7 Key Risks of Internet Domain Management
An eBrand Services White Paper
Domain management is important. Effectively managing your domains you will maximise
your brand/s profile and sales whilst minimising costs. Domain Management (DM) is
undergoing constant change. There are enormous opportunities to be had by getting your
DM strategy right. Conversely opportunities will be missed if you get your DM strategy
wrong.
This article looks at seven key risks with DM for B2B and B2C markets, and through the use of
illustrative examples, demonstrate how some companies have got it right (and wrong) and
make suggestions on how to mitigate these risks.
But firstly let’s set a few things straight…
1. There is no ‘one size fits all’ when it comes to domain name strategy. What works in
your company may not work at another.
2. There is no ‘silver bullet’ when developing a domain name strategy. Domain name
strategy must accommodate how your customers expect to see your domains and not
necessarily how your company sees to itself.
3. Top level domains (TLDs) are constantly changing, so domain name strategy is not
something that you should ‘set and forget’
The seven risks outlined below are not listed in any order of priority. Each risk will have a
different priority based on the nuances of that company and industry. Let’s look at each of
the seven risks:
1. Moving in the same direction, together
A lack of clarity on the current and/or future direction of the domain strategy amongst
different teams involved is a common risk. It’s crucial that the roles and responsibilities each
team has in the development and maintenance of your domain and internet strategy are
understood by all. Key handover and interaction points between teams must be defined. Also
each team also needs to know when NOT to be involved. Finally revisiting roles and
responsibilities is important if there are changes to your company structure.
Seven Key Risks of Internet Domain Management
A leading energy company had Marketing, IT and Legal teams that didn’t communicate with
each other. IT was just interested to manage the existing domains. Marketing wanted to
expand the DM strategy and was considering buying more domains for better search engine
optimisation, but didn’t know which domain names were relevant and if they would we be
allowed to use them. And finally Legal wanted to help but wasn't specialised on domain law.
This energy company engaged their independent domain manager to get all parties involved
and create a unique, long-term domain name strategy. The independent domain manager
brought an objective viewpoint, industry best practice as well as fresh ideas from other
industries. When it came to their DM strategy they were all moving in the same direction,
together.
2. Adequate cover for all your brands or markets
A company may boast about the large number of domains they have registered and how it
provides excellent domain protection. The hero brand is registered in every domain you can
imagine. However sub brands or emerging brands might be registered in just one or two
domains. Brands which companies are banking on for their future success don’t have a
domain strategy that supports the expected growth. Alternatively, regions expected to drive
strong growth don’t have relevant brand TLDs registered.
As an example an international manufacturer of sports goods had over 200 domains
registered across over 55 different domains. The hero brand was registered with over 30
country code TLDs (ccTLDs). Domains were even registered in countries that the hero brand
had never been active. However 70% of their brands were registered with just one TLD. Also,
the brand that the company was banking on to drive the biggest growth in the next 5 years
was registered in only 6 ccTLDs.
To mitigate this, growth brands must be supported. A simple approach might be to copy the
hero brand domain registration strategy and register the growth brand/s in the same
domains the hero brand. After all if the domain strategy is good enough for the hero brand
why not also for the growth brand?
Also don’t forget your dormant brands which have been or will be removed from active
marketing. Consumers have long fond memories of your old products or brands that may
have been parked before the internet era began.
Seven Key Risks of Internet Domain Management
3. New gTLDs
Generic top level domains (gTLDs) have introduced the opportunity for a major shift in
domain registration and how people access domains. To date there has been a mix of
branded gTLDs (e.g. .bmw, .mini, .suzuki), non-branded gTLDs (e.g. .creditcard, .physio,
.fashion) and geographic locations (e.g. .berlin, .sydney).
The first gTLDs launched in October 2013, and to many in the industry new gTLDs are yet to
prove their value. Some believe that they will never create value. Esther Dyson, founding
chairperson of ICANN, wrote that the expansion "will create jobs [for lawyers, marketers and
others] but little extra value”1.
However ignoring gTLDs entirely may prove foolish in hindsight. Already some new gTLDs are
being sold for very high prices, and it’s is easy to suspect that having made a large investment
in purchasing these gTLDs, the owners of these gTLDs will seek to recoup their investment
through high registration fees.
To mitigate this risk look for a domain provider who actively monitors new gTLDs and can
help you to target gTLDs relevant to your business. They should help you through the sunrise
and land rush periods to give the best potential that your company will obtain the gTLDs you
need.
4. Too many domains
The average price of a domain ranges from GBP18 to GBP22 per domain p.a. Across a region
(say Europe with 28 different countries) and a suite of 5 or 10 brands these costs can quickly
add up. Yet many companies have TLDs registered in countries they have never and will never
operate in, or are no longer relevant. It’s a similar story with brands that may have had TLDs
registered but never launched or TLDs that supported one off sales promotions or contests.
As an example a pharmaceutical company registered 2 potential brand names for the same
drug across all EU domains. The company successfully launched the drug under the preferred
brand name. 4 years after launch, the second, now redundant brand name, was still
registered across over 30 different domains. The second brand had been totally forgotten!
Using a reputable, specialist domain management company can expedite an audit process.
They will have tools to list all domains for your brands which should include registrations
1
Dyson, Esther. "What's in a Domain Name?". Project Syndicate. Retrieved 17 December 2014
Seven Key Risks of Internet Domain Management
made by you, other branch offices across the globe, 3rd party distributors and unrelated third
parties (incl. cyber squatters).
5. Not enough domains
‘How many domains should I have?’ It’s a simple question but often difficult to answer. The
number of domains must be driven by your marketing and distribution strategy and what is
planned for the future.
A leading retailer went through a major rebranding of it retail operations following a merger
with a competitor active in other countries. Domains for the ‘old’ brand name had been, in
conjunction with their domain manager, carefully selected to provide a great domain
strategy.
With the rebrand the IT team, working alone, registered domains they thought were needed
– with disastrous consequences. Domains in key markets weren’t registered. Squatters
grabbed some of the vacant names, which necessitated recoveries costing over €3000 per
domain. Had these domains been registered initially, registration costs would only have been
one tenth the price of recovery. So owning too few domains can be an expensive and
avoidable misadventure.
6. Key man risk
Most registries require a key contact, which introduces a business (key man) risk if that key
contact leaves your company. Failure to respond within just 15 calendar days to a registrars
enquiry may constitute a material breach of contract and can be the basis for cancelling your
domain registrations.
Another key man risk is if the key contact becomes a disenchanted employee and
deliberately sabotages the renewal process of your domains.
In 2013 the Argentinian registry (NIC Argentina) decided that companies using Argentinian
domain names must verify they really existed. The Argentinian registry sent emails to the key
contact persons notifying them of this domain census. Failure to comply resulted in the
instant deletion of a domain.
Seven Key Risks of Internet Domain Management
One company’s key contact details listed with the registry were for an employee who no
longer worked there. So the census request was missed. As a result of non-compliance to the
census request this domain name was deleted by the Argentinian registry, despite the
company still being active in the Argentinian market.
Key man risk is best mitigated by outsourcing domain registration and renewal activity to a
competent domain management company. The domain management company should have
tracking tools to ensure domain renewal notifications are received and actioned
appropriately, ensuring your amazing domain strategy you have worked so hard to achieve is
maintained regardless of HR changes.
7. Invoicing – keeping domain costs under control
Just like any other part of the business it’s important to keep adequate control on your
domain costs. However with different renewal timeframes for each domain, invoices billed in
different currencies and/or invoices charged to different parts of your company it’s easy to
lose track of your total domain costs. Forecasting domain costs for the next year can be even
harder.
Accurately understanding the financials of your domain management strategy allows you to
-
Identify the ROI of each domain and completing cost/benefit analysis of your
domain/s.
Forecast domain costs for the next period
Allocate costs to different campaign activity
Regular domain audits help understand the domains you have registered, however it won’t
help you to understand the total financial picture of your domains. A competent domain
management company can simplify the financial side of domain management. They should
be able to provide:
1. A single invoice at whatever frequency you require for all your domains, sent to one
location
2. An invoice that itemises each domain you are being invoiced for
3. Flexibility to supply separate invoices for a sub set of domains (ie for short term sales
initiatives etc.)
4. Invoicing in a single currency to remove any currency risks
Seven Key Risks of Internet Domain Management
Conclusion
This article highlights common key risks with domain management across all industries.
There will be other domain management risks specific to your industry and company. Not
addressing the key risks of domain management will result in reduced sales, higher costs, or
both.
Many of the risks can be addressed internally through the judicious management and time,
outsourcing the responsibility of domain management to an independent 3rd party who
specialises in domain management can provide:
- Specialist domain industry expertise
- Cross industry experience and best practice
- Allowing you to focus on your business
- A better understanding of costs relating to all your domains
eBrand Services is a global leader in domain name management. eBrand Services offers a full
portfolio of services including:
-
Domain name registration
Brand creation and optimisation
Monitoring and recovery of domain names
eBrand Services has over 15 years’ experience in brand management, domain names and emarketing campaigns with hundreds of corporate clients including utilities, financial
institutions and market leading B2C and B2B companies. eBrand Services prides itself on the
value added services it provides to its clients. Their multilingual team of experienced domain
management experts offers local support in all major European countries.
eBrand Services can be contacted on
8 Northumberland Avenue
London WC2N 5BY
United Kingdom
Phone
+44 (0) 203 633 2931
eMail
pschoden@ebrandservices.com
URL
www.ebrandservices.com
Seven Key Risks of Internet Domain Management