Massive renewal fee increases

[Jimmy.com]

Received this email from enom today.

Not so good news if you own one of these for investment purposes. Not even good news for actual businesses owning and using one of these.
It's like your property tax suddenly increasing by 600%

But hopefully if registry's continue in this direction then people will start avoiding some of these gltds altogether and run back to the good old .com

 

[garptrader]

Where demand is strong increased business costs can be passed on to cu stomers. For example in downtown West Palm Beach restaurants and other service providers charge a premium because rents are high. However for those services where customers are not willing to pay a premium those businesses quickly go under. I have seen many restaurants and clothing outlets and art studios fail as the few customers they had just did not pay the bills. Ditto with domain portfolios where renewal costs exceed sales. While the industry touts domains as internet real estate most end users just want a domain for their website and are not looking to pay much more than $50 for one. With a thousand tld options there is nothing special about any NOT .COM. Of course registries can also use raised renewals as a means of clawing back better keywords. Drops increase and then a couple years later they release them again. .TV has existed for more than fifteen years yet those $30 renewals have forced me to drop close to 70 per cent of what I once held. Demand is too weak to justify the renewals. Those five figure sales are not as common as the headlines make it seem.

 

[anantj]

I just read the comments in the comments section of the OnlineDomain.com link above. There was back and forth about what happens to a grandfathered domain when it is sold. Does the new buyer get the grandfathered renewal cost going forward? It's a great question.

Yes, the buyer gets the grandfathered cost. The price is determined based on the domain creation date. So if that same domain is dropped and re-registered, then it will be at these new prices. This is confirmed information

 

[ProDomanico]

Massive increase == Massive drops

 

[Fancy.domains]

Massive increase == Massive drops

Yeah, I am tracking the new gTLDs on a daily basis and this will be interesting.

Personally, I think Donuts is moving in the right direction and they are, by far, the biggest player in the gTLD jungle. I hope the will continue doing it that way!

 

[Josytal]

When the going gets tough, registries/registrars get greedy. Failure signals everywhere - for those who have eyes to see, ears to hear. Run/Fly away from those jaundice nGTLDs.

 

[Samer]

Martin Skrelli raised the price of a rare HIV medication from $13.50 a tablet to $750 (5000% increase)

Overnight.

That's what this reminds me of. Haven't seen price increases this dramatic in a while. Domains included

$15 to $400?

 

[adrey]

They are killing all the new extensions. It’s a waste of time and money.

 

[offthehandle]

But there is an joke application for Juegos!

Pitch: Hurry, this is a limited time offer and expires in 30+ days, get in on this rare opportunity before the price increase:

Whateveregistry . Juegos
SnakeOil . Juegos
ShillBidderCaught . Juegos
InsiderTradingBrandMarketplace . Juegos
XYZ88centJokes . Juegos
ExpiredFakeAuctions . Juegos
CoverUpOfShillBiddersNames . Juegos
NGtld . Juegos
NotCom . Juegos
1200NewExtensionsNobodyWants . Juegos
FakeAppraisalEmailScam . Juegos
NoMore . Juegos

Lol. But seriously...

NameProsMembersAreTheBest . Com

 

[Bob Hawkes]

Personally, I think the best move would have been to charge like 8-9 dollars a year, for any of them. Just as .com.

With that said, Schilling is a much more successful businessman than me. Maybe he know what he is doing after all. Time will tell.

I agree that the new gTLD market would work much better if rather than offering super low initial prices and large renewal, they offered constant rates, with perhaps modest sale prices every now and then. The current system encourages widespread buying and then letting lapse.

 

[domaintrades]

Is this the result of inflation, or do people like this create the inflation?

I guess it's a bit of both.

 

[Marc Riccio]

One more of the stupid things that go on in the domaining scam. The more I learn, the worse it gets. I thought this would be a fun hobby, but with increasing costs, crazy registrar rules and so much nonsense, it's just not worth the hassle.

I can make more $ XXXX hustling pool and golf and have more fun.

M

Ps - I guess I'll get flamed now....oh well.