the same registrar, but now in your name, via a push, you won't even have to buy any extra registration time.  If you buy it through most resellers, or if the domain is transferred to your account at a different registrar, normally you will need to buy one extra year of registration when the name is transferred.  In this case you would pay one year of registration, but it would now be registered until  May of 2024. One advantage of purchasing domain names through  registrar marketplaces such as the Namecheap Marketplace, is that you will not have to purchase an extra year.  Make sure that you consider the registration period when deciding whether a price is appropriate.  I combine this and other tips from this post in the next section.

Tips

  1. Always check whether a domain name has premium renewals before acquiring it. If you do acquire premium domains, take costs into account in estimating the anticipated ROI.
  2. Use a resource like TLD-list to find the best current prices for registration, transfer and renewal on any domain name.
  3. As well as lowest price, do pay attention to reviews of different registrars when choosing where to register. Sites like NamePros can help learn of experiences of others. Also, even if there is a differential price, it may not be worth your effort to use an additional registrar.
  4. In both legacy and new extensions, renewal rates are only guaranteed for a limited period in future. If you feel you are likely going to hold a domain name for an extended period, either for development or domain investment, consider registering for multiple years.
  5. The currently registered period normally transfers with the domain name.  Take this into account when considering the price of a domain name, both as a buyer and a seller.

Conclusions


For the vast majority of ngTLDs really being used and held as investments, renewal costs are competitive to legacy extensions, and more often than not actually less. While this is true for the vast majority of ngTLDs, do be alert to premium names in some extensions, and to extensions that have high renewal costs.  You can frequently find extra savings in multi-year registrations, or by shopping around registrars.  Look into the current registration period when buying and selling domain names.

Original post Aug 1, 2018
Minor format change (line spaces, illustrative image - no content change) Aug. 5, 2018.
With the changes in the costs of the former Famous Four extensions I have updated the renewal costs to values current to Aug 30,2018,  and altered text as appropriate. 

Links:

Fine Print

This post is offered for informational and educational purposes only, and should not be considered domain name investment advice. While an attempt has been made to be accurate, there is no implied or explicit warranty, and you are responsible for verifying any information of importance to you.

In a few cases there may be affiliate links will on this blog. This means I receive a small amount if users visit or make purchases via the link. You do not pay any additional charge due to using an affiliate link, and in some cases below the normal price. I receive no identifying information about who clicks, or does not click, any link. I never accept compensation to provide favourable review of any particular service or product.

I try to be fair, balanced and objective in my analysis.  If you feel this post does not meet that standard, please express your concerns to me.  As disclosure, I do have a domain portfolio that is predominantly ngTLD domain names, although I do also own a number of .com, .ca, .co and a few other country code extension domains..

The text of this posting is ©R.L. Hawkes, all rights reserved. However, you may, without permission, use reasonable length portions of the post as long as a link to this post is also provided. If you wish to use the complete contents of a post, please request permission. I am normally open to reprinting, but will consider each request individually. 

The images used are either those associated with a product or service, or Pixabay images believed to be available for use without attribution. If you see any image that you believe is problematic, please let us know and we will immediately correct the situation.

Friday, July 27, 2018

Take A Look At ICU

Introduction


For some time I have planned to do a series with each post taking a deep dive into a single domain extension. I decided to start that with a recent extension that is still unfamiliar to many, ICU. When I first heard about the new global top level domain (ngTLD) ICU ("I see you"), I thought the extension was too gimmicky. However, upon a closer look, I changed my mind on the prospects for the extension. Let me share with you why I might see an ICU domain name in your future, whether you are a domain name investor or an end user.

What Does It Mean?


Officially the name stands for "I See You", although as many in the domain investing community have pointed out, ICU is the standard acronym for Intensive Care Unit, and I think the domain will see use with both meanings, and perhaps others. The domain name is meant to be location agnostic, use in any region, and while it is better suited to some potential applications than others, the extension is intended for a broad set of applications for businesses, organizations and individuals.

Some Stats


The ICU extension came into general availability on May 29, 2018. As I update this (Sept 11, 2018), the number of registrations is just over 75,000 (you can get up to date statistics from the nTLDStats site. Although the initial growth of ICU registrations has been slower than the runaway success of the APP extension, ICU has nevertheless grown at an impressive rate over the first two months and ICU is already into the top 50 of all ngTLDs. Registrations are an important, but alone not sufficient, requirement for familiarity with the domain name to grow.

Whether you are a domain investor or an end user, it is important to have registrar choices. This is convenient in consolidating your domain portfolio to just a few registrars. Also, registrar competition helps keep registration and renewal costs competitive. Registrars are still being added, but as I write this 42 registrars handle the ICU extension. This includes a number of the most commonly used registrars such as Alpnames, Dynadot, Gandi, Namecheap, Namesilo, Porkbun, Uniregistry, Webnames, and many others.

While there are ICU extension domain owners from 87 countries, the global distribution is far from uniform. The largest number of registrations come from the United States, followed by the United Kingdom, Seychelles, Spain, China and Russia.  Familiarity with the new extension will probably grow fastest in these regions, although it also means that more terms related to these regions will already be registered and therefore not available. The graph below (from NameStat) shows the global distribution and numbers.
Image courtesy of NameStat.org. Check website for most recent data. 


Pricing


The majority of ngTLDs (there are exceptions, of course) have not handled pricing well in my opinion. Generally initial bargain basement prices (often around $1.00 or less) followed by renewal costs of $30.00 or more per year. However, the registry reserved many of the best names as premium offerings at much higher prices, often thousands of dollars. Confusion reigned as some of these premium offerings renew at standard rates, while others renew also at premium rates. This resulted in many of the best names never getting used, and domain name investors were shut out of the most desirable part of the market in the extension. Fortunately, ICU seems to have learned from these errors in previous ngTLD introductions, providing more transparent and reasonable premium pricing and clarity with renewal pricing.

In my opinion the ICU extension has done the right thing with respect to pricing, and I will call their system smart graduated premium initial pricing. Initial pricing in the majority of domain names in ICU is modest - with promotions sometimes as little as $1.50 or even less. For more desired premium domain names, ICU uses a graduated system of pricing with four different levels, but 85% of the premium domains are at the first level that is not much different than the cost to register many standard domains in other extensions (it is about $16 at Namecheap). A small number of premium domain names are at the three higher levels. The exact values vary with registrar, but currently at Namecheap they are $78, $780 and $7800. To give a sense of the names in each category, words like chemistry, HDTV and trend were all available at the $16 level when I checked. Especially HDTV strikes me as a great bargain and I suspect one of my readers may pick it up soon. At the $78 level were colours such as blue and high traffic keywords like trips. When one goes to $780 some highly desired words that have sold for high amounts in other extensions are available such as cruise and matrix. At the highest level I could only find a few words, including some of the world's great cities such as the word Toronto.

ICU on their website makes it absolutely clear that renewals even of premium names will be at standard rates. I wish this simple approach applied throughout the ngTLD space! The announced renewal rates for ICU are also modest - for example at NameCheap, one of my favourite registrars, the renewal price is $7.88, less than regular prices for .com, .net or .org.

You can find who has the least expensive current prices to register, transfer or renew any domain extension at sites such as TLD LIST. The data are updated every few hours, so check just before you make a registration or transfer.

Promotion


The co-founder of ICU, Kevin Kopas, is well known in the domain name industry. Read Ron Jackson's excellent story on Kevin and the ICU extension on DNJournal. Early indications are that the management of ICU will be proactive and smart in promotion and supervision of the extension, and Kevin's expertise will no doubt play a large part of that. While their Twitter feed does not yet have many followers, ICU are doing a good job highlighting both available domain names and newly registered names and websites, and milestones reached by the extension.

The ICU management are not alone among ngTLDs in highlighting some of the sites using the extension, but I think their pioneer program where you can apply to have your ICU website promoted is a good idea. Visit https://nic.icu/ to learn about the program and apply to have your site featured. In Kevin Kopas' words (from the interview with Ron Jackson) the  pioneer program "provides media expertise to new and evolving businesses who are looking to create, expand, or improve their online marketing strategies. The program includes exclusive access to a digital co-working space with help from others and learning resources like a  21-module online media program aimed at bringing businesses closer to their customers by driving strategic and consistent message delivery across online platforms."


Resale Market


It is too early to have much in the way statistics on after market sales at this time. My expectation is that we will see resales, perhaps many, in the extension, but that the prices will be moderate. I think the initial pricing structure from the registry will tend to, at least for the first few years, keep prices in the range from $100 to $300 for most domain names. That is not to say that a few prime names will not go for much more, or that prices for a longer time frame may well be significantly more if the extension comes into widespread respected use. One positive sign for those investing in the extension is that it is already possible to list ICU domain names at Sedo, the world's largest domain market. I notice that a number of premium ICU domain names are listed on Undeveloped as well. Added note: there are as of now (Sept 2, 2018) three NameBio recorded resales of ICU, the first being SwimmingPool at $199.

Abuse


In this series I plan to briefly look at abuse statistics for each domain name. I find that some legacy domain name investors repeat claims that new extensions are disproportionately associated with malware. These claims are not supported by evidence. Among the new extensions some are better and some are worse than extensions such as .com and .net for spam. The vast majority of phishing attempts come from .com and a handful of country code extensions (this is not surprising since in phishing they are trying to emulate an established country, most of which use .com). In terms of spam, the professionals at Spamhaus are the world experts, protecting billions of individual email accounts from spam. They define a badness index which is based on a ratio of the number of sites associated with spam to the total number of active sites in that domain extension. It is scaled by a logarithmic measure of the total number of domains, since the same percentage in a heavily used domain name poses more of a problem.

You can use a form at this link to look up the badness index for any domain extension. Use the pull down box at the top left to select the extension (or type it in) and it will give you the badness index. These values change continuously with new data. As a new extension the long term abuse characteristics are difficult to know for ICU. On the day I updated this (Aug 27, 2018), the badness index for ICU was 1.4. This made it slight worse (lower is better) than com (0.62), xyz (0.71) and online (0.47), similar to net (0.90) and info (0.98), and much better than club (2.83),  biz (3.43) and top (5.56), and hugely better than the worst extensions that are the 'free' country code extensions. Note that these values change somewhat daily, so check at link for the most up to date values if important. Over the month or so I have been tracking the ICU value has been pretty consistent, slightly going down (i.e. better).


Actual Use


We are not quite two months into general availability of ICU, and normally it takes many months of a new domain extension before we see much in the way of actual use. The early signs are extremely encouraging for the extension, however. For a domain not yet four months in general availability, the number of actually operating websites is more than decent for a ngTLD. It is first in growth trend as I update this (Sept. 11, 2018). As of today ICU has 259 sites in the Alexa 1M, or one per about 300 registrations which is excellent. By comparison the APP extension is 1 in about 2675, TOP is 1 in 2500, the much older XYZ is about 1 in 940, and ONLINE, that promotes being highly used and is much older, is only slightly better at 1 in 580.

While there are critics of how well Alexa 1M (the one million most used websites according to their methodology) represents actual use, the fact that such a new extension already has any sites at all in the top million is impressive. For reference, there are about 1.9 billion websites in the world currently, so getting in the top million is something only 1 website in about 1900 achieves.

I highlight a few websites that are already operational on the ICU extension below. These are chosen not because they necessarily reflect the highest traffic sites, or the most elegant, but as different areas of application. There are also some adult sites making use of the extension which I did not include. I have no association with any of the sites listed below, and listing here should not be considered an endorsement of their products and services.

Rajkumar Agro Engineers

An agro-engineering firm based in India, Rajkumar Agro Engineers Pvt Ltd. uses the extension for their product line, sales and customer service. is a leading manufacturer, exporter and supplier of specialized equipment such as cutters, oil expellers, wood splitters, brick making equipment, small mill equipment, pulverisers, post hole diggers, etc. Their website is fully functional with lots of equipment views, allowing their potential customers to "see" the equipment. If the use of "see you" in the sense of catalog offerings takes off, we could see a lot of demand for the ICU extension.

Hairstyle Gallery

There is already a fair amount of use of ICU in sites promoting fashion, jewelry, etc. Some of these are information aggregator sites seeking ad revenue, while others offer original content. Some use the information to indirectly promote a business. One example is hairstyle.icu site that shows images from a huge array of hairstyles, for both women and men. Literally everything from wedding hairstyles to styles well suited to frizzy hair. It appears that the site was operational for a couple of years, but have now adopted the ICU extension that fits their function perfectly.

UltimateCrypto

Not surprisingly, there are already ICU sites operational in the crypto currencies field. One that I briefly examined is CryptoMarketCap.icu, that provides up to the second valuations on a large number of different cryptocurrencies. On the date I checked there were 2024 different currencies being tracked by the online site. As well as the value, change, volume, etc. for each currency, at the top of the page it provides the total amount of funds in cryptocurrencies.


Travel

A site using the premium name travel.icu offers an easy way to find flight and hotel options in cities around the world. You enter a city, for example I tried Toronto, and it lists both the major and minor airports for the city. Then select one from the list, and,at least for the cities I tried, it goes to another ICU website but this time with the code for that airpor - e.g. Pearson airport in Toronto the site was YYZ.icu. From there you can find flight, or airport, options.



ICU

Of course the ICU people themselves have a great website operating with the extension. On it you can see what is new with respect to the extension, learn about (or apply to) their pioneer program, see some options for available ICU domain names, or find a registrar that handles the extension. Go check them out at nic.icu!

Want to promote some other operational ICU sites? Why not leave a comment on this blog with a link to the site?

Additional Ideas


The sites listed above are all actual in-use websites built on the ICU extension. To complement these I wanted to highlight some other ways I see the extension being used effectively. This is done through some of the domain names I hold personally. All are available for sale currently. Simply enter the domain name in a browser, or click on the link provided, to go to a sales lander with additional information and a purchase option.

ultrasound.icu

Ultrasound is best known as a safe medical imaging technique, but it also finds use in certain therapies, structural testing, quality control, etc. This domain name, with the new ICU extension is a perfect match to an imaging technology, and could be used with a company, distributor, clinic, reference site, etc. This application also works if we regard ICU as an abbreviation for intensive care unit. Get registration dates, price, automated worth estimates and purchase option(s) at the link.  

SeeMe.icu

This domain name would be a great fit for an app, website, club, career coach, therapist, or a plethora of other potential uses that encompass the idea of "seeing me". Use the link or enter the name in a browser to get more information or to see purchase options.

happiness.icu

While not as direct, perhaps, as the other examples in this section, I think one really powerful use of the ICU extension is in senses such as "I see you" happiness. The highly desired word happiness is taken in most popular extensions. Coupled with the new ICU extension, various uses are possible for this memorable domain name. The domain name would be ideal for a therapist, psychologist, researcher, business, or organization that worked in the field of positive psychology. It also is a perfect fir for sites that more generally promote a happy life, for children or adults. The name happiness is high searched on Google (more than 600 million searches!). Why not be one of the first to put this new extension to work in promoting a healthy, happy lifestyle?

patterns.icu

Whether it is quilt or craft patterns, or patterns in big data, this domain name is short and memorable. It couples really well with the ICU (I see you) domain extension. Get registration dates, price, automated worth estimates and purchase option(s) at the domain name link.


macro.icu

The short, memorable, high value versatile word macro coupled with the ICU extension makes a great domain name. The word macro can refer to macro photography, macro economics, macro management, as well as other technical terms. The 'I see you' works especially well with macro photography. The name macro is high searched on Google (more than 16 million SERP SLD). We are offering great value in this valuable (domains including 'macro' have sold37 times) keyword - why not pick it up today? Enter the domain name in a browser, or use the link, to obtain additional information, price and purchase links.

Closing Thoughts


Whether an end user looking for an innovative domain name for a new website, a company looking to rebrand, or a domain name investor, you should consider ICU as an option. It is cost efficient both to register and to renew, and early indications are that the domain extension will be effectively promoted and based on early trends may well find wide adoption. Costs are very reasonable to pick up a highly desired single word domain in the extension. An extension worth considering? I see you!


Original post July 28, 2018

Minor format changes Aug 3, 2018
Registration data, Alexa, abuse data, resales info updated Aug 27, 2018
Data and associated text updated, one example removed as now sold. Last update Sept. 11, 2018

Some Links:




This is the first in a series of posts each taking a deep dive into a single domain extensions. Stay tuned to the blog for others in the series (you can sign up to receive all new posts by email if you prefer - see box in the right hand column). I will also announce them on my Twitter account. The next in the series will be on the SPACE domain extension.

Fine Print
This post is offered for informational and educational purposes only, and should not be considered domain name investment advice. While an attempt has been made to be accurate, there is no implied or explicit warranty, and you are responsible for verifying any information of importance to you.

In a few cases there will be affiliate links will on this blog. This means I receive a small amount if users visit or make purchases via the link. You do not pay any additional charge due to using an affiliate link, and in some cases below the normal price. I receive no identifying information about who clicks, or does not click, any link. I never accept compensation to provide favourable coverage of any particular service or product.

In the case of ICU I have no formal affiliation with the owners, registry or anyone else associated with the extension, and obviously do not speak for them. I do own a modest number of ICU extension domains, some of which were covered in this article. I have sold one of the three publicly reported .icu resales.

The text of this posting is ©R.L. Hawkes, rights reserved. However, you may, without permission, use reasonable length portions of the post as long as a link to this post is also provided. If you wish to use the complete contents, please request permission. I am normally open to reprinting, but will consider each request individually. The images used are either those associated with a product or service, or Pixabay images believed to be available for use without attribution. If you see any image that you believe is problematic, please let us know and we will immediately correct the situation.


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