30 Jun '15, 3pm

Slotting fees and supplier rebates in the domain name industry

Slotting fees and supplier rebates in the domain name industry

The domain name registration business has some similarities to rebate policies in the grocery business. You have to pay for eye-level exposure. I read an article in The Economist over the weekend about grocery chains and supplier rebates, and it had a number of parallels to the domain name industry. Grocery stores make profits in two ways other than from the margin on selling food. First, they get slotting fees from food manufacturers that want shelf space, with higher prices for better space. As an example, Hostess might pay a grocery chain to position Twinkies and Ding Dongs at eye level while competing products are lower on the shelf. This is akin to registries paying registrars to place their extensions higher in search results. Second, manufacturers pay rebates to grocers when they boost sales by running promotional offers on their products. This is a common practice ...

Full article: http://domainnamewire.com/2015/06/30/slotting-fees-domain...

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