Archive for the ‘Corporate TLDs’ Category

Corporate TLDs – Why keeping mum seems to be the order of the day

Thursday, June 17th, 2010

By Tony Kirsch

Global brand protection powerhouse MarkMonitor recently released survey results revealing the intentions
of their corporate clients with respects to new gTLDs (see survey here).

After reading the report, it’s fair to say that I’m not surprised by the results, but continue to be frustrated by them. Where are all of these forward thinking and revolutionary online marketers and brand managers?

Are they so unaware of the opportunity that has been placed before them or are they just being very savvy?

Whilst 22% of the 97 respondents stated their intention to apply – that’s 21 for those madly reaching for a calculator, a whopping 55% (53 respondents) were ‘unsure’ as to their intentions.

Given the likelihood that ICANN will shortly be providing some long awaited clarity around application dates for the new TLD program (looking more and more likely to open in Q1 early  2011) it is disappointing that such a large number of corporate organisations are still undecided as to the direction they intend to take.

I fully appreciate that with the limited clarity on how to effectively utilise it, public support for the .brand TLD concept has been lacking. However look closely and it screams out to be heard, this is an amazing, one of a kind, opportunity for brand owners to make a huge statement of leadership, innovation and a commitment to the digital space.

Sure, I can hear the trademark attorneys sitting up in their chairs, ready to fire their arguments that the corporations of the world are the ones most severely impacted by this new TLD program and that the large brands have been victims of fraudulent activity both online and offline for years.

I hear you and the ICANN community hears you… your case has been well made over the last few years within ICANN circles discussing the policies for the new gTLD program.

However, at least in my slightly biased view, this is the one time where organisations have the opportunity to ‘redefine’ themselves and rise above the noise cluttering their online messages and build a new home where consumers can begin to easily identify and trust you again.

I agree that brand holders shouldn’t have to go and register their names in every new TLD. However, what I’ve been suggesting to a number of trademark holders around the world is that there is a different way at looking at this program that can seriously benefit your organisation.

Surely some of the millions of dollars you spend each year in protecting and promoting your brand could be used to take it to the next level (and perhaps open yourself to strategies that might actually reduce your expenditure in years to come)?

One can only assume the rationale behind the lack of announcements and/ or the apparent indecision is the result of either one or a combination of the below reasons;

•    No benefit in announcing early –Have the early adopters such as Canon and Deloitte really gained much of an          advantage? Hard to say right now but expect to see a few more in the next few months.

•    Confidentiality constraints – For many, in particular brands with acronyms, announcing early may bring                    unwarranted attention at this stage of the game.

•    Lack of Awareness – Don’t worry, you’re not the only one. ICANN’s communication program for this hasn’t even        started yet so expect to see a lot more attention on this in the second half of this year.

•    Uncertain timeframes – Now this I really understand. Brand managers have no doubt been approached by                    people discussing this new TLD program only to be told that there is no end date and no idea when there will                        actually be one. Believe me it’s as frustrating for me as it is for you.

•    Implementation Concerns – How do I do this when I’ve just spent millions on my .com address or a new                     promotion? How do I transition? All common concerns we’re hearing which encourage a ‘wait and see’ scenario.

•   Questions of how to actually use it? – Do I engage with my customers and provide them with a                                         tonykirsch.brand   domain name or just use it internally? What value can I add to my customers on top of a clear               marketing message that   will really help our organisation?

•   Buy in – Getting approvals from all of the relevant stakeholders and sharing the idea internally could be simply too       hard. Who is championing the cause at your organisation? They probably deserve a raise.

•    Cost – Many have suggested the USD 185,000 application fee to ICANN is too expensive. In reality, by the time you       put together your application, your bank guarantees and your Registry Services it’s going to be much more than               this. So if you’re worrying about the USD 185,000 and can’t see the enormous branding benefits and the possibility         of reducing your expenditure on brand protection into the next decade, then this opportunity probably isn’t really for you anyway.

All these points are entirely valid and depending on the organisation, could shape the decision on whether to apply or not in early 2011.

However, organisations can no longer afford to be complacent regarding application timeframes. ICANN have specifically stated that they will ‘continue with the current implementation plans leading to the launch of the New gTLD Program’  (see announcement here) and have made significant inroads into the Final Applicant Guidebook which is currently slated for an October or November 2010 arrival.

Examination of the most likely path forward therefore indicates that the program is due to begin accepting applications sometime in Q1 or early Q2 next year and it’s important to note that there is a limited 45 day window so those that don’t submit their application and miss out may be waiting for quite some time for another opportunity and risk being disappointed.

For many organisations, these timelines represent a significant challenge. Whilst it all sounds easy, there is significant time required to educate and motivate key stakeholders to take this innovative step as well as find the right partners to help you with the necessary application and registry services.

MarkMonitor’s conclusion from their research is the same as mine – Given the significant amount of work required for a new TLD application and the obvious necessity to obtain buy in from internal stakeholders, the time to begin these discussions is right now.

I for one can’t wait to watch this unfold.

The future looks bright for new gTLDs!

Tuesday, March 23rd, 2010

By Tony Kirsch

The ICANN Board meeting undertaken recently in Nairobi was indeed eventful and there were many vital topics on the agenda, in particular for the new gTLD program that kept many interested parties on the edges of their seats as the meeting unfolded.

Listening in remotely from Australia proved to be a great success after security concerns had sadly dampened my enthusiasm for the 24 hour flight.

One of the more controversial decisions was in regard to the Expression of Interest (EOI), a program intended to allow potential new gTLD applicants to pre-register for their desired TLD and provide ICANN and the community with invaluable information regarding likely volumes of applications.

The genesis of the EOI took place at the ICANN meeting in Seoul and many in the industry strongly believed it would solve many of the unresolved issues relating to the new gTLD program. The EOI was however withdrawn by the Board at the meeting in Nairobi on the basis that many of the issues holding up the launch of the program were close to being resolved, rendering the EOI somewhat redundant.

Although many in the internet community were quite unhappy with this decision, it was encouraging to hear such rigorous discussion by Board members and ICANN staff suggesting that many of the outstanding issues were in fact close to being resolved.

Further supporting the idea that we were rapidly approaching a Final Application Guidebook, the Board also announced a list of items to be included in version 4 of the Draft Application Guidebook including;

•    Trademark Clearinghouse
•    Uniform Rapid Suspension System (URS)
•    IDN Variants
•    IDN 3 Character Requirement

thus making substantial progress towards resolving many concerns exhibited by the internet community over recent times.

So finally after years of waiting, real progress has been made and things are now starting to look good for new gTLD applicants who have waited for the program to go ahead for quite some time. A new version of the Draft Application Guidebook is due right before the 38th ICANN meeting in Brussels, in June, and according to ICANN staff and Board comments, it is likely to be very close to the final version.

So what does this mean for everyone out there who has their mind set on applying for a new gTLD?

There are a number of steps that each applicants needs to go through and be prepared for when  the application window opens. For organisations and governments, this is the time when you need to start considering what you have to do to get your TLD and to begin the rigorous preparation and planning that will ensure that your TLD is a success.

Furthermore, there is a heavy requirement on new TLD applicants to justify their ability to technically and financially operate a TLD, those who think they can make a last minute decision about proceeding should beware.

Public statements of intent to apply for their own TLD have been given from many cities around the world as many governments seek to provide a localised location for their residents online.

Additionally, I was very excited to see that the message has reached some large corporate entities with Canon announcing last week their intention to apply for .canon as the future of their corporate online branding.

To obtain their company name or trademark as a TLD is an unprecedented opportunity for corporations around the world and a unique branding exercise with large benefits attached. I think we can expect to see many others follow the innovative trend set by the Japanese electronics powerhouse in the near future.

So, despite a little angst at not having the Expression of Interest program approved by the Board last week, the update is that there is even better news for those of us supporting new gTLDs as we rapidly approach the application period later in the year.

And as always, we’re always here to help potential applicants through this maze. Just drop us an email here.

What does it really cost to run a new gTLD?

Wednesday, August 19th, 2009

By Tony Kirsch

After visiting a number of clients around the globe over recent months, it seems that there is some confusion about the true costs of applying for, and then running a gTLD.
This is not surprising given that a lot of the press regarding the program highlights the USD 185,000 price tag to get your new TLD. However, these notifications fail to accurately inform potential applicants regarding the ‘additional’ components. In reality, getting the name is a relatively small part of the process and ICANN have set a very high bar for the components of:

a)    Organisational capability to protect Registrants from namespaces that run out of funding and leave domain name holders with nothing, and;

b)    Technical competence to ensure that the Registry functions protect Registrants and maintain ICANN’s mission of ensuring the stability and security of the DNS.

AusRegistry International fully supports ICANN’s stance on these matters, as our experience with managing TLD Registries has taught us that a robust and reliable Domain Name Registry takes a lot of effort and money. Fortunately for new TLD applicants, our experience also shows that once it’s done correctly, it is possible to build loyalty and trust from end users which ultimately enables you to build up a truly strong TLD as a long term asset.

Applying for and running a TLD is not a simple matter. However there is the potential of a large reward for those who introduce a successful TLD and those who approach the introduction of new TLDs with dedication and a responsible approach will be rewarded.

Points you may wish to consider when preparing to apply for your new TLD.

1.    Applying for your TLD may cost you more than USD 185,000.

USD185,000 covers your application fee and doesn’t cover other potential costs such as handling objections, extended evaluation fees or auctions if there are multiple groups trying to secure the same name. It’s best to be prepared to fight and make allowances in your business plan for this from the outset.

2.    You will have ongoing administration costs.

Have you considered your other costs like Data Escrow and your monthly fees to ICANN? You will require a minimum investment of at least another USD 30,000 per year and potentially more depending on the success of your namespace.

3.    You may need assistance in putting together your application.

You’re investing a lot of money in this project so it’s important to have the appropriate policies and business models in place. Don’t ignore the importance of leveraging from the skills of those with substantial industry insight. A little help will pay off in the long run and helps to avoid many of the hidden traps.

4.    You will need a Registry.

Contrary to some reports, getting the name doesn’t just start making you money. You need a reliable Registry System capable of handling the requirements of your namespace and meeting ICANN’s technical requirements. Applicants should ask of the Registry System:

•    Is it established and proven?
•    Can it handle the demand?
•    Will it provide advanced functionality to help you manage your namespace without expensive overheads?
•    Will it provide you with the ability to grow your namespace as you wish?
•    Does the Registry provide you with flexible billing models?
•    Will it pass ICANNs assessment of technical compliance?

All of these are very important factors for new TLD applicants to understand and can’t be ignored. For example, a serious Registry provider should be able to stand behind their products and services with confidence and allow the TLD applicant to focus on other key areas of the TLD such as marketing.

AusRegistry International are so confident in our Registry System, we will pay the USD 50,000 Technical Evaluation Fee to ICANN during the application phase for our clients if our Registry does not meet ICANNs requirements.

Realistic expectations when going into this type of new, entrepreneurial business is an important aspect to being successful and can only really be achieved with an understanding of all components that you are likely to face. This comes from experience.

However, don’t be scared away. Having your own TLD will provide you with an asset for a long time if you’re smart and careful about how you go about planning for your TLD Registry System and how you leverage from knowledge and experience that may be available to you.