DNS ENTREPRENEURSHIP TRAINING WORKSHOP

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Agenda
• Introduction
• Understanding the DNS Market and the opportunities
• Recent market trends of ccTLDs and gTLDs
• Why these changes? and what does it say about the market
• What are the evolving business models

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Today: Top Level Domains
• Original TLDs:
com, .org, .net, .edu, .gov, .mil, .int
plus others (e.g., country-code TLDs)
• 2000 Expansion: Round 1
aero, .biz, .coop, .info, .pro, .name, museum
• 2004 Expansion: Round 2
.mobi, .tel, .asia, .cat, .jobs, .post, .travel, .xxx
• 2012: 1930 New applications received
• Today:
Over 250M Domain Names, 7% annual growth
7 gTLDs, 15 Sponsored TLDs, & 255 ccTLDs, 40 IDN
TLDs
• 2014 and beyond
~ 1,000s of TLDs to be added
When will the next expansion round occur?
Source: Verisign Domain Industry Report 4Q 2012

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What could change domain name and TLD market?
• Internet end users
Behavioral changes in the way they browse, look/up, navigate and search
Increased desire for self-expression and communication with like-minded
individuals or community (Twitter, FB, Pinterest, Tumblr)
Increased desire for “More, Better, Faster, Cheaper, Easier”
• Disruptive technologies
Eliminating traditional input methods (i.e. type-in address in a browser,
versus natural language search such as SIRI)
Means of access, i.e. mobile versus pc
• Regulation or de-regulation
• Change is inevitable

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But what is a Domain Name? – Really…
• An ASCII “label” on an IP address
• Label = Human recognizable and memorable
hence some names more valuable that others
• Basic utility of a domain name is the same regardless if its a ccTLD or a
gTLD
• Pointer to a resource on the Internet
• Necessary for routing traffic (because linked to IP address)
• Used for identity and communication
• The market value of a domain name has less to do with its functional
utility and more to do with its perceived or created value
• Ultimately it the DNS and IP that matters!

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The Domain Name Business Models Haven’t Changed
• Web 1.0 - $ value to VRSN
wishmorepeoplecouldenjoythefunaticannn.com = $7.85
Google.com = $7.85
Gambling.com = $7.85
• Web 3.0 - $ Market Value
wishmorepeoplecouldenjoythefunaticannn.com = $2.99 at Godaddy
Gambling.com = $20M at Sedo auction in 2005
But only $2.5 Million in 2011
Google.com = $$$$$? # 1 site in terms of traffic. 2013 Market Cap = $264 Billion *
* Source: Yahoo Finance April 1, 2013
This works if a TLD has scale and longevity. But how many have or
will have longevity AND scale?

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Names
Have value
10B apps
D/L from
Apple
Large Brands
Adopt &
Enforce IP
Domainname
growth
200M+
1999 2011
Domain
Tasting
& Adwords
Beyond
Web 2.0
20092002 2005 2008
Directories Google
Rises
Google as
Ad platform
MobileTwitter
Facebook &
User Generated
Content
PC dominated world ends
Web 3.0
Brands use
facebook.com/brand
On ads
Community
Has value
Web 1.0
Mobile /Social computing begins
Mobile apps
take off
Traffic has
value
Targeted
traffic to
Pre-existing
user
FB eclipses
Google as
Most
popular site
2010
Whereas the Web’s Business Models Have
2012
1930 new
gTLD Apps
Google applies for 101
and Amazon for 76
new gTLDs
2013
?
FB IPO
Gambling.com
sells for $20M
Gambling.com
sells for $2.5M
Highest secondary market
sale in 2012 is $1M
personalloan.com
46B apps
D/L from
Apple

7. © 2012 Architelos and/or its affiliates. All rights reserved. 7
Names
Have value
10B apps
D/L from
Apple
Large Brands
Adopt &
Enforce IP
Domainname
growth
200M+
1999 2011
Domain
Tasting
& Adwords
Beyond
Web 2.0
20092002 2005 2008
Directories Google
Rises
Google as
Ad platform
MobileTwitter
Facebook &
User Generated
Content
PC dominated world ends
Web 3.0
Brands use
facebook.com/brand
On ads
Community
Has value
Web 1.0
Mobile apps
take off
Traffic has
value
Targeted
traffic to
Pre-existing
user
What has value?
Trusted, secure &
consistent
communication in a
defined community
FB eclipses
Google as
Most
popular site
2010
New Business Model for gTLDs?
2012
1930 new
gTLD Apps
Google applies for 101
and Amazon for 76
new gTLDs
2013
?
FB IPO
Gambling.com
sells for $20M
46B apps
D/L from
Apple
Mobile /Social computing begins

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Distinguish the Why? From the What? Or How?
• The WHY? - These human needs are long-held and immutable:
• Identify
• Inform
• Communicate
• Entertain
• The WHAT? – The means to satisfy the needs are subject to change (technology,
culture/preference, economics, etc.).
• Domain Names
• Keywords
• Apps
• QR codes, etc.
• The HOW? - How the “means” are used to satisfy the need. Also subject to change
• Search engines, Websites
• Email
• Social Media
Domain Names are just one of the “means” of satisfying immutable needs

9. © 2012 Architelos and/or its affiliates. All rights reserved. 9

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