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Dot.com price increases

Labeled as news in gTLD Discussion started by Reddstagg, Oct 28, 2019.

Replies:
15
Views:
715

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Will future price increases of dot.coms affect your future purchases?

  1. Yes

    12 vote(s)
    46.2%
  2. No

    14 vote(s)
    53.8%
Total: 26 vote(s)
  1. Reddstagg

    Reddstagg Upgraded Member Gold Account

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    I read an article this morning that perhaps should change our thinking about registering further dot.com domain names as it seems that there is to be significant increases in prices.

    Although the article is dated November 2018, it seems that the increases will commence in 2021/2022.

    Shares of VeriSign Inc. rocketed toward an 18-year high Friday morning, after the domain-names and internet-security company disclosed that it reached an agreement with ICANN to raise prices for “dot-com” names.

    Auty said that according to the agreement, the first price increase on “.com” can go through in 2021, with the effect of the increases not being fully reflected until 2022.

    I'm not sure whether all of those domain investors who continue to register these domain extensions are aware of these increases or if it just doesn't matter to them.

    My own view is that maybe the new domain extensions will gather pace in the next couple of years as we all realise that we don't have to be as regimented in our choices and that that every dot.cloud has a silver.lining.

    The full article can be read in the following link:

    https://www.marketwatch.com/story/v...ubble-levels-after-icann-agreement-2018-11-02
     
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  2. HappyW

    HappyW Owner of NamesMaker.com Gold Account

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    If the renewal price rises, then we will become very sad.
     
  3. Bob Hawkes

    Bob Hawkes formerly MetBob NameTalent Gold Account VIP Trusted Blogger

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    This was discussed quite a bit at the time. The increases of 7% per year for each of the last 4 years of the 6 year Verisign .com contract extension when compounded is a 31% increase. I think a significant issue for many is the high profitability of the company and the price compared to the real cost of offering the service.

    With a typical 1% per year sell through rate every $1 in renewal fee increase logically should up retail prices for a domain name by about $100 to cover the increased cost.

    Of similar, or perhaps greater, concern in the lifting of price caps on other extensions including .biz and .org. There was already a 10% per year cap in place, which seems like a pretty healthy increase in price, but under the new proposal no cap at all.

    In the new extension space both .club and Donuts have had price increases (in most extensions, not all, for Donuts) this year, although at the same time they are decreasing the number and prices of premium domain holdings.

    Bob
     
    Last edited: Oct 28, 2019
  4. Reddstagg

    Reddstagg Upgraded Member Gold Account

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    I think we're at the start of a renaissance or a re-imagining of mankind and what are the important issues of today. I think that what will become every day topics and ideologies are those of my youth in the 70's. Technology and planetary issues were just starting to become the trends of the day and 40 years later we are not only implementing new these initiatives, but we are tweaking the brilliant work started four decades ago.

    There will always be commerce and people getting rich in financial terms but I'm sure that we will get more satisfaction from becoming rich in other ways. The way we live and the way that we treat our planet will become even more important and people are starting to finally realize that they don't need a job in a far away place and they don't need to commute to where they work.

    We, as domain investors are part of this movement and we see that there are more people than ever trying to start businesses from home. After all, we only need a computer, the internet and some disposable income to get started and invariably, we can learn as we go.

    I am happy for the big fish to swim in their own pool, but I'm quite happy in the shallows doing my bit to get by. I don't think that someone who hasn't already built up a substantial portfolio, combined with many years experience can fully reap the benefits of the Dot.Com era as they are for all intense and purposes too late to the trough.

    They may make a living from it and therefore some money, but so very few will actually become rich. This is perhaps not a bad thing as it can become as addictive as gambling. Perhaps, we should have freephone numbers and websites of organisations that can help those who clearly have an issue with spending money they can ill afford to lose whilst domain investing.

    In my opinion, there are a couple of domain extensions that will become popular in the next five years, and there might be a couple more we could add into the mix but I think the Dot.Com bubble has got a slow leak and those pioneers who lead not follow will start a renaissance we can all follow in another 40 years.
     
  5. Bob Hawkes

    Bob Hawkes formerly MetBob NameTalent Gold Account VIP Trusted Blogger

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    Kevin Murphy just posted today that it looks like ICANN are about to approve the 4*$7 increase in .com renewal rate, along with also the freedom to set up a registrar, as long as it does not sell .com. He speculates why this has taken so long and whether there are other things we are about to learn, such as is URS going to be tacked on as they have done with some other TLDs.

    http://domainincite.com/24893-verisign-likely-to-get-its-billion-dollar-com-pricing-windfall

    An important read for everyone.

    Bob
     
  6. Ategy.com

    Ategy.com NameCult.com Gold Account VIP

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    It just boggles my mind that one of the most profitable businesses in the world is being allowed to raise prices even more on the back of what's should be the lowest-pricing barrier possible on the most important piece of infrastructure in the world.

    It's truly shameful and tragic what they did with .org .. now this!
     
  7. Reddstagg

    Reddstagg Upgraded Member Gold Account

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    And the votes are in. The poll results show a 50/50 split with 7 people saying Yes and 7 people saying No.

    We shall have to see whether there is any significant drop in Dot.Com registrations once the price increases start to kick in.
     
  8. MapleDots

    MapleDots Domain Properties 2002 - 2019 VIP

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    Personally I hate to say it but compared to e netflix subscription or similar a domain name is relatively cheap.
     
  9. Jurgen Wolf

    Jurgen Wolf Top Member VIP ★★★★★★★★★★

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    Only when you have just 1 domain.
     
  10. Jurgen Wolf

    Jurgen Wolf Top Member VIP ★★★★★★★★★★

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    It always matters.
    Especially for holders like HugeDomains.
     
  11. Chairul avif

    Chairul avif Member Epik.com Staff

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    With the rise in price of .com and maybe some other domains under Veriign management, can we conclude that this is good news for cctld or others Gtld?
    Maybe some other TLD managers will applaud this decision because they had more value than .com
     
  12. Reddstagg

    Reddstagg Upgraded Member Gold Account

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    I'm fairly certain that it will always be a 50/50 split as some people in the domain investing world will be nailed into their final resting place and they will have "Dot.Com is king" written on their brass plaque.

    Sometimes, when something is so ingrained into someone's psyche they will never change their beliefs.

    The tide of change is occurring before their very eyes and yet they still can't see it.

    When the good old fashioned Entrepreneurs of my youth have all but disappeared there will be a new breed ready to rise and they sure as heck won't be sticking to the principles of conventional wisdom.

    They won't accept the status quo and they will no longer remember that Status Quo were a famous rock band.

    They will take more risks than their predecessors and they will have less patience. They will want it now and they will want to break the internet.

    New wealth will be traded for acceptance by their peers and domain investing will become their playground.

    They will not give-a-f$$k.com and will do what they please.

    They will be living in a very organised bland magnolia vegan fun-free world and they will get bored.

    They will not want Dot.Coms anymore and they will enter the-brave-new.world
     
  13. MapleDots

    MapleDots Domain Properties 2002 - 2019 VIP

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    They will simply raise prices to compensate, life will continue.
    Everything is going up like crazy and if you look at the price of a burger in a restaurant you would never have believed 10 years ago that you would pay that much, yet we do.

    Do I like it, no, will I cut my base of .com's? No

    However, when I sell it is based on the cost of my portfolio so obviously prices have to go up.
     
  14. MapleDots

    MapleDots Domain Properties 2002 - 2019 VIP

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    Yup, and Apple will use apple.orchard as their main domain. :xf.wink:
     
    Last edited: Nov 4, 2019
  15. Mister Funsky

    Mister Funsky Top Member VIP

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    Yep...I will thin the herd. For each increase I will cull the equal amount in names...7% increase equals a 7% drop (or move to wholesale/closeout). They are trying to maximize profits with no change in value...it will lead to an overall decrease in fringe/bottom names being held long term.
     
  16. Bob Hawkes

    Bob Hawkes formerly MetBob NameTalent Gold Account VIP Trusted Blogger

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    While odds are I would decrease, it is not really a simple thing to answer.

    For example if all TLDs increase by about the same, probably the only thing that will happen is end prices increase by the .com change times the recipricol of the sell through rate. We have already seen increases in a number of the new gTLD renewals this year, and the price caps are gone, or about to be gone, from .org, .biz.

    If a price change causes players to leave the domain market ironically the environment for selling might improve and it is possible I would hold more.

    See how I make even simple questions complex? :xf.grin:

    Bob
     

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