The DailyBeast.com just published a story entitled: “How “.XXX,” Porn’s Domain Name, Made Hundreds of Millions”

“”CM has sold just short of 230,000 “.xxx” URLs, according to official data from ICANN. That’s five times more than the company expected when it first filed with ICANN. Indeed, in his original business plan, Lawley’s best case scenario was reaching 250,000 names after five years. The company has amassed more than 70 worldwide resellers, middlemen like GoDaddy, who have pumped up sales volume.

At minimum, each of those 230,000 “.xxx” domains bring in $62 a year at the wholesale rate—about 10 times the average fee for a “.com.” But ICM also sells “premium” names for huge pricetags. Gay.xxx? Sold for half a million dollars. Fetish.xxx and Shemales.xxx went for $300,000 and $200,000 apiece. The lion’s share of the rest go for above $50,000. The company has sold more than 200 premium names so far, and just listed another 1,000. If you’re interested, you can be the proud owner of www.girls.xxx for $222,000.


For Lawley, the speculation will pay off. Do the math, and the company is on track to pull in almost $200 million this year.”"

What the story doesn’t say is that of the $62, $10 goes to IFFOR the non-profit foundation and $2 goes to ICANN.

So the number ICM the registry of .XXX gets is $50 and even if 230,000 domains were straight registrations that would only come to a little over $10 million, I’m not sure how the author got the number up to “over $200 million for this year” alone.

However the latest ICANN report for June filed by ICM only shows less than 140,000 registrations (pdf) which at $50 per is only over $7 million a year.

Where’s the difference you ask.

Well there are those 80k+ defensive domain registrations which are 10 year blocks but as the name indicates ICM collected a one time payment for 10 years of non-use for each of those domains.

Even at $250 per block that amounts to $20 Million.

ICM says they have sold over $5 Million in premium domain sales, so my total is, at most $35 million for the year, well less than the $200 million cited by the article.

Moreover consider that for the 80,000+ blocks ICM won’t get another dime for 9 more years.

You can read the entire article here and do you own math.

 

 

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