So what's domain reg fee price hike all about?

[SpongyBob]

Ok, I have to say I've been alittle out of the loop lately when in comes to domain names. But I notice prices for .com domain name (and possibly others extensions) registrations seem to be going up all over. Mind if I ask what's this down to? Is this Network Solutions hiking it's wholesale price, after ICANN rolled over and played NS b*tch with the deal it done with them? Or is it down to ICANN increasing it's fee?

TIA

 

[cache]

ICANN recently hiked the fees.

 

[shockie]

well indirectly they did by letting verisign do it...

 

[DNabc]

Exactly. Verisign raised wholesale's price by 7% and they will do it again in future years...

 

[Spade]

Exactly. Verisign raised wholesale's price by 7% and they will do it again in future years...

Yup, expect future increases

 

[fonzie_007]

Versign needs to lace their pockets even more (for a service with decreasing costs)... Greedy b*stards...

 

[bizwiz]

If you have hundreds of domains, the price increase will really hurt.

 

[Sabre]

Isn't it just following inflation though? Wages are increased / products and service costs are being increased.

Also, the US Dollar is performing very poorly at the moment and doesn't look like improving for the foreseeable future, so it was always going to happen.

 

[-REECE-]

Isn't it just following inflation though? Wages are increased / products and service costs are being increased.

Also, the US Dollar is performing very poorly at the moment and doesn't look like improving for the foreseeable future, so it was always going to happen.

Verisign's costs aren't linear. More names being registered means a smaller fraction of the money associated with each name (your reg fee minus registrar's premium) going towards maintenance, administration, etc.

If .com regs go up 100% next year, they don't need to double their staff, their hardware, etc. It's alot less than that and that's why most of us domainers are pretty $%&*#@ about this unjustified gauging. It's also a good reason why ICANN should be accountable for their actions/decisions.

 

[shockie]

Isn't it just following inflation though?

inflation occurs, but 7% year after year is definitely above average. these are domains, not energy!

 

[Domagon]

On the bright side, from my understanding, VeriSign can't raise rates every year in its 6 year contract ...

Though despite that limitation, over the course of the next several years, their price could still potentially rise to around 30%+ more than now to nearly $8...

Which for most domainers would equate, assuming the max increases happen (which is very likely!), at the end of the 6 year contract, to a retail price of around $10.

Not a lot, but definitely will hurt bulk domain holders ... though at least the increases are limited and predictable so one has plenty of time to budget for them.

Ron

 

[shockie]

On the bright side, from my understanding, VeriSign can't raise rates every year in its 6 year contract ...

to my understanding they can raise it by 7% for four out of the next six years, and possibly more. off the top of my head, that means a possible 30% increase in registrations three years from now.

 

[Domagon]

Good point about VeriSign most likely front-loading the increases ... early as 2010, registrars could be paying nearly $8 per domain with registrants paying around $10.

Ron

 

[cache]

the cost of technology is always decreasing, (equipment etc). There is no
competation here.

Isn't it just following inflation though? Wages are increased / products and service costs are being increased.

Also, the US Dollar is performing very poorly at the moment and doesn't look like improving for the foreseeable future, so it was always going to happen.

 

[htmlindex]

So what's domain reg fee price hike all about?

More money in their pockets, simple as that

 

[SpongyBob]

On the bright side, from my understanding, VeriSign can't raise rates every year in its 6 year contract ...

Though despite that limitation, over the course of the next several years, their price could still potentially rise to around 30%+ more than now to nearly $8...

Which for most domainers would equate, assuming the max increases happen (which is very likely!), at the end of the 6 year contract, to a retail price of around $10.

Ah, I see.

In that case, looks like (unsurprisingly, knowing what a bunch of greedy b*st*rds they are) Verisign intend to exploit fully the rather cosy deal they got from ICANN. I hope you're right about them not being able to increase the price every year, else we could be looking at a 7% hike each year and something like $14 domains by the time their contract runs out.

Isn't it just following inflation though? Wages are increased / products and service costs are being increased.

Also, the US Dollar is performing very poorly at the moment and doesn't look like improving for the foreseeable future, so it was always going to happen.

No offense, but you sound like you've swallowed Verisign spin hook line and sinker. All the technology gets cheaper, management becomes more automated, etc. Just look at the hosting industry, where there's competition, and how much prices have been slashed in recent years. They should be cutting prices, not hiking them because they have a monopoly and a complicit regulator.