I've never actually done an interview on this site but in this case I felt it was important. I myself, am not entirely sure what to think about .tel names, especially when it concerns the reseller market.
So, I've decided to ask a few pointed questions to Khashayar Mahdavi, the CEO of Telnic. He was kind enough to provide thorough answers.
Please explain how the .tel extension works differently than other extensions. For example, what makes it different than .mobi names?
The .tel is the first domain that is dedicated to communications and that allows people to store, publish and update online all their contact information and keywords under their domain name, without the need for a website. This means .tel it has a totally different purpose than other domains. Instead of linking domain names to IP addresses of websites, we’re storing and publishing contact information directly in the DNS.
For example, telnic.tel does not return an IP Address as with other domains. It returns the contact information and keywords that our company chose to store directly in the DNS. You can then click on one of the contact details provided (tel, email, fax, location, website, etc…) and immediately reach us.
We believe that .tel the biggest innovation since .com because of this new purpose and service, and we expect it to spur innovative monetization strategies and drive significant growth in the domain name industry. We’re bringing a different and new value to the domain name market which will benefit everyone.
How can my audience (professional domainers) profit from .tel names?
The .tel adds several monetization opportunities that investors should appreciate which widen the ability for a domain developer to generate revenue in parallel with traditional website-driven monetization strategies.
The .tel spreads the risk of investing over multiple methods of generating revenue, such as PPC and premium rate numbers for voting and betting services. There is also value in owning vanity names, whether business or consumer focused. It’s also possible to run a commercial directory service under a .tel domain and, of course, it is possible to provide links to revenue generating e-commerce storefronts. Additionally, due to the unique content published in a .tel domain, pairing it with existing investments in .com and other domain names will lead to better SEO – a key goal in revenue generation.
Why are they so expensive?
.tel domains aren’t expensive when you compare the services I’ve just described to other services which offer similar functionality. The .tel domain simply cannot be compared to other domains. However, when General Availability begins on March 24th, the price for a .tel domain will be about the same as any other domain available today (about $20 per year). Furthermore, all existing domains have hidden costs of web hosting and ongoing development, which do not exist with .tel domains. So once you remove the hidden costs, a .tel domain is much less expensive than a traditional domain.
Concerning Landrush prices, Telnic has made the decision not to auction any domain names, making even the best of names available on a first-come, first-served basis at a fixed price. We consider this to be the fairest method and the best way to support entrepreneurs wanting to create a new business behind their .tel. So, for example, anyone can register NewYork.tel for a 3-year term only for $375. Had we chosen to auction these names, at what price do you believe NewYork.tel, LosAngeles.tel and Dubai.tel would have gone for? Surely more than $375 for 3 years and no hidden costs for web hosting or development.
Don’t you think that bloggers and individuals would be more likely to get .tel names if they were less expensive?
People will be able to buy their .tel domains during General Availability starting on March 24th at around the $20 per which offers great value for the price. We are already seeing pre-booking activity for General Availability.
How has your launch gone so far? Have you registered more, less or about what you expected?
During Sunrise we had over 10,000 applications despite the very restrictive Sunrise policy we implemented that only allowed applicants with trademarks with national effect and fully validated documentation to apply. Thousands of .tel domains were registered including such companies as: Microsoft, Google, CNN, MySpace, FedEx, Sony, Ferrari, Starbucks, NYPD, Apple, Marriott, Nestle, Visa, Lucent, DeBeers, Exxon, Harvard, Old Navy, Red Bull, Xerox, Hard Rock Café, Alamo, L'Oreal, Lotto, PartyPoker, Philips, HBO, RIM, Vogue, Virgin Media, Rolex and many more. These registrations represent a broad cross section of industries and geographic regions.
Furthermore, we have seen a lot of good press throughout the world, indicating that people are thinking about this in a very serious way. The .tel has been covered on CNN, Bloomberg, BBC Online, Herald Tribune, The Financial Times, The New York Times and many more.
Please describe your transfer model which affects resellers. Is it a simple auth code model like used in most major extensions or do domainers need to fax a ton of signed paperwork?
This is a simple authcode model.
Any last thoughts or comments you would like my readers to know?
All great innovations have been met with healthy skepticism. The .tel is no different as it truly brings a different use for domain names.
The .tel is now creating new opportunities for the domainer community, as well as a new ecosystem that includes non-traditional players entering the domain name industry, such as social networking sites, directory service providers and Voice over IP companies. Some have already begun the process of becoming an ICANN Accredited registrar as they see the potential of the .tel as a communications hub for businesses and individuals.
We believe that these non-traditional players will be a driving force of growth for .tel domains and the domain name industry as a whole and lead to a new value being assigned to domain names. This can only help the domaining community realize a different revenue stream and harness richer profitability as consumers continue to modify behaviors and purchasing habits in this fast-paced online world.
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