new gtlds 16 new TLDs will get price increases of up to 3,000%

[Shimmy]

Uniregistry is to massively increase the price of some of its under-performing new gTLDs in an effort to keep them afloat.

Sixteen TLDs from the company’s portfolio of 27 will see price increases of up to 3,000% starting September 8, CEO Frank Schilling confirmed to DI today.

Link to article:
http://domainincite.com/21603-schilling-big-price-increases-needed-to-keep-new-gtlds-alive

 

[jmcc]

Many gtlds are dropped because $20 a year renewals are more than domainers want to spend on renewals

Strange as it seems, renewals on more expensive TLDs tend to be better than those on cheaper TLDs. This is because people don't want to consider their past investment to be either a mistake or have developed a website or use the TLD for their e-mail address. Domainers only form part of a TLD's market and some registries are not particulary enthusiastic about having domainers overrepresented in their TLD because domainers rarely develop websites on their domain names and often park domains on PPC. The priorities of registries and doaminers are often quite different and this is going to be an expensive lesson for a lot of domainers.

Regards...jmcc

 

[platey]

New gtlds are I assume funded by purchase price alone etc but it won't be long before the likes of gd or the big G lol buy loss making new gtlds and subsidise them with ad $'s which may even be required to because of large cooperate companies that may have paid big bucks to acquire a premium gtld domain in a loss making gtld

 

[jmcc]

Yes, he seems very confused on all of this.

Sometimes I wonder about these people who were advising all these new gTLD operators. Most of them appeared to only have a very narrow level of experience in the US market and specifically with .COM. Running a registry is completely different to running a domainer portfolio. Frank and a lot of other operators are learning this lesson the hard way.

Regards...jmcc

 

[Fancy.domains]

Personally, I will drop all my Uniregistry names and transfer out all other names from them. I have had a few issues with them before and just do not trust 'em.

 

[Fancy.domains]

GoDaddy's response: http://www.domaininvesting.com/godaddy-comments-on-uniregistry-price-increase/

Rightside's response: http://www.domaininvesting.com/rightside-focused-on-building-relationships/

Donut's response (text from a blog post):

Donuts isn’t in a position to comment on a competitor’s pricing decisions. Speaking for ourselves, however, we have no plans to increase prices for existing registrants — this is not part of our business plan. We voluntarily entered into agreements with our registrars that dramatically limits our ability to increase prices for existing registrants. Case in point, in the only instance to date of an upward price adjustment (effective last October 1), we increased our prices for only unregistered names and exempted existing registrations.

We understand the negative impact that unexpected price increases have on domain investors, and we want to underline again how much we appreciate the value that domain investors bring to Donuts and to the industry.

 

[betthelot]

GoDaddy's response: http://www.domaininvesting.com/godaddy-comments-on-uniregistry-price-increase/

Rightside's response: http://www.domaininvesting.com/rightside-focused-on-building-relationships/

Donut's response (text from a blog post):

Donuts isn’t in a position to comment on a competitor’s pricing decisions. Speaking for ourselves, however, we have no plans to increase prices for existing registrants — this is not part of our business plan. We voluntarily entered into agreements with our registrars that dramatically limits our ability to increase prices for existing registrants. Case in point, in the only instance to date of an upward price adjustment (effective last October 1), we increased our prices for only unregistered names and exempted existing registrations.

We understand the negative impact that unexpected price increases have on domain investors, and we want to underline again how much we appreciate the value that domain investors bring to Donuts and to the industry.

Meaningless only 3 years ago Frank was saying the same. You can't put the genie back now fancy.domains you have been shafted by St Frank. Like most cults it's ends in disbelief and tears.

 

[Fancy.domains]

Meaningless only 3 years ago Frank was saying the same. You can't put the genie back now fancy.domains you have been shafted by St Frank. Like most cults it's ends in disbelief and tears.

Just sold a few new gtlds mate and have owned and sold .coms, .nets and .orgs since 1997.

 

[betthelot]

Just sold a few new gtlds mate and have owned and sold .coms, .nets and .orgs since 1997.

Good for you, just got tougher though.

 

[Jacko22]

It is unfortunate for Unregistry domain name owners. I find it hard to believe that these names need a 3000% increase. I wonder if they looked internally for any cost savings if they are losing that much money.

That being said, a gtld registry operator recently as of two days ago dropped their prices from the high cost which was between $500 and $1000. Now they sell between $10 to $50. I think they have an understanding that people even companies don't want to spend hunderds of dollars for a name.

 

[Fancy.domains]

Good for you, just got tougher though.

Yeah!

 

[Traveler]

What we can take for granted is that more TLDs will be retired, and not just corpTLDs where the harm caused by retirement is nil.

I don't know that it can be taken for granted that a non corpTLD will be retired. Maybe that will happen or maybe the TLD will be handed over to another entity. If one was to be retired, that would shake the foundation for sure. Who would want to purchase, let alone build on an extension that could disappear.

 

[urlurl]

110% right, i wouldn't bother with any of these new extensions (for development) unless i owned the .com first.

 

[Phgauge000]

As someone who has invested in the new gtlds , I can say his prices increases won't affect me even 100.00 a year ... I don't own but very few of the strings being affected ... A few .link that's all.

I don't think it affects my portfolio of names mostly donuts .

 

[GeorgeK]

As someone who has invested in the new gtlds , I can say his prices increases won't affect me even 100.00 a year ... I don't own but very few of the strings being affected ... A few .link that's all.

I don't think it affects my portfolio of names mostly donuts .

You might believe that right now. But, let's suppose you intend to sell some of your domain names (if your business model is to resell, as opposed to being an end-user), rather than just hold them. The market value of your domains has been significantly affected, because now buyers will know that their total cost of ownership (initial price plus renewals) not only is uncertain, but has a chance of being astronomically high. Let's consider an equation from a buyer's point of view:

Total Cost of Ownership = Initial Price + Net Present Value of Future Renewals

To maintain a given total cost of ownership, if the expected "Net Present Value of Future Renewals" goes up, then the "Initial Price" must go down!

In many cases, the Net Present Value of Future Renewals will be so high that the Initial Price would have to be NEGATIVE! (i.e. the investor who is selling the domain name is essentially wiped out, and can't even give it away)

New gTLDs were always toxic. Punyregistry just made it clear to some exactly why, knowledge that more experienced domain name owners knew long ago (and thus shunned those TLDs, even at 1 cent or free). Go back to the ICANN comment periods years ago, and you'll see this. Frank Schilling himself was against such behaviour by registry operators, if it would affect his own domain names in .com/net/org, etc. That's why he plows his own money into .com (via expired domain name auctions).

The Punyregistry news hasn't reached the mainstream/traditional media yet, but it will as registrars slowly inform their customer base of the price changes. Some registry operators are already trying to distance themselves, but why should you trust them not to do the same thing? Empty words should be heavily discounted. Binding price caps by ICANN, which registry operators fought against, are the only solution.

 

[GeorgeK]

For those who are critical of Frank Schilling and have domain names registered at Punyregistry, take a hard look at section 2.15 of their registration agreement.

https://uniregistry.com/legal/registration-agreement

2.15 Revocation

We, in our sole discretion, reserve the right to deny, cancel, suspend, transfer or modify any domain name registration to correct a mistake, protect the integrity and stability of our operations and of any applicable registry, to comply with any applicable laws, government rules, or requirements, requests of law enforcement, in compliance with any dispute resolution process, to address fraudulent payments or identity theft, to avoid any liability, civil or criminal or in response to abusive, threatening or harassing communications directed to us or any of our employees or agents in the scope of their employment. You agree that we shall not be liable to you for loss or damages that may result from our refusal to register or cancel, suspend, transfer or modify your domain name registration under this section."

(emphasis added) So, my reading of this is that, if in their "sole discretion" they don't like what you're saying about them, and deem it "harassing", they reserve the right to cancel your domain, and you agreed that they shall not be liable for that decision.

 

[Shimmy]

surprised they care about being liable since they are run from the Cayman Islands. Not many people would go to Cayman Islands to sue.

 

[DnEbook]

This is why .com is king ........less B.S

 

[GoKaizen]

Transfer you domains out, pull them from the marketplace.

For those who are critical of Frank Schilling and have domain names registered at Punyregistry, take a hard look at section 2.15 of their registration agreement.

https://uniregistry.com/legal/registration-agreement

2.15 Revocation

We, in our sole discretion, reserve the right to deny, cancel, suspend, transfer or modify any domain name registration to correct a mistake, protect the integrity and stability of our operations and of any applicable registry, to comply with any applicable laws, government rules, or requirements, requests of law enforcement, in compliance with any dispute resolution process, to address fraudulent payments or identity theft, to avoid any liability, civil or criminal or in response to abusive, threatening or harassing communications directed to us or any of our employees or agents in the scope of their employment. You agree that we shall not be liable to you for loss or damages that may result from our refusal to register or cancel, suspend, transfer or modify your domain name registration under this section."

(emphasis added) So, my reading of this is that, if in their "sole discretion" they don't like what you're saying about them, and deem it "harassing", they reserve the right to cancel your domain, and you agreed that they shall not be liable for that decision.

 

[Doron Vermaat]

Damn, there goes my development plan for Doron.sexy

 

[DNWon]

Damn, there goes my development plan for Doron.sexy

Lol,Yeah, you should probably just stick with developing DoronIsTheMissing.link?

 

[Silentptnr]

The evolution of the domain name market and specifically ngTLD's will be interesting.

All in all, we have to anticipate changes. Large numbers of speculative registrations have fueled the existence and growth of businesses like Uniregistry. These speculative registrations were mostly because of cheap prices. Once those cheap prices go away, the speculators will go away.

Ultimately, the strong will survive. In my opinion, many domainers have unknowingly been a part of a large pump and dump. Maybe we call it buy low, sell high, but the reality is pump and dump. That formula always leaves someone holding a big bag of air.

Personally, I like some ngTLD's. Approximately 10% of my domains are ngTLD's. I have another 20% in ccTLD's and the rest in .com. I will have no problem dropping or giving away domains that don't work in my business model.

Best of luck to Frank and Uniregistry. This business is not easy. My only advice to you is stay out of the domaining business. Lose the premium pricing and establish a pricing structure that is balanced and fair.
The market will decide the value of your products.

 

[dordomai]

I am sure that every other registry will eventually copy the higher price model or be bought by one that does.

“We have no immediate plans to increase our wholesale prices.”

Which could mean that they do not exclude the possibility of price increases in the future.

Frank`s statement would worry me a lot if I had invested. Does anyone believe a domainer could afford his pricing structure? I do not see how one can make money with these prices.

If other companies like Donuts were to adopt it that could pretty much end domain investing in the extensions that make use of it.

The question is if he knows what he is talking about and if his projections are accurate.

if others do the same, I would say game over. Not necessarily for the registries or end-users but for investors.

The way I interpret his statement is that investors will sooner or later be priced out of the market. Does not surprise me but I would not have expected to hear this anytime soon.

So when you buy a new TLD domain, do not exclude the scenario of being f*cked by the registry when you expect it the least.

Rick Schwartz‏ @Arpit131

If @Frank_Schilling does well, ALL #gTLD's will change their models. Domainers are TOE JAM. Swallow HOOK, LINE and SINKER. #Domains #gTLD

 

[RJ]

Donuts: “we have no plans to increase prices for existing registrants”
Source: https://onlinedomain.com/2017/03/09...o-plans-increase-prices-existing-registrants/

Article also quotes .Club, GoDaddy, and Rightside coming out against raising prices on gTLDs.

 

[hullswingerscom]

have uni sent emails to there customers on the domain price rise ?

 

[Kate]

You will always be screwed with unregulated extensions.
Stick to legacy gTLDs and mature ccTLDs and you'll be fine.

Hats off to icann for pulling out the cyberheist of the decade. They aren't struggling financially you know.