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Here's the The Lowdown from DN Journal,
updated daily
to fill you in on the latest buzz going around the domain name industry. 

The Lowdown is compiled by DN Journal Editor & Publisher Ron Jackson.

.KIWI Borrows Page From .TV Game Plan - Fixed Prices Announced for "Premium" Names

Now that the new gTLDs have started rolling out, we are seeing a lot of different pricing strategies. For their so-called "premium" domains most new gTLDs registries favor an auction model that will award domains expected to draw the most interest to the highest bidders

However, the New Zealand oriented .KIWI registry has decided to set fixed prices on the better names purchased from their website (though some of their preferred partners will be allowed to auction off some names). 

 

You can now see the prices (ranging from $500 to thousands of dollars) that .KIWI has arrived for their premium inventory.  Annual renewals will be around $40. Most of you will recall that .TV started out charging high fixed prices on premium names while also pricing renewals at the same high price, so there were some names that would cost a registrant  $10,000 a year (with few takers at those levels as you would imagine). To boost demand .TV later lowered their initial prices and made renewal prices the same for all .TV domains.

Just looking at the first page of premium prices on the .KIWI site, you will see prices all over the board. For example, 123.kiwi is listed at $2,939 but 1500.kiwi costs $7,411. ABC.kiwi is $1,900 but ABA.kiwi is $8,422. While it may appear that a dartboard was used to set pricing, a .KIWI spokesperson said, "All premium names have been valued in collaboration with third parties that specialize in valuing domain names around the globe. The value of a .kiwi premium name is determined using historical sales data, search engine popularity and traffic." A statement on the .KIWI website adds, "the value of these domains stems from their simplicity, memorability and popularity as a search term."

Kiwi image from Bigstock

If you do find a .kiwi domain you are interested in you apparently can't buy it just yet. The site says, "Each .kiwi Premium Name listed as available can soon be purchased on our website, or through one of our preferred partners in accordance with their framework (i.e. certain providers may choose to auction popular .kiwi domain names). Each domain will be clearly labeled as available for sale immediately, or through a .kiwi preferred partner. If you want to ensure you are first in line for your favorite .kiwi Premium Names, register your interest and we will get in touch once you are able to purchase."

For an untested new gTLD I'm sure many of the 

premium prices shown will be greeted by skepticism among veteran domain investors. However, most of the the new gTLD registries have indicated that investors are not their target market. Whether or not the mainstream business buyers they have their sites set on will accept premium priced new gTLD domains is a question will be start getting answers to in the months ahead.

(Posted December 2, 2013) 


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