Archive for the ‘Registrar’ Category

What Registrars should consider in a vendor partnership

Friday, July 3rd, 2015

Brendon MitchellBy Brendon Mitchell

More and more, business and web users are on the lookout for complementary products and services to support their online assets, and in most cases it makes sense to start their search at the same organisation from which they bought their domain name.

In the days of increased competition and a plethora of technical solutions, Registrars find themselves operating in a market where white-labelled products and services represent fast an efficient opportunities to bring new products and services to market.

This is an effective way to increase revenues without the need for in-house product development, outsourced resourcing or operational support.

The environment Registrars now operate in is moving swiftly towards a traditional wholesaler, retailer model. You have the shelf-space, the audience and the brand and you need quality products and strong partnerships to drive your business further with maximum return and minimal risk.

However, your choice in vendor could be the difference between success and failure.

Here are four key tips for building a strong vendor relationship based on our experience as a provider of services to the Registrar channel.

1. A good and relevant product

The simplest and perhaps most important factor is to select products that are interesting and relevant to your customers. Look for a vendor that fits with your existing customer requirements and would be considered a valuable and complementary product or service.

Think about ease of take up when considering the products you have access to. For example, what’s the easiest way to increase your average ticket price by a few dollars for every domain name sold?

Regardless of whether you decide to white-label or resell the service, it’s important you partner with a reputable provider that has the credibility and a track-record of success with other Registrars.

For instance, niche vendors with specific expertise in a particular area are obviously more credible in that field than those with a general service. In this scenario, make sure you research and understand the history of this niche and seek out any relevant client experiences that can give you further insight.

2. Commercial terms that make sense

Pricing and margins will remain an important factor of any vendor relationship. You need to ensure that your chosen vendor is able to sell the product to you at a price that allows you to apply the appropriate margin ;to cover not only your the cost of delivery, but also your risk in delivering that product to your customer base.

It’s a simple fact that the initial costs for integration, development and launch may not be recouped for a period of time. Ask your vendor whether they are willing to adjust their pricing to reflect this fact, or if they would consider rethinking their pricing strategy throughout launch so that you can both benefit from the product’s success in the long term.

A vendor that demonstrates an interest in supporting you in the short term shows that they are in it for the long haul and while we’re all in it to make a dollar, a little flexibility goes a long way when you’re introducing a new product or service.

3. Significant experience in go-to-market strategy

Does your chosen new vendor have significant experience in launching a product to market and ensuring successful implementation? Consider vendors like suppliers: you’re providing them with ‘shelf space’ and you need to be able to incentivise and be incentivised to sell their product through to your customers.

Make sure you have a deep understanding of how your vendor is going to support you in selling their product. Do they have a strategy for and experience in co-operative marketing, sales rebates, sales team training, collateral and product support?

If the answer is no, then you’re only appointing a service provider. Look elsewhere for the support you will need to ensure joint success.

4. Flexibility and product development

In business, compromise is essential to ensure both parties benefit from the arrangement. Every business is different and their customers are different too.

Introducing a product that is not tailored to the requirements of your customer base could potentially result in failure and loss of customer loyalty.

Ask your chosen vendor if they are willing to build a product that is right for your customers and your position in market, and see how they respond to this request. If they’re willing to alter their standard offering or work with you to construct the right product configuration, that’s one less thing you need to do at the front end.

Choosing your vendors

When choosing your vendors, ask the hard questions. Test their ability to be flexible and their desire to find solutions that suit both parties and ultimately, benefit the customer.

Ensure that you have all of the information you need before joining forces with any new party, to put your business in the best position for success.

DiscoveryDNS – Wholesale DNS Services for Registrars

ARI Registry Services has developed a premium managed DNS service designed to address the challenges and risks presented by today’s dynamic online environment.

Sold exclusively through the Registrar channel, the DiscoveryDNS service can be specifically tailored to the demands of a Registrars’ technical, operational or commercial environment. Our objective is to provide an enterprise-ready DNS service to Registrars that has the potential to generate revenue and reduce operational risk from the provision of DNS services.

If you’re interested in having a chat about how our unique approach to DNS service provision could benefit you, drop me a line.

By Brendon Mitchell
Account Manager, ARI Registry Services

How to maximise registrations through effective Registrar relationships

Tuesday, June 9th, 2015

RyanBakerBy Ryan Baker

There are some surefire ways to get channel engagement and drive registrations, but doing what everyone else is doing is not going to cut it in the world of new TLDs.

Successful Registrar engagement requires an investment of time far in advance of what some Registry Operators appear to be expecting, both in terms of ongoing relationship management as well as continually providing tools which make it easier for Registrars to sell your extension over other TLDs.

There are a number of methods that we use to help drive registrations including:

– PR and media activities,
– pre- and post-launch ambassador programs, and
– Registrar co-marketing programs.

In addition, providing collateral or examples of real-world TLD usage to Registrars can simplify their task of reaching out to their client base and converting them to registrations. Examples may include providing case studies of fully developed digital brands based on key domains within your TLD or highlighting relevant media which discusses the benefits of the TLD program generally and your TLD specifically.

Today I would like to expand on ambassador programs which are one area that is typically underutilised by the majority of TLD operators. In addition, I will outline the amount of effort required to deeply engage Registrars which is often misunderstood by those just entering the TLD industry.

Getting the word out

While the sleeping giant of .brand TLDs will eventually catapault new gTLDs to the forefront of global awareness, in the first instance the best way to bring the power of a brand to the attention of your potential registrants is through an effective TLD ambassador program.

At ARI, our strategy has been to engage with high-profile ambassadors prior to and after launch of our clients’ TLDs, providing a boost to marketing activities and a way to kick-start registrations by showcasing some big names already on board.

One of the strongest forms of marketing is third party endorsement and when it comes to promoting TLDs, the easiest way to achieve this is through an ambassador program. For example, when .sydney launched into General Availability, iconic Sydney landmarks such as the Sydney Harbour Bridge (www.bridgeclimb.sydney) and the famous Luna Park amusement park (www.lunapark.sydney) were already part of the .sydney community. The benefit of an effective ambassador program is that prominent businesses are immediately seen to be adopting your extension and demonstrating use. But there is another significant benefit to the Registrar channel if used correctly. A successful ambassador program provides an invaluable resource to your Registrars – making their task of promoting your TLD that much easier and keeping you top-of-mind above your competitors. A Registrar with effective products is much more likely to be a Registrar incentivised to sell your domains.

Keeping Registrars engaged

The balance of power has shifted somewhat with the introduction of so many new gTLDs. Registrars and resellers now have more products to put on their shelves and getting your product placed in the front window can prove difficult.

While it is important to have the broadest range of Registrars accredited to sell your product so no sales are lost, with so much competition for a Registrar’s eye it is often important to prioritise and find the Registrars who are most willing to work with your extension. Identifying Registrars whose existing customer base has a synergy with your target market is an easy choice, as is looking for Registrars who are receptive to your ongoing marketing efforts and focusing on making their job of selling as easy as possible.

To be clear, it’s important to treat all Registrars equally in terms of access to information, but you certainly don’t have to focus your efforts equally in terms of ongoing relationship management.

Cultivating strong working relationships with those Registrars who show they are willing to promote your TLDs and from whom you get the best results will ensure you get best bang for marketing buck.

Managing a Registrar channel is also an exceptionally time consuming process and spending five minutes on the phone daily with 35 Registrars versus deeply engaging with several Registrars who are helping you gain registrations is an easy choice. The reality is that there isn’t enough time in the day to develop the tools you will require and to engage all Registrars in the use of those tools, as well as engaging with your most successful Registrants. Prioritising your efforts is key.

Avoid the balancing act

While the process seems simple – supplying Registrars with the tools they need to sell, then building on success stories to provide additional sales tools and incentive for Registrars, and awareness for the market – the reality is that it’s a complex one.

It takes an innovative marketing plan and a real and continued effort to maintain and build upon Registrar relationships, as well as finding and promoting early adopters.

For many Registry Operators, especially those without a large portfolio of TLDs to manage, balancing these two functions in addition to all the other aspects of running a TLD can be overwhelming. Trying to divide resources and manage both alone could mean not realising the full potential of either strategy.

In these instances, Registry Operators may wish to consider splitting their efforts with a trusted partner: a partner who can help them build these Registrar relationships and allow them to really focus on finding and promoting innovative usage within their TLD.

At ARI, we have years of experience managing the day to day activities of building and maintaining Registrar relationships. There is a lot that goes into this process – whether it’s picking up the phone to make sure you remain top-of-mind, to giving your channel regular updates on your marketing and public relations efforts so they have all the tools they need to promote your TLD.

Many Registrars have trouble determining ‘which horse to back’ in a race whose entrants are multiplying by the day. Building relationships with Registrars, providing dedicated attention when one is showing particular interest or enthusiasm and supplying them with resources to make their job easier all take a necessary time and effort commitment, but it’s not one that every Registry Operator has the capacity to handle in-house.

When it comes to making the most of your relationship with resellers and registrars, an experienced partner means you have one less thing to worry about. Change is coming, but it can be a tricky road to navigate alone.

The favoured new TLD registrar payment model

Wednesday, February 6th, 2013

By Chris Wright

This week, Thomas Barrett – the President of US based registrar EnCirca – published a timely article about how the registrar cash flow model could collapse with the imminent release of hundreds of new Top-Level Domains (TLD).

I would like to thank Thomas for raising this important issue and for encouraging all new TLD applicants to discuss this topic with their back-end registry provider.

Thomas is correct; the process new TLD registries choose to interact with registrars will have a major impact on the success of their businesses.

Building upon what Thomas has written, I would like to take this opportunity to provide insights from a back-end registry operator’s view and offer an explanation for why I think the post bill pay model is favoured amongst registrars and should be supported by registries.

While Thomas briefly touched on this point, I would like to expand upon it and clarify a few issues.

The post bill pay model

ARI Registry Services has spent considerable time developing effective payment processes between registries and registrars. Following considerable consultation, the post bill pay model was constructed in conjunction with some of the largest registrars around the world.

We support the post bill pay model because it is actually significantly simpler and most registrars like it. In summary, this model essentially means registrars receive an invoice from the registry operator for all billable transactions following the end of a billing period. There are no accounts and no need for funds to be transferred outside of these invoices, which significantly helps to reduce the financial risk and strain on registrars.

It’s worth noting that it can be important to make a distinction between transactions that can be reversed and transaction’s that cannot. To make it simple for everyone, ARI Registry Services does not bill registry operators for transactions that are still reversible. We will wait until these transactions become non-reversible before we issue any invoices to registry operators. We offer similar functionality to our registry operators with respect to registrar billing so that they also have the choice to do this.

Benefits of the post bill pay model

As Thomas outlined in his article, there are a number of questions new TLD applicants should be asking their back-end registry provider. I completely agree with Thomas and offer the following responses to provide clarity on the benefits of the post bill pay model:

1) Is there an “accreditation” fee charged by the Registry?

As a back-end registry provider, we don’t charge any accreditation fee.

In fact, we take this one step further. All established registrars that can demonstrate experience in integrating with registries of a similar structure to us do not need to perform technical accreditation processes with us. Furthermore, we strongly advise our registry clients against charging accreditation fees as this is an unnecessary barrier to entry for registrars and ultimately impacts the commercial success of the TLD.

2) How much does the Registry require as an initial deposit and for replenishments?

Deposits, account maintenance and funds for replenishments are abolished under the post pay billing model. We don’t see any need for these.

The benefit of the post pay billing model is that there is no need to have account balances in the registry and we can simply track the transactions and invoice the registrars.

3) How does the Registry communicate the existing balance to Registrars? 

When you move to the post pay model, all you need to do is provide a web interface that allows registry operators and registrars alike access to the billable transactions that have occurred in the current invoice cycle. Sending a daily summary of transaction totals is the preferred way to proactively inform registrars of what they have spent.

4) Is there an auto-renewal policy for non-renewed domains?

Thomas seems to suggest that registrars don’t like auto-renewal because they basically provide credits to registrants or credits to the TLD.

This is easily addressed by delaying raising a transaction for this renewal until the end of the auto-renew grace period. Alternatively we can use the post pay model and the principle of not charging for non-reversible transactions. These solutions effectively eliminate this issue so you can still support an auto-renew service without the registrar having to carry the financial risk.

5) What are the bank fees to fund your registry account?

This is eliminated under the post pay bill model because there are no bank accounts and deposits to be tracked.

6) What payment options does the Registry accept for funds?

In our post bill pay model (as a back-end registry operator), we don’t enforce any mandatory payment options. It’s relatively straightforward; we send the invoicing data to the registry operator, who in turn will load the information into their accounting systems and generate an invoice for registrars. Registry operators are free to accept payment via any of the standard commercial invoicing payment options, or indeed any other method they desire. 

7) Does the Registry have its own account for each Registrar or does the back-end provider provide a single account for each registrar for all of the TLDs the back-end provider manages?

This issue becomes a lot less of a problem under the post bill pay model because we do not require money to be deposited, and thus tied up.

Each registrar will get a separate invoice from each commercial entity (registry operator) they deal with (TLD or collection of TLDs).

8) Does the Registry provider emergency credit if funds run low?

Again, because there are no funds associated with the post bill pay model, this issue is eliminated.

Risk for registry operators

As can be seen in our responses above, the post bill pay model addresses all of the questions Thomas has raised. However, while reducing the financial burden to registrars, it does potentially expose the registry operator to more risk.

We argue that new TLD registry operators should be prepared to accept this risk given that it will make their TLD more appealing to registrars. Ultimately, if you don’t have any registrars, you won’t be able to sell your domain names.

Further, these risks are manageable and can be addressed. For example, you can conduct credit checks on registrars, ask potentially problematic or risky registrars to put money into escrow or offer a bond, track the amount of debt a registrar is accumulating, or ultimately completely cut off the registrar from the registry if bills are not paid.

There are a number of strategies available to reduce this risk to registry operators.

Promotions

A further benefit of the post bill pay model is that it offers the most flexible platform for registries and registrars to implement promotional offers, discounts, credits for marketing and other commercial pricing strategies.

Essentially, each registry operator can apply their own discounting or promotional strategy as credits towards invoices, without requiring back-end registry operators to manage these. This means registry operators do not have to rely on their registry services provider to custom build promotions into their registry system, or pay expensive development costs.

Impact on new TLD applicants

I strongly recommend all new TLD applicants to consider the post bill pay model for their registrar payment process.

As described above, this model reduces the cash flow burden for registrars, makes your TLD more appealing to them and allows each registry operator to negotiate their own terms with each registrar.

Remember, registrars will be a crucial element in the success of many new TLDs. The barriers to entry will be a key  parameter reviewed by registrars when making decisions about which TLDs to integrate with first and a post bill payment model will go a long way to reducing these barriers.

If your back-end registry provider does not offer a post bill payment model, it may not be too late to switch.

By Chris Wright
Chief Technology Officer
ARI Registry Services