.com/.net Domain Renewal Rates dropping

[DNProperty.com]

The lates Verisign Domain Industry Brief for the 3rd Qtr 2008 shows many trends..

http://www.verisign.com/static/044349.pdf

Domain renewal rates are at a low of 72% compared to the highs of 77% in 2006.

I expect this number to further drop when the 4th Qtr report comes out...Verisign conveniently fails to point out that increasing Renewal Fees (at one of the worst economic times) had the most to do with this drop in renewals...

Post away your thoughts...

 

[-REECE-]

Completely agree -- further drop and obviously the geniuses at VeriSign know darn well the real reason for it. Who the heck raises prices during a recession? The only one worse than VeriSign is Rolex -- they've raised their prices twice this year already (I'm sure VeriSign would have raised it twice as well if allowed)

The lates Verisign Domain Industry Brief for the 3rd Qtr 2008 shows many trends..

http://www.verisign.com/static/044349.pdf

Domain renewal rates are at a low of 72% compared to the highs of 77% in 2006.

I expect this number to further drop when the 4th Qtr report comes out...Verisign conveniently fails to point out that increasing Renewal Fees (at one of the worst economic times) had the most to do with this drop in renewals...

Post away your thoughts...

 

[Domagon]

Comcast raises rates during recessions, and by just as much as if it was still 1999.

Out of my portfolio of what was once over 1300, I've whittled it down to under 400...

Between those I liquidated for practically nothing (many to buyers who take a calculated gamble on near-expiration domains) and hundreds I allowed to expire outright, I'd wager, on the 4th qtr 08 / 1st qtr 09 reports, one will be able to attribute 600+ less renewals to me alone...

Multiply that times many other domainers and companies with large "defensive" portfolios, and it's near certain, the numbers are going to be far worse going into mid 2009...

To raise prices in a recession, especially for something like domain names, whose maintenance cost is already greatly inflated (some knowledge folks say the actual is under $2 each) and whose profit margins are huge already is foolish - but not surprising for companies that only look ahead a quarter or two, but I digress.

The overall number of domains across all cc/gTLDs will continue to grow - ICANN is making sure of that :lol: ...

However, there's going to be much pain in many of the TLD registries, and especially for many registrars that rely on rapid domain registration / transfer-in growth, who can't compete against the biggest, such as GoDaddy that consistently earns a bundle due to agressive upsells and economies of scale.

Ron

 

[netfleet]

The lates Verisign Domain Industry Brief for the 3rd Qtr 2008 shows many trends..

http://www.verisign.com/static/044349.pdf

Domain renewal rates are at a low of 72% compared to the highs of 77% in 2006.

I expect this number to further drop when the 4th Qtr report comes out...Verisign conveniently fails to point out that increasing Renewal Fees (at one of the worst economic times) had the most to do with this drop in renewals...

Post away your thoughts...

Slight correction... COM & NET renewal rates are falling as is the corresponding growth in new regos.

ccTLD's are remaining strong with 26% rego growth (it didn't report on renewals for ccTLDs but I'm sure that it would be as high as ever. In fact would be interesting to find out that figure...? anyone?)

 

[DNProperty.com]

Agreed, ccTLD renewal rates would be an interesting figure to find out...depending on the ccTLD's, prices do vary quite a bit between countries...

New registrations in .com/.net could be dropping also due to lack of "high quality names"...the point I was trying to drive was Verisign increasing prices starting in 2006 potentially contributing to lower renewal rates also...

 

[Kate]

Personally I am not going to drop my domains just because the renewal fee has been raised by less than $1...

 

[BigSotong.com]

apart from increasing cost, other factor would be the decline in PPC earning, making many domains unattractive to keep.

 

[snoop]

Makes sense for Verisign to do this, they are in a monopoly position. Agree renewals rate will constinue to fall, I think it is more to do with recession (big factor) than rising prices (smaller factor).