Domain Name Basics
Aftermarket and Premiums
Tobias Sattler
tobiassattler.com
2
Domain Aftermarket
Your desired domain may be long gone by the time
you’re looking for it. However, it’s possible to buy...
3
Aftermarket Business
It has grown substantially over the last couple of
years, due to the global market growth and expan...
4
Transaction Types – A
Domain Sales
The simplest domain transaction is the sale. Here the domain is usually listed
for sa...
5
Transaction Types – B
Domain Backorders
For Backorders some will let you order a domain that isn’t for sale yet. When
th...
6
Aftermarket Flow Chart
Buyer Seller
is contacting
This simplified flow chart explains a typical aftermarket transaction....
7
Aftermarket through Registrars
Buyer Seller
Aftermarket Provider are also working together with domain name registrars a...
8
Premium Domains – A
Usually the domain is often the name of the business,
service or product. The better a name is, the ...
9
Premium Domains – B
 Premium Domain Names have a higher
registration and in many cases a higher renewal
price as well.
...
10
Premium Domain Flow Chart
Customer Registry
This simplified flow chart explains a domain name registration for a premiu...
11
Premiums through Aftermarket
Registrar Registry
This simplified flow chart explains a premium domain name sell through ...
12
Challenges with Premiums – A
 Premiums require a lot of communication with
registrants and potential customers because...
13
Challenges with Premiums – B
 Registries can have specific rules around their
premiums such as, content or usage requi...
14
Summary
Aftermarket Premiums
Seller Current Registrant Registry
Purchase Platform  Direct Negotiation
 Auction
 Back...
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Domain Name Basics - Aftermarket and Premium Domains

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Aftermarket and Premium Domains a short introduction for newcomers. Meant to be an overview and training material for newcomers. This presentation is not intended to be exhaustive.

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Domain Name Basics - Aftermarket and Premium Domains

  1. 1. Domain Name Basics Aftermarket and Premiums Tobias Sattler tobiassattler.com
  2. 2. 2 Domain Aftermarket Your desired domain may be long gone by the time you’re looking for it. However, it’s possible to buy a registered name on the aftermarket. The secondary market allows interested parties acquiring a domain that is already registered. The potential buyer bids or negotiates a price to effect the transfer of registration of that name either  directly with the current registrant of the domain or  via an aftermarket provider such as Sedo or Afternic.
  3. 3. 3 Aftermarket Business It has grown substantially over the last couple of years, due to the global market growth and expansion. There are many who invest in domain names. They register domains in hopes that someday someone will want to buy it from them. Some of these registrants are acting independently, and others are companies whose business is entirely domain investing.
  4. 4. 4 Transaction Types – A Domain Sales The simplest domain transaction is the sale. Here the domain is usually listed for sale and people either accept the price or make a counteroffer. Offers can be made directly, or using a domain broker for the negotiation. Domain Auctions Equally common is the domain auction. In domain auctions, domain names are put up for sale to the highest bidder – just as on an eBay auction. Auctions can sometimes have reserves – a minimum sale price set by the domain owner that must be met for the auction to result in a sale.
  5. 5. 5 Transaction Types – B Domain Backorders For Backorders some will let you order a domain that isn’t for sale yet. When the domain’s current registration term comes to its end, the registrar will then try to register the domain for you as soon as possible. This method is more economical but yet doesn‘t guarantee the successful transfer of the domain.
  6. 6. 6 Aftermarket Flow Chart Buyer Seller is contacting This simplified flow chart explains a typical aftermarket transaction. calls a price negotiates accepts the offer pays the agreed prices provides auth code for transfer
  7. 7. 7 Aftermarket through Registrars Buyer Seller Aftermarket Provider are also working together with domain name registrars and this simplified flow charts how they are engaging with each other. Registrar After- market Provider looks up a domain orders domain orders domain confirms sell checks availability shows availability and prices sends confirmation confirms availability and sends price sends auth sends auth adds domains Registry initiates transfer
  8. 8. 8 Premium Domains – A Usually the domain is often the name of the business, service or product. The better a name is, the greater the odds that it will be recognized and memorized.  Premium domains are typically one to five characters in length, common terms or key words and have a built-in call-to-action.  These names are in demand because their registrants understand the power of strong branding and the inherent marketing value in a short, personal, memorable domain.
  9. 9. 9 Premium Domains – B  Premium Domain Names have a higher registration and in many cases a higher renewal price as well.  Premiums became more popular at domain name registries with the new gTLD program and the possibility to sell them directly through domain name registrars via Extensible Provisioning Protocol (EPP).  Some registries are also selling / auctioning their premium names through Aftermarket providers.
  10. 10. 10 Premium Domain Flow Chart Customer Registry This simplified flow chart explains a domain name registration for a premium domain. Registrar looks up a domain checks availability shows availability and prices confirms availability and provides price orders domain and confirms price sends confirmationsends confirmation orders domain and confirms price
  11. 11. 11 Premiums through Aftermarket Registrar Registry This simplified flow chart explains a premium domain name sell through Aftermarket. Customer After- market Provider looks up a domain orders domain sends token calls price sends token sends token confirms sell adds domains initiates transfer
  12. 12. 12 Challenges with Premiums – A  Premiums require a lot of communication with registrants and potential customers because  up until the new gTLDs launched premiums weren’t quite common.  Premium-domain renewal fees can also be priced at a premium level.  Identifying a premium through EPP can be hard, if the implemented EPP extension is either old or not supporting a unique identifier. Without an up-to- date list as a backup the process could be broken.
  13. 13. 13 Challenges with Premiums – B  Registries can have specific rules around their premiums such as, content or usage requirements.  Transferring premium names can be an issue, if identifying a premium is either not possible or broken by design.  Gaining registrar needs to support premium billing.  Price and tier changes are also quite time- consuming, because of communication to customers, testing and probably changing price points, etc.
  14. 14. 14 Summary Aftermarket Premiums Seller Current Registrant Registry Purchase Platform  Direct Negotiation  Auction  Backorder-Tools  Registrar  Auction 1st year price Registration Price at Registrar plus agreed purchase price with current owner. Premium Registration Fee Renewal Price at registrar Standard Price at Registrar or Premium Renewal Fee
  15. 15. Thank you!

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