Registrar Connections - October 2008 - Registrar Connections from VeriSign, Inc.

Registrar Connections


October 2008

In this issue

Recap of European Registrar Day

Fall in Amsterdam was the perfect time of year to bring VeriSign executives together with registrar attendees from all over Europe to share and absorb new ideas surrounding the domain name industry.  This year’s European Registrar Day was held in Amsterdam on October 7.  The Park Plaza Victoria Amsterdam hotel, located in downtown Amsterdam, provided the perfect venue for discussions around the latest product and channel opportunities available to registrars, specifically in the European region.   Local VeriSign team members in attendance included representatives from account management and customer service.  They were able to provide valuable insights into customer profiles, trends and future direction associated with the European market.

In addition, the agenda included two speakers from VeriSign’s European region who spoke on hot topics including internet security, identity and authentication services for governments, consumers, and businesses. 

The VeriSign team used this as an opportunity to bring the most up to date content surrounding the domain name industry to European registrars, gather their feedback on current and upcoming products and services and generally create an atmosphere where concerns and ideas could be freely shared.  All registrars that attended indicated that they had a better understanding of VeriSign’s products and services and had gained ideas that they could use to enhance their own business 

A visit to Amsterdam, known as the “Venice of the North”, would not have been complete without a dinner cruise down the canal.  The evening boat ride, reception and dinner were fun and scenic but also provided an excellent opportunity for one-on-one discussions.  

Back to top

Using New Customer Engagement to Improve Renewal Rates 
Internet Profile Service for Registrars

Do you target new customers when planning your renewal programs? Many registrars would likely answer “no.” After all, the customer has just registered the domain name, and the renewal won’t be due for a year or possibly longer.

If you don’t typically consider new customers in your planning, you may be missing out on an excellent opportunity to improve renewal rates. One customer segment in particular – those who have recently registered domain names, but haven’t put up a Web site or set up email services yet – can be an important target audience for effective renewal programs, and should not be overlooked.

There are two factors behind this. The first is that whether a domain name resolves is a key factor in higher renewal rates. Not surprisingly, customers who actively use their domain names are more likely to renew them.

The second is that while it is generally accepted that it’s less expensive to keep a current customer than it is to get a new one, customers who change their buying habits can have just as much of an impact on your bottom line. Particularly in today’s volatile business climate, it makes good sense to focus on new customers and determine what additional services and benefits you can provide to strengthen that relationship – and in turn, increase revenues.  

The VeriSign Internet Profile Service for Registrars can help you identify potentially at-risk new customers with the Newly-Registered Non-Resolving Domain Names Report. This report shows new .com and .net domain name registrations under your management that are 30 to 45 days old which do not resolve. You can use this data, for example, to send targeted offers to these customers for Web site hosting, email services, or site builder tools. It can also present an excellent opportunity to find out if customers need additional technical support activating their domain names. You may even wish to reach out via telemarketing programs to customers who have registered multiple new domain names.

To learn more about the Internet Profile Service for Registrars and find out how you can receive on-going reports, please email namingmarketing@verisign.com, or visit the VeriSign web site .

Back to top

Social Networking --What Are People Saying about Your Brand 
Leveraging Social Networking to complement your existing marketing program

A recent e-Marketer study from August 2008 shows that almost half of online retailers in the US are focusing on Social Networking. If you are interested in leveraging Social Networking to complement your existing marketing program, there are some basic concepts that you should remember when implementing your strategy.

image

Forrester’s “Groundswell” is a must read for those who are new to online community. The book defines social media as a “Groundswell: A social trend in which people use technologies to get the things they need from each other, rather than from traditional institutions like corporations.”  This series of articles is structured around the basic tenets of Forrester’s Groundswell.

As you put together your plan of action for social media, Forrester recommends that you focus on four key areas, (use the acronym “POST” to remember them).

PeopleAssess your customers’ social activities. 
ObjectivesDecide what you want to accomplish. 
StrategyPlan for how relationships with customers will change. 
Technology: Decide which social technologies to use.

As you focus first on “People,” you’ll want to do research on your audience, and find out what people are saying about your brand online. There are several free tools that can help you do this.

  1. Forrester’s Technographic Profile Tool: Forrester defines several categories of social media users: the “creators,” the “critics,” the “collectors,” the “joiners,” and the spectators.”  Their free tool allows you to profile your customers’ social computing behaviors. The tool is powered by Forrester research.
  2. Google Blog Search: you can find out what bloggers are talking about, for free.
  3. Technorati.com: search on a keyword or on your brand name. Technorati also ranks bloggers according to their influence.
  4. Google Alerts: This is a free and easy way to monitor the blogosphere for mentions of your brand or products.

This is the first in a series of articles about social media.  In the next article, we’ll look at other techniques you can use to “listen” to the blogosphere, which will be your first step in any social media program.

Back to top

How to Make Email Marketing Work Harder for You 
VeriSign Webinar Series:  The Basics of Using Email to Drive Renewals

Email can be a cost-effective alternative to offline direct mail renewal efforts, if you know how to optimize your creative presentation to drive response. In the first session of a two-part series, learn how small, inexpensive changes to copy, design and layout can dramatically increase ROI on your email renewal efforts. We’ll cover best practices for:

  • Sender address
  • Subject line
  • Auto-preview content
  • Preview pane view
  • Writing copy for online
  • Email layout and design

The presentation includes real-world examples of effective email marketing that will arm you with additional knowledge that you can then apply to your own renewal efforts.

Please join us for this important session led by Jeanne Jennings, a leading consultant, author and speaker on effective email marketing strategy and tactics. She has more than 20 years of industry experience and has garnered measurable results for well-known clients such as Verizon, Mayo Clinic and Weight Watchers International.

Don’t miss the chance to participate in the first of this two part series.  Join us Thursday October 30th at 9am ET and 3pm ET for a live Q&A session.  Also, watch for information on the next Webinar, Email Marketing Part Two, to be held in November.

Back to top

eMarketer:  Where is Online Video Headed?

Key trends for online video ads and content 
Published: October 2008

eMarketer CEO Geoff Ramsey spoke about the future of online video recently at IAB MIXX. He said that in the near- and midterm, television and online video models will merge, both in content and ads. TV will get more measurement, targeting and accountability, while online video content will improve to rival TV.

One of the brightest spots will be the on-demand video model. The format, which lets consumers watch whatever they want at any time of day or night, will continue to be largely ad-supported.

Despite the rise in online video ad spending, the medium will remain small in terms of ad dollars—especially compared with the $70 billion TV market—but it will grow to over $3 billion by 2012.

US Online Video Advertising Spending, 2007-2013 (millions)

David Hallerman is a senior analyst covering online video at eMarketer. Like Mr. Ramsey, he foresees changes in ad models as the online video market grows. New models for online video advertising, such as through widgets, or new/old models, such as product placement and sponsorship, will coexist with increasing use of in-stream ads (for example, preroll), which are currently associated with traditional TV content.

The greatest increases for US video ad spending will come from large brand marketers (aka, traditional) placing TV-like commercials (mostly preroll and midroll) against professional content from large media companies.

However, much of that content and associated advertising will be distributed across the Internet, not at the destination sites of each TV network.

US Online Video Viewers, 2006-2012 (millions)

To read the full report, please contact Jennifer Moore at 212.763.6046 or send an email to jmoore@emarketer.com.

Back to top

Compliance Corner:  Payment Security Requirements

Payment Security: What Is It? 
In accordance with Section 5.1(c) of the Registry-Registrar Agreement, Registrars are required to provide VeriSign with an upfront payment, or promise of payment, prior to the start of the domain name registration process.  Known as a payment security, a cash deposit or irrevocable letter of credit can satisfy this obligation. 

How Is A Payment Security Calculated? 
It is up to each Registrar to determine a Payment Security amount that will ensure they have sufficient funds in their account(s) to cover domain name registration costs.  The amount of the payment security depends upon a registrar’s business plan.  However, at a minimum, a Payment Security must be equal to:

(Number of anticipated monthly registrations) X (number of years in use) X

(US $6.86 for .com registrations or US $4.98 USD for .net registrations)

For example, Registrar ABC Company expects to register an average of 5,000 .com domain names and 1,000 .net domain names per month.  To meet VeriSign’s Payment Security requirement, this Registrar would be required to provide a cash deposit or irrevocable letter of credit in the amount of US $39,280, determined as follows:

(5,000 X 1 X US $6.86) + (1,000 X 1 X US $4.98) = US $39,280

How Does It Work? 
As domain name registrations are processed, there is a “virtual” deduction to the Registrar’s available credit (the deduction is “virtual” since money is not transferred from the Payment Security to VeriSign). Each month, the Registrar is invoiced for domain name registrations processed in the prior month.  Prompt payment of the invoice replenishes the Registrar’s available credit, or Payment Security.  Registrars are required to increase their Payment Security at any time that their registration levels increase consistently beyond their current Payment Security.   If the available credit reaches zero, the Registrar will not be able to perform further billable transactions until a payment is made or the Payment Security is increased. 

Have questions or want more information?  Simply e-mail cao@verisign-grs.com or call 703-925-6999 and

Back to top

In the News

This section contains a selection of articles pertaining to the Domain Name Industry compiled by Information, Inc.

"Bengali and Khmer Added to IDN Testing Process" 
ICANN.org (10/09/08) Keenan, Jason  
 
ICANN has added two new languages--Bengali and Khmer--to the worldwide Internet testing process. "Each time we add a new language to the wiki, we open up the chance for more characters to be tested, and for more people to be involved and offer us input and ideas," says ICANN's Tina Dam. "Since we launched the wiki with 11 languages in October 2007, we have added six new languages." The new Bengali and Khmer wiki pages are located off the main IDN wiki page, idn.icann.org, and via bn.idn.icann.org and km.idn.icann.org. Since the addresses and certain content display in fonts that numerous Internet users may not have downloaded to their computers, ICANN has included a font page to the IDN wiki. It lets users see if the fonts are loaded, and enables them to download them if they are not. The font page is available at: http://idn.icann.org/Fonts.  
http://www.icann.org/en/announcements/announcement-09oct08-en.htm

"More Americans Watching Video Online" 
Agence France Presse (09/26/08)  
 
The number of Americans watching video streamed through a browser has risen from 32 percent a year ago to 63 percent today, concludes a new ABI Research study. The increase in the consumption of online video comes as the amount of rich content available and the number of broadband connections continues to grow. "Broadband speeds have continued to increase at the same time that Hollywood has decided online distribution is a legitimate monetization opportunity that will increase total return on their video assets, and expand audiences," says ABI's Michael Wolf. ABI found that Americans in all age groups are watching video online, but mostly younger viewers are watching movies or long-form television shows online. Among viewers over 65, 75 percent said they never watch TV shows or movies online. However, nearly half of viewers under 25, and 53 percent of viewers aged 25-29, said they watched TV shows or movies online at least once a month. "Today's younger consumers are developing habits that will mean drastic changes for the video entertainment market," Wolf says.  

"Domain Name Suddenly Worth $900,000" 
NorthJersey.com (10/18/08) Llorente, Elizabeth  
 
The Web address JoethePlumber.com, which had not received any hits during the last six months, got almost 400,000 in the day preceding the latest presidential debate. Joe the Plumber domain-name owner Joe Francis says he has had numerous offers from individuals who wish to purchase his domain name, with the most attractive offer being $900,000. Francis, who does not personally know the "Joe the Plumber" character that has been promoted as part of the presidential campaign, owns a small Amarillo, Texas-based plumbing company and could make a lot of money from selling the Web site. He says while everyone is interested in purchasing his domain name, "I don't really want to sell it. I mean, I'm Joe the Plumber, it's my Web site." However, Francis is thinking about launching a Joe the Plumber franchise. 

Back to top




Guides
Success Stories