Verisign to increase .com prices

Not sure if this was posted before, but I just received an email from Dynadot that .com prices might increase due to Verisign increasing registration and renewal prices to all registrars.

https://www.icann.org/public-comments/com-amendment-3-2020-01-03-en

The amendment states that the price charged by Verisign for registrars will be maximum $10.26 ( until 2026) - with current price being $7.85

How will this impact domaining?

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Related:

• https://www.internetcommerce.org/comment-com/

 

Add years to your best names before the increase. I think depending on the amount of the increase this will effect many domainers who carry large portfolios. We might all have to be alot more selective on what we keep.

 

.Com price goes up 7% annually, through 2024

If Verisign exercises their right to 7%

2024 .com would still less than half .co today!

Samer

 

For once, happy with a small portfolio.

Not domainer friendly, like most things in the industry.

 

im increasing all my bins by $2 as of tomorrow.
take this verisign!

 

I wonder if there is any explanation for the increase other than greed. I don't buy into the "increasing operation costs" because as the number of domains goes up, the income goes up, even if the pricing stays the same.

 

The 4 increases of 7% compounded come out to 31% increase over 6 yr of proposed amendment.

It is good that 6 months notice must be given to registrars, and domainers are allowed to renew up to 10 yr in advance.

Even with the increase to $10.26 wholesale as @Samer notes less than most country code and many new gTLD.

Verisign is already highly profitable, is part of reason so many opposed this.

If one assumes a 1% sell-through rate logically every $1 increase in renewal should increase retail prices by $100.

Some may, as noted, react by holding smaller portfolios.

Bob

 

Yes folks, I've always knew this was coming. The free wheeling "for the collective good" days of the early internet is over...When greed and greedy capitalists get involved...YOU LOSE if you keep playing their game.

Those with large (thousands....tens of thousands) portfolios BEWARE. I am sure you've been coasting along and even making a profit...but at some point, the math is not gonna add up. It may be years from now, but it WILL eventually be BAD FOR YOU.

And don't think this price increase til 2026 is the end of it. Oh boy BOYS. It's JUST THE BEGINNING. In fact, it sets a precedent that will only lead to unprecedented increases.

>>>>Sit down and make a list of your most valuable domains and renew them 10 years out.<<<<

For all the others, each year do a cost/benefit analysis of chance of selling versus dropping and being free of the burden.

In the end, it's the registry and the registrars that will WIN WIN WIN.

Don't fall for the "in the interest of being transparent" CRAP and the "we hate to increase prices but our hands are tied" line.

It's one big game of collusion and unfortunately, YOU, the domain investor, will lose if you don't play the game right.

 

Most (me included) will probably "react" be dropping some crap domains for others to catch and catching some crap domains that others dropped.

 

When the 10 year contract was negotiated,
they were given the right to increase prices last 4 years by 7% per annum. They were prevented increase prices fist 6 years.

They waited patiently 6 years, b4 this came;
best article written 2016, describes contract;

https://www.theregister.co.uk/2016/07/01/verisign_retains_dotcom_cash_cow_until_2024/

 

my point is, and far be it from me to defend Verisign’s mother of all cash cow contracts

Does it matter why price increases coming,
7% reasonable compared to +xxxx% ngtld

 

There had been a price freeze under previous US administrations. Verisign argued there should be no cap at all since other segments of industry not regulated, and most other TLDs not capped. ICA argued that the actual cost of operating registry was far less than wholesale costs already paid, and a competitive bid process would have resulted in much lower costs. I suppose the 4 yr out of 6 of 7% maximum pa could be considered a compromise.
Bob

 

Folks, it's the G. Capital. Gee. Gee as in GREED.

You DO KNOW that your "ownership" of a domain is basically an entry in a big database right? RIGHT?!

It's costs very LITTLE to maintain this database compared to the amount of $$$ Verisign is bringing in now (even before the price increases).

Let's see...GREED? Bonuses for employees? "Business" Trips to the Bahamas? Hiring more employees so they can get hook up and gorge on the monopolistic income stream?

Basically, they got it locked up good. I actually envy them. They are like the government. Pay your annual domain TAX or we seize your property.

 

It’s not really going to change anything, the mark up is realistic as .com has been at the same price a very long time. I have expected them to raise .com pricing for years now, so no biggie to me, I will give myself a raise or something to compensate.

 

Its all about the money money

 

It seems that they've made it very hard to submit comments unless you have a smartphone with email app. Tried Chrome and Firefox, Desktop. An obviously malicious attempt to ensure a low comment count. I've never seen any website making messages harder to send than this. They make it look like you're able to comment when in fact they're not. Think more than a million times before believing that the price increase is justifiable.

Does anyone have the direct email address for this?

 

It's already a forgone conclusion brother. Don't even waste your time trying to comment. It's not gonna change a thing.

Your best course of action is to shed your portfolio of worthless domains and only hold onto the select few that actually have value. That way, you won't take such a bad hit from the inevitable and continual price increases as the years pass.

Remember, they have a monopoly. That's what happens when competition is not available. You get unfettered GREED.

 

Verisign is in the enviable position of a) already having tremendous operational leverage; b) seeing that leverage grow as a function of irrepressible demand; c) being able to further raise prices without stifling demand. It's such a sweetheart deal that I understand domainers' discomfiture, since they enjoy none of these advantages.

None of us can be Verisign, but we can focus on holding desirable names and put on a hedge by holding Verisign stock. I remain sanguine.

 

Not a direct answer to your question, as far as I know you need to use form, but in this post @bmugford provides links to two ways to submit input, plus his own submitted letter which is an excellent example of some of the points.

Bob

 

Q4 2019 Verisign Earnings Conference Call
Audio (MP3) 30min

 

The Matthew effect is about to appear, more people will chase mobile domains, and brand domains and non-keyword domains will drop.

 

@HappyW , I am interested in understanding what the Matthew effect is - I am not sure what you mean, but it sounds interesting.

 

I googled this.
The Matthew Effect is social phenomenon often linked to the idea that the rich get richer and the poor get poorer. In essence, this refers to a common concept that those who already have status are often placed in situations where they gain more, and those that do not have status typically struggle to achieve more.

 

You can understand it as: an extreme phenomenon. Generic words will become more expensive as people improve their portfolios. And more and more common words will drop because people will reduce their portfolio costs.IMO

 

does that not mean we can increase our selling price as well? We are thinking like pennypinching misers instead of economist.