news Prices Increasing, Does It Make Sense To Renew In Advance?

[Bob Hawkes]

The wholesale price of .com domain names is increasing by 7% on Sept 1, 2021. This is the first of four approved price increases in the extension, over the next four years, so the compounded increase will be about 31%.

The actual retail price increase varies with registrar, and you can see some of the announced price changes in this NamePros discussion. Some are applying increases above the wholesale increase.

There have also been announced changes in other TLDs, for example, wholesale .xyz prices are increasing on Sept. 1 as well, by about the same amount.

In an article just published at NameTalent, I apply probabilistic thinking to the question of whether it makes logical sense to renew domain names in advance. The model is simple, so you could readily apply it to your own assumptions re current and future prices, and projected personal sell-through rate on the domain name under consideration.

Read full article ......

 

[DN_Hunter]

For the GD DD club they offered multiple year plans. Not sure why I only got the 2-year plan. I actually had a 2-year plan before that. But I let it expire first. Then I purchased the plan again. This allowed me to use a GD 35% off coupon. The coupon was only good on new products (not renewals).

With a large enough portfolio the GD DD club can save you way more than what the plan costs. But you have to crunch the numbers to see where you will break even and whether or not it will save you in the long run.

 

[Robin A.]

I received an email from GD about their intended price increase. I have the Discount Domain Club, and the price for .COM is changing on Sept 1st from $8.29 to $8.85

Same here - also have the GD Discount Club. But I didn't receive an email yet that they will increase prices. Time to give them a ring. Thanks

 

[lock]

The price increase was like 50c.

 

[CraigD]

2024 Feels so far into the future as thought i would be so old year 2000. Flying cars.

DeLorean's, mate.
You're only as old as your last Fiero rebuild .

 

[CraigD]

For the GD DD club they offered multiple year plans. Not sure why I only got the 2-year plan. I actually had a 2-year plan before that. But I let it expire first. Then I purchased the plan again. This allowed me to use a GD 35% off coupon. The coupon was only good on new products (not renewals).

With a large enough portfolio the GD DD club can save you way more than what the plan costs. But you have to crunch the numbers to see where you will break even and whether or not it will save you in the long run.

Thanks. Yes I agree.

I've been a member for over ten years. I'm not saying it's a bad plan, but even with the discounts, there are still better renewal prices out there for many extensions if you are prepared to shop around and move domains every year. The other benefits add to the value, like the marketplace. Still, the membership costs have increased recently to the point where I am wondering if it is still worth it if you don't actually really need the other benefits.

I'm thinking about renewing coms with GD for next two or three years and dumping the DDC till I actually need it again.

 

[jiy k]

Also, I think you can factor the length of renewal into the negotiation itself. I have closed many deals by offering (10) year renewals in the package. It helps the buyer spread out the cost in their mind.

Hello,
Can you please elaborate this in detail.
Thank You.

 

[jiy k]

If the buyer is stuck on the up front cost, I will often offer to throw in a (10) year renewal as a way to sweeten the deal.

Where you think it helps to close the deal, you offer a Ten year renewal cost discount to the buyer.

 

[The Durfer]

i see no reason to not renew at lower price, just makes sense to save a buck, but eventually we will have to face the increase, and its probably good for the bottom line anyway. ty.

 

[equity78]

I renewed about 700 domains today after some recent sales. I like to take future expenses off the table in good times.

I know, making responsible financial decisions is boomer mentality.

Brad

700 at once wow Brad, that's a big number. Are you north of 5,000 domains?

 

[Maximinus]

31% in the next 4 years is quite an increase.
Renewing domains for 1 or 2 years is just a short term solution.
Chepest renewals can be achieved by promotional transfers.
Spreading portfolio between 2 registrars is a screaming solution.
I've already chosen 2 registrars which often propose transfer promos(I don't believe this practice will change)
The downside is transfers require more work and promos are not predictable in time.
The advantage - up to 2$ savings per renewal.
I hope this helps!

 

[HotKey]

Kudos if renewing well ahead, years even. A preparedness mindset and a stability cushion can never hurt. But for the sole sake of a slight price increase is pointless, imo. You're never truly in control of something you don't fully own. It will always have to be dealt with eventually.

And wanted to mention as FolioTeam did, great new site Bob, looks fantastic!

 

[Robin A.]

I received an email from GD about their intended price increase. I have the Discount Domain Club, and the price for .COM is changing on Sept 1st from $8.29 to $8.85

Odd. I called GD support and asked about any upcoming price increases. Was told they are not aware of any price changes.

 

[E-Promote]

Odd. I called GD support and asked about any upcoming price increases. Was told they are not aware of any price changes.

That's not "odd", that's GD (always a few clueless on phone staff).

 

[Name Trader]

That's not "odd", that's GD (always a few clueless on phone staff).

With GD's margins on domains, They probably don't need to worry too much about their retail customer base not paying enough