You don't understand?
Here is an explanation - and again - it focuses on the number one reason why participants in the next ICANN new gTLD program should pay attention to confidentiality.
What the text says
The link I am referring to, points to this line which says: "An additional $2.4million of cash due as a result of the private auctions for .llc and .inc in which the Company withdrew its applications".
In more simple words, it means that this participants (called a "multiple registry"), earned $2.4 million by withdrawing two of its applications in the ICANN new gTLD program: this in return of participating in an auction for a third party (the winner of the auction) to become sole operator of these two extensions.
As a reminder, it cost $185,000.00 to submit one application (in fact it cost more than this but let's focus on basic figures) and in that case, by withdrawing it because of an auction, it generated $1.2 million.
Let's assume that a participant to a new gTLD project gets info prior to the next round to begin: developing competing projects for the sole purpose to participate in auctions becomes highly profitable. It is risky but much faster to reach out to profitability and much more profitable than selling domain names.
Post a Comment
Interested in learning if it makes sense to create your own new domain name extension? Ask Jovenet Consulting for your SWOT analysis.