XYZ : June 2016 growth the result of “penny” promo, at a 7 figure loss

Directnic

In a recent post, XYZ Registry CEO and founder, Daniel Negari, gloated over the company’s growth in 2016.

Negari stated that .XYZ registrations outsold those of .COM by “over 1 million in June.”

That number might be true: more than 3 million .XYZ domains were registered in June, 2016, when an ongoing “penny” promotion allowed anyone to register .XYZ domains for $0.01.

According to stats from ntldstats, .XYZ had 2,920,917 domains on May 30th, the eve of the massively discounted promotion. On June 2nd, there were 6,091,042 .XYZ domains – a delta of 3,170,125.

xyz-registrations-june-2016

The promotion continued through the month of June from various registrars, at lesser discounts, ranging from a couple of dimes to a dollar, increasing the total number of .XYZ domains to almost 6.5 million by the end of June 2016.

Effectively, .XYZ more than doubled its registration numbers at a loss, through the penny promo. Negari stated that the registry incurred a loss of “7 figures in ICANN fees.”

Domain analyst, John McCormac, operates Hosterstats. In a recent comment to DomainGang, John stated:

“Renewal rates on freebies tends to be in the region of 5%. Sometimes it can be slightly higher on Western registrars but most of these freebies and discounted registrations will not renew. I’ve already run the historical data and am testing a renewal prediction model on some gTLDs.”

If the 5% rate holds for the $0.01 .XYZ registrations, the Registry is looking to retain 158,506 domains and lose more than 3 million domains at anniversary time, June 2017.

Renewal fees for those retained domains just might equalize the 7 figure loss in ICANN fees, thus matching the June 2016 promotion costs.

Brilliant or dumb?

 


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Comments

6 Responses to “XYZ : June 2016 growth the result of “penny” promo, at a 7 figure loss”
  1. “Brilliant or dumb?”
    Disaster!!!

  2. YamadaMedia says:

    Yup, agree with Konstantinos, I don’t think the these penny promotions are helping new domain extensions much.

  3. Vincent says:

    Companies can lose in the beginning, part of marketing, then profit im the end.

  4. Vincent says:

    A company can lose in the befining, part of marketing, then profit in the end.

  5. Dnvre says:

    My Butler says …..Dumb

  6. Matt says:

    Total disaster. Even the employees see the writing on the wall, which is why the majority of them have quit over the past year.

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