Pricing & Promotions of TLDs - Is Your Billing System Holding You Back?

As the leading consulting firm to the Domain Name industry, we work with many of the existing gTLDs, ccTLDs and new gTLDs. During our engagements we do a lot of listening (as well as work) and this gives us a unique perspective on the key challenges the industry is facing. Recently, we are hearing feedback from many leading registries and registrars about their need for more dynamic pricing and promotions and their concern that there may not be enough flexibility in their billing systems to speedily handle their promotion plans. more

5 Common Misconceptions New Registries Have About Domain Revenue

It is wonderful to see the floodgates open and see so many new gTLDs launch -- 417 delegated as of October 4th. As registry senior management's focus switches to operational matters post launch, it is now time to consider how the new registries will deal with revenue recognition and its impact on financial reporting. This is primarily the CFO's responsibility, but senior management must be mindful that improper domain revenue accounting will lead to corporate reputational damage. more

Are .Brand Applications Being Scared Off by Financial CQ’s?

There has been an upsurge in brands withdrawing their applications. The timing undoubtedly is due to the deadline of 70% refund of the $185k application fee. But why are so many of the withdrawals .brand/closed generics? Having been involved in drafting of financial projections for over 50 applications and having answered a number of financial Clarification Questions, I believe that the major reason why there is an acceleration in .brands, especially closed ones, is that they are receiving a large number of CQs... more

4 Items for Applicants to Consider in Planning, Even As You Wait

With the effective deregulation of the domain name industry through the imminent launch of up to 1,000 new gTLD's, the competitive landscape is going to get a whole lot hotter over the next 24 months. We will likely see some financially and commercially successful ventures. It is likely that we will see many unsuccessful ones as well. The gap between success and failure will be slim. more

New TLDs: Finance Dept. Role, Part 2

Last week I wrote about accounting, reporting and promotions. This week, I want to focus on the financial department's role in launching services, renewals and foreign exchange risk management. ... In most businesses, the finance team usually takes a back seat during launch of services as business activity slowly increases in the months that follow. However, in the domain industry, with up to 30 percent of lifetime sales earned in the first three months of launch, it's essential that finance takes a hands-on role from the start. more

Role of Finance Leaders is Specialized in TLD Launches

When I first entered the domain industry as head of finance and operations at .MOBI, the company had just acquired its licence from ICANN. I did a quick overview of the business environment through a financial lens. My first impressions were predominantly positive. Sales were generated up front on a cash basis, which put registry operators in an enviable operational cash flow position... Outsourcing the back-end registry operations meant that we could tie cost of goods sold (COGS) to activity. But I had a steep learning curve... more