The Domain Market is irrational but does that mean your registry should be on Pricing?
The graph above represents the spectrum of potential retail prices and the corresponding number of domains with equal or greater estimated rational value to that price. The question is that if the world was rational and transparent then what number of domains could justify a value above retail. In this illustrated example the greatest number of domains multiplied by the retail price shows that based of the extensions inherent value the best fit for retail price is $50 per domain. Of course the world isn't rational,...Read more
Where does market reality meet new gTLD registry expectations?
It is interesting the so many of the "technology focused consultants" when asked about market size or potential registry valuations answer with replies like "its too difficult to be very specific about market size but there are 230 million domains registered - don't you want a part of that?" or "whatever the price is at auction on the day". Market size is a critical part of any registry valuation, and if a valuation cannot be clear and concise with references to the actual data used to form an opinion - it isnt...Read more