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dotBERLIN at ICANN Mexico 2009 - The Big Business Presentation

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Information about dotBERLIN at ICANN Mexico 2009 - The Big Business Presentation
Finance

Published on March 3, 2009

Author: dotberlin

Source: slideshare.net

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dotberlin presentation at icann meeting mexico by dirk krischenowski at alac new gtld forum
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How big is the Business in new Top-Level Domains? 34. ICANN Meeting, 03 March 2009 Dirk Krischenowski, Founder and CEO dotBERLIN GmbH & Co. KG

What is Big Business?

The Domain Business Value Chain

The Domain Business Value Chain

.com - Follow the Money

Registries and Registrars finance ICANN Verisign Afilias Neustar PuntCat … GoDadday Yahoo Enom 1&1 … $ 32 M $ 30 M $ 2 M

The voluntary ccTLD Contributions .jp - US$ 161,000 .au - US$ 157,000 .nl - US$ 100,000 .de - US$ 90,000 .it - US$ 85,000 .ch - US$ 70,000 .ca - US$ 64,000 .fr - US$ 44,000 .eu - US$ 40,000 .us - US$ 40,000 .br - US$ 40,000 .br - US$ 30,000 … .ly - US$ 300 ================ US$ 2,300,000

Fees of the gTLDs to ICANN

First and Secondary Market

First and Secondary Market

First and Secondary Market .de registration revenues* € 14 Mio .de domain sales** ~ € 30 Mio * DENIC annual report 2008 est. ** Sedo annual report 2008 and other market figures

Registry Revenues today (annually) Verisign, Inc. 80 mio .com domains x € 5 = € 400 M 10 mio .net domains x € 5 = € 50 M Afilias Ltd. 5 mio .info domains x € 5 = € 25 M EURID 3 mio .eu domains x € 4 = € 12 M Tralliance 200,000 .travel domains x € 50 = € 10 M dotASIA 300,000 .asia domains x € 7 = € 2 M dotCAT 30,000 .cat domains x € 35 = € 1 M Good Business Fine Business

Verisign, Inc.

80 mio .com domains x € 5 = € 400 M

10 mio .net domains x € 5 = € 50 M

Afilias Ltd.

5 mio .info domains x € 5 = € 25 M

EURID

3 mio .eu domains x € 4 = € 12 M

Tralliance

200,000 .travel domains x € 50 = € 10 M

dotASIA

300,000 .asia domains x € 7 = € 2 M

dotCAT

30,000 .cat domains x € 35 = € 1 M

2nd Market – A Multi-Million $ Market … but no single leading company

The new TLDs

The new TLDs

Myth and Reality in new gTLDs Projection in 2000: 45,000,000 .name domains Reallty 250,000 .name domain names Today: Less than 1% of the projections The same with .info .biz .aero .museum … Sources: .name business plan 2000 and .name registration figures Sept 2008

Lower Expectations today* *Estimates by the author after field research No. of Domains (estimated, year 1) Revenue (per domain p.a. est.) Revenues (estimated, p.a.) .web > 1,000,000 € 5 > € 5 M .shop > 3,000,000 € 5 > € 15 M .inc 300,000 € 30 € 9 M .ebay 100,000 € 10 € 1 M .facebook 1,000,000 € 1 € 1 M .cym 50,000 € 30 € 1.5 M .nyc > 500,000 € 7.50 > € 3.75 M .berlin 100,000 € 20 € 2 M

Most expensive Domains in new TLDs sex.tld a.tld casino.tld shopping.tld business.tld hotel.tld > € 100,000

Why there is a Market for new TLDs Domains are essential in today‘s communication, especially short and descriptive ones .com is overcrowded with 78 mio. domain names, the same for .de and others Local Internet & Search as megatrends More than 50% of search inquiries are local (acc. Google) Internet traffic is becoming more and more local (local CIXs)

Domains are essential in today‘s communication, especially short and descriptive ones

.com is overcrowded with 78 mio. domain names, the same for .de and others

Local Internet & Search as megatrends

More than 50% of search inquiries are local (acc. Google)

Internet traffic is becoming more and more local (local CIXs)

Internet Users like it short & descriptive 43% 26% 21% 8% 1% * Representative study, eco eV, Oct 2007. Question: “What is your preferred address to reach the mayors website?” www.mayor.berlin mayor.berlin.de www.berlin.de/mayor www.berlin.de/de/dept/offices/mayor www.berlin.de

Source Source: Domaintools.com (zone file .com/.net/.org/.biz/.info „ game“ ist one of the most frequently used business terms in domains* game 2,006,770 domains

A word on Domaining - It‘s like Gold Rush Registrars, Registries and ICANN earn a small amount on each domain Some Domainers hit the jackpot business.com shopping.com … … but most only get breadcrumbs

Conclusion The biggest commercial success in the domain business = .com success will not be dublicated There is less big money involved in new gTLD Nearly all new gTLDs will be small but fine businesses

The biggest commercial success in the domain business = .com success will not be dublicated

There is less big money involved in new gTLD

Nearly all new gTLDs will be small but fine businesses

Thank you! www.dotberlin.de/www.dotberlin.com krischenowski (at) dotberlin dot de

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