New web extensions: some strategy

During the next round of ICANN’s call for applications, a new element has emerged to increase the chances of success of any project to create a new extension or registry on the Internet.

The next round of ICANN’s call for applications to create new Internet extensions is approaching, and if the topic is of interest to entrepreneurs who want to position themselves to create a new registry aimed at authorizing the creation of new names, it is well to prepare not to make the mistakes of the first round of the 2012 call for applications… if you want to make money.

A bit of history

We are talking about the year 2012 because it is the year that “officialized” new registries such as many .MARQUE, as well as many extensions such as .CLUB, .FINANCE – .VIN – .BEST – .FILM and many others. Actually, these projects were prepared several years ago to be ready on the date of submission of applications.

Let’s not forget, this was a big innovation at the time: the first in the history of the Internet, which allowed entrepreneurs to position themselves in projects for the creation of registries, and the objective of which many of them were to offer an alternative to the 237 million . domain names in the .COM registry. As a reminder, the registry that created the largest number of domain names resulting from ICANN’s first call for applications in 2012 peaks today at 4.7 million domain names : So beware of over-ambition when preparing your project.

Which method?

There are many methods to develop a registry (a new extension on the Internet): selling a lot of domain names at low prices, selling at the right price but selling less, focusing on Premium domain names, sell exclusively to a community, sell to a specific group. niche or geographic location, provide a CMS to support domain nameleveraging a .BRAND in an innovative way…

There is no magic method because there are many parameters and costs to consider, but if these were unknown when the applications were pre-designed in 2012, they are much more so today. Some mistakes that should not be made have already been clearly identified.

Talk before signing

A registry “must” be sold to grow because the volume of domain names generated also increases the visibility of the extension on the Internet. If the creation of massively free domain names is a popular strategy, this does not mean that the project will be profitable. What is known today, however, is that the costs associated with creating a registry can be greatly reduced from the outset. Therefore, these costs must be studied upstream, negotiated and contractually validated with the various service providers.

Many professionals offer to create new additions on the Internet: consultants, accredited registrars (often called “Corporate”), industrial property but also the backend logs. As a reminder, the last registry is a mandatory technical partner when submitting an application: without a contractual agreement with it, it is not possible to create a registry.

Part of the difficulty in communicating awards today is that ICANN—the domain name governing body for which applications are applied for—has not yet communicated its final methodology, nor the date for submission of applications. However, it remains easy to estimate the price of an application, because these costs should vary slightly in relation to the creation of new Internet extensions that aim to sell domain names thanks to the network of accredited registrars (“Registrar”). Since the price in the registry, for the attention of accredited registrars, is often determined according to the level of service and the cost of the last registry, it is advisable to consider a certain number of elements before choosing the right provider. .

Kill costs from the beginning, but not only

If the price of the service provider is an important element, we found that it will be possible to put pressure on a number of other parameters before committing to a Registry project. If these costs were difficult to identify during the first call cycle in 2012 because they were unknown and with a limited number of service providers, they are now well identified and new parameters have also emerged on which to be interesting to examine Stop.

Many service providers: some very comprehensive

Interest in the topic of creating new Internet extensions – whether creating a .BRAND for the exclusive attention of a company or a generic extension intended for the commercialization of domain names – has led to the emergence of new providers.

If the method of submitting an application is now well documented with increasingly competent service providers who have been able to learn the lessons of the first cycle of calls for applications from ICANN, some have built complementary offerings for simple application writing, one of its aspects (legal or financial aspect for example), or the resolution of the registry at the end. Now it is possible to contact a single service provider, who will manage the entire service, greatly simplifying access to creating a new online add-on.

Consequently, the entrepreneur who wants to create a new registry now has more competent, more complete and more numerous professionals. It is also this democratization and clarification of the process of creating an Internet extension that gives it stronger negotiating power before engaging with one or more partners.

A good strategist

Did you know that some registrars pay (well) less than 1 euro to have their domain names created with their last registrar? Be careful though, this price is often negotiated according to the volumes anticipated in the creation for a given period. Negotiating this price upstream is important because the registry sells to accredited registrars who themselves will increase their profit margin when they sell each domain name to the end holders (registrars). In simpler terms, if a registrar decides to sell domain name creation to registrars for $8, $1 will go into the pockets of the latter registrar. However, note that this is not the only cost when creating a new domain name and there are other parameters to consider when contacting your technical service provider: storage service, abuse monitoring, reporting I CAN, GDPR management… Don’t worry though, there are plenty of service providers and they want you as a customer. These services are often offered when the service is introduced and thus make it possible to deal with the best service provider if one of them is missing from the list of essentials.

Although the “price” element is a bargaining chip, another much more subtle parameter has emerged: no, it’s not about the core marketing associated with the release of a new online expansion. This is the complement provided by your service provider: will it also be able to contribute to the visibility of new domain names? Is there an essential tool to make your plugin stand out from the hundreds of new plugins that will be released at the same time as yours?

A gondola head to partner registrars or nothing!

Some recent registries have become complementary solutions offered by Internet service providers with one or more accredited registries. To fully understand what we are talking about, the back-end registry solution is imposed by ICANN to submit its application, and the newly created registry will be able to propose its extension to the network of accredited registrars. Please note, however, that the accredited registrars who will market your new domain names are not obligated to provide your extension. You should know that there are currently 2554 accredited registrars and there is no guarantee that they will provide your web extension. While the latest registries will provide the gateway for accredited registrars to “could” be accredited, that doesn’t mean they want to or don’t want to. Also, it is the registrar who decides what to offer or if he decides that your extension has little value because the profit generated will not be significant enough…

Did you know that there are approximately 250 country extensions (two-character extensions called “ccTLDs”)? Add to this figure 760 from the previous call for applications in 2012 and the few original extensions like .COM and .NET.

These numbers are important to consider because they indicate that your new extension will be added to this list. A list that should grow a lot because you won’t be the only one wanting to create a registry during the next ICANN call for applications cycle.

When choosing your service provider, it is important – for the visibility of your project – to choose a service provider that has one or more accredited registrars because it becomes possible to negotiate a gondola bottom with them to significantly improve the visibility of the names of the your domain!

Know this, many providers have reorganized for the next round of ICANN’s RFP and they want you as a customer because the more domain names you create, the more money they will make, be it the latest registrars, accredited registrars or both. Let’s not forget, the mandatory registry ultimately makes money every time the accredited registrars in your web extension sell a domain name.

If your service provider is able to provide you with visibility into their accredited registrar’s window, it’s worth its weight in gold for your project. This capacity is an essential element in choosing your service provider.

There are over 1,000 web extensions today, and you don’t want yours to get lost in the choices offered by accredited registrars when a buyer searches for a domain name, you want to be in the store window, the first page of the display.

It is also important to know that some popular registrars market a showcase or front page presence: do you have to pay for it or do you want the accredited registrar associated with your registry to support you in its performance, at least for a little time?

The ICANN Registry Agreement is very clear and states that all accredited registrars must be treated equally. It is clear that the price on the register offered to one must be the same for others. However, nothing in this contract indicates that the service provider of your choice cannot provide you with additional visibility to its or its accredited registrars. Therefore, it becomes very important to choose a service provider that has one or more accredited registrars and negotiate this visibility with them in order to have you as a customer. Please note that there are many providers who do not have an accredited registrar!

This is a new element to consider in creating your project… perhaps even the most important?

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