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Old 7th August 2011, 02:15 AM
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Dot xxx

A guy named Frank Schilling bought a good bunch of the best .xxx for 7 figures apparently

Go read the post on Elliot's blog for all the details

To me, it looks a lot like an "investment" type deal between FS and the registry | like Mike Mann likely had with dot co : i "buy" some of the best names, the registry uses this to market the TLD to small time domainers + perhaps the promise of one or two early flips by FS the same way MM did, to stimulate the aftermarket.
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Old 7th August 2011, 05:09 AM
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Re: Dot xxx

Followed by a massive drop end of next year! But at $300? a pop buyers will be definitely limited.

I'm guessing .co will have drops in excess of 400,000 if the 1 mill they say were regged is correct. Any thoughts?
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Old 8th August 2011, 03:24 PM
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Re: Dot xxx

Quote:
Originally Posted by Wot View Post
Followed by a massive drop end of next year! But at $300? a pop buyers will be definitely limited.

I'm guessing .co will have drops in excess of 400,000 if the 1 mill they say were regged is correct. Any thoughts?
"Usual" renewal rate is between 70-73% I believe, which means 270,000 dot cos are almost surely going to drop at the minimum. Given the high renewal fee compared to other TLDs, renewal rate could certainly be under the 70 bar.
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Old 9th August 2011, 03:06 AM
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Re: Dot xxx

Just killing time here

Quote:
Originally Posted by Stuart Lawley
For the record…

The program opened in December 2010 on a first come first served basis.

Frank agreed his deal with us, and agreed to develop ALL of the names out, in February 2011 at Domainfest a full month before we were finally signed off by ICANN. His deal alone, included several six figure names. I know for a fact that some of the names he acquired have received offers several fold higher than he paid, because we took the offers to him from other members of our community. He declined all offers and explained he was with this extension for the long term. Founders deals have a no flipping rule in them anyway(without our permission). The program was designed to promote significant, high quality sites on the premium names.

Post ICANN approval clearly the values went up significantly and we have subsequently entered into further contracts (all requiring site development) for even more names with an individual price tag of $100,000 or over.

I would estimate that less than 15 % of the top 200 names have been taken in founders.

Still some excellent names to go for.
thedomains.com/2011/08/08/icm-announces-close-of-founders-program-for-xxx-several-domains-sold-well-into-the-six-figures/

Quote:
Originally Posted by domainincite
ICM Registry made just shy of $4 million from its Founders Program, which allocated premium .xxx domain names to porn webmasters.

As Elliot’s Blog reported, uber-domainer Frank Schilling’s Name Administration has picked up 33 .xxx domains for a seven-figure sum.

Schilling got his hands on the likes of amateur.xxx, asian.xxx, hardcore.xxx, hot.xxx, porno.xxx and many other “super premiums” domains.

He said in a statement provided by ICM:

Quote:
Originally Posted by ICM
I believe that .XXX, unlike many other new TLDs, offers SLD registrants the opportunity for long term type-in traffic. Many people navigate in a way that suggests they believe .XXX existed all along. Few strings other than .XXX share this attribute.
ICM president Stuart Lawley said that .xxx was a popular type-in TLD long before it even existed on the internet. Apparently the non-existent .web is also pretty good for traffic
domainincite.com/icm-makes-4m-from-xxx-founders


So basically FS bought the names to hold and develop based on "opportunity for long term type-in traffic".

Say FS paid 1 million for the 33 domains, that's $30 303 per.
He perhaps paid more than that but I think it's closer to 1M than 2M given the timing etc.

so 30 K per domain (and Lawley seems to say that there was 6 digits domain deals too), and (i)this is adult stuff, aka a business that has been suffering (globally speaking as I am sure some promoters did and still do very well) for the past few years because of tubesites and free content, a business where conversion is usually very low thus the need for boatloads of traffic.(ii) several parties may or already said they would block .xxx (iii) inevitably traffic will bleed to .com (iv) no one knows how G will rank .xxx (my guess is that Google will filter them out unless the SafeSearch option is deactivated)

Some other things certainly need to be factored in but to me, the bottom line very much looks like this: 30K per premium domain based on "opportunity for long term type-in traffic".
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Old 9th August 2011, 05:51 AM
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Re: Dot xxx

Clearly he's taken a punt here. He's got the best names I'm sure, and just hoping .xxx is a massive success and creates lots of type-ins.

Development of .xxx names is just whacking up some free content. I'm sure there are millions of templates out there.

If this was his last million bucks in the world, I'd call him a fool. But clearly he has enough cash for many such punts, so seems like a reasonable thing to do.

Personally I doubt it will pay off, but he didn't ask me!
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