Unveiling the Strategy Behind Low-Cost Domain Names: An Interview with Famous Four Media

Famous Four Media (FFM) has rapidly gained prominence in the domain name industry, particularly with top-level domains (TLDs) like .science and .party, boasting hundreds of thousands of registrations. Their strategy? Offering marketing incentives that allow registrars to price these domains at incredibly low rates, sometimes even as low as $0-$1.

To understand the driving force behind this approach, we sat down with Andy Churley, Chief Marketing Officer at Famous Four Media. In this interview, Churley delves into the current landscape of new TLDs, explains FFM’s pricing strategy, and introduces their new “brand protection” tier designed to safeguard trademarks.

The Evolving Landscape of New TLDs

DNW: What are your thoughts on the current state of launched top-level domain names?

Andy Churley: We’re still in the early stages of this new namespace’s evolution. Various go-to-market strategies have been deployed, some proving successful while others appear destined to fail. The demise of the sunrise period, which traditional domain registries relied on for marketing funds, is evident. Moreover, the industry eagerly awaits the first major brands to actively utilize their .BRAND domains in their marketing campaigns.

Currently, the industry is somewhat in limbo. ICANN isn’t investing significantly in mass-market educational campaigns, registries struggle to afford marketing to end-users, and registrars are hesitant to launch awareness campaigns after witnessing others face challenges. It’s a complex situation requiring innovative approaches.

The Shift to Low-Cost Domains: A Strategic Decision

DNW: Initially, your TLDs were priced similarly to other new TLDs. However, you’ve since offered domains for free or at very low prices, leading to .science and .party entering the top ten. Why did you change your strategy?

Andy Churley: As Chief Marketing Officer, I constantly evaluate the cost of acquisition for various marketing mechanisms. We analyzed the traditional marketing model employed by .CLUB, which, while effective for the registry and the industry, proved unsustainable for a portfolio applicant like Famous Four Media. The costs associated with that type of campaign were prohibitive.

Therefore, we re-evaluated our approach and chose .SCIENCE as our test subject. We believed it was the ideal TLD to launch a radical outreach program. .SCIENCE is a globally recognized term with a broad community of enthusiasts who, we were confident, would support the registry and actively use .SCIENCE domains if price wasn’t a barrier. Since registries can’t sell directly to end-registrants, we leveraged the registrar channel, offering short-term discount pricing as a marketing incentive to encourage registrars to participate, pass on the savings to registrants, and stimulate registrations. Given the similarities between .PARTY and .SCIENCE, we adopted the same approach, and it’s performing as expected.

It’s important to remember that we offer participating registrars short-term marketing incentives in the form of registry credits. Famous Four Media doesn’t dictate the retail price of our products. Registrars are free to set their own prices. Some have passed on the entire incentive to their customers, others only a portion, and some have chosen to maintain their prices and retain the extra margin. All three approaches are valid, and registrars will choose what best suits their customer segments, marketing strategies, and revenue models.

For Famous Four Media, the new gTLD program is a long-term growth business. Applicants who sought quick riches have quickly realized that reality and some have even abandoned their efforts. Customer acquisition must be cost-effective. We’re launching ten more registries this year and will develop a tailored marketing strategy for each to fit its specific business model.

Combating Abuse: Maintaining a Safe Domain Space

DNW: With low prices, how do you prevent your domains from becoming havens for phishers and spammers?

Andy Churley: We utilize the same mechanisms as other registries. We strongly encourage brand owners to register during the Sunrise period to protect their brands. We promptly respond to UDRP and URS decisions, as well as other domain complaints. As an added precaution, we regularly visit domains within the registry to ensure responsible use. Despite having over 300,000 names in the .science registry, we haven’t observed any significantly higher rates of cybercrime compared to other registries.

Like any registry operator, Famous Four Media wants websites attached to every domain name because this promotes renewals and encourages further registrations. In the case of .SCIENCE, the global scientific community will determine the registry’s success. As it stands, we’re delighted with the growth of both .SCIENCE and .PARTY.

The AlpNames Connection: Separating Business Operations

DNW: Most domain names have been registered at AlpNames. How is this registrar connected to FFM?

Andy Churley: AlpNames is among the registrars that have chosen to pass on our marketing incentives to their prospects, likely to drive sales. While geographically located in the same area as Famous Four Media, their business operations are entirely separate. They are an independent entity.

Future Pricing Strategies: A Tailored Approach

DNW: Do you plan to offer future domains at low prices, or is this just a “test”?

Andy Churley: Our initial General Availability (GA) phase has included marketing programs that utilize significant rebates to incentivize registrars. Some, but not all, registrars have chosen to pass these rebates on to their customers as very low-cost domain names. However, Famous Four Media employs distinct marketing programs, strategies, and measurement criteria for each of its extensions. We will undoubtedly adopt the .SCIENCE model for some TLDs, as it has proven to be a resounding success according to our metrics. For other TLDs, we’ll utilize different marketing mechanisms to achieve the specific goals of each registry.

To provide additional protection against cybersquatting, particularly for extensions employing aggressive early adoption incentives, Famous Four Media has introduced a Brand Protection tier for the most frequently cybersquatted marks. This is designed to deter registration of those names by third parties.

We consistently encourage brand owners to register their domain names during the Sunrise period. However, for those who choose not to, or who own trademarks not registered in the TMCH (and therefore ineligible for Sunrise phase registration), the Brand Protection tier will help protect their marks against cybersquatting, mitigating the need for costly and uncertain URS or UDRP actions.

Famous Four Media’s wholesale price point for the Brand Protection tier is strategically designed to financially deter cybersquatters without burdening trademark owners. The pricing aligns with the cost of registering a mark in the TMCH and registering the domain name during the Sunrise period. Renewals will, of course, be at standard registration rates. We encourage Brand Owners to register their trademarks with the TMCH to benefit from early warnings and access to Sunrise phase registrations across all available domain extensions, not just those managed by Famous Four Media.

In conclusion, there’s no one-size-fits-all solution in this industry. If there were, bringing these new TLDs to market would be far less engaging! The key is adaptability and understanding the unique characteristics of each TLD to develop a successful strategy.