registries Verisign to increase .com prices

[Radu054]

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?

---

Related:

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

 

[Sutruk]

Guys, I hope all of you comment against the increase of the .com Registry price.

At least if you don't want to pay more and more every year. If you don't comment, then don't complain later about the price increase.

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

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

You just have to send an email to them.

And say that you are against the price increase.
I think this is the least we can do.

 

[Ryan3]

Please comment ASAP. They close tomorrow.

This helps you create a good comment.
https://www.internetcommerce.org/comment-com/

I have added two extra statements of my own in bold that you can also send.

I am a registrant of multiple .com domain names.
I am against the proposed price increase to .COM domains.
No one other than Verisign want increases in .COM prices.
The current rate of $7.85 is already far more than justified.
Verisign is merely your manager of the .COM Registry – it has no business dictating the price.
ICANN is supposed to govern the domain name system in the public interest.
Verisign already makes $1 billion in gross profit annually so the proposed .COM price increase is purely based on greed.
Other registries have said that they could run the .COM contract for much less.

 

[Ryan3]

Ask your friends to comment!
I asked a non-domainer friend (still a developer) and sent over my comment for him to copy and he did it!
Don't forget to tell them that comments close tomorrow.

 

[eternaldomains]

Just saw NP helping out as well (look for announcement at the top), thanks NP team!!!

Other registries have said that they could run the .COM contract for much less.

I'm wondering if its possible to initiate a lawsuit / class action lawsuit to prevent companies (like VRSN) and organizations (ike ICANN) from monopolizing (whatever they want to monopolize), or undo the evil policies that have been set......?

 

[Sutruk]

Verisign already makes $1 billion in gross profit annually so the proposed .COM price increase is purely based on greed.
Other registries have said that they could run the .COM contract for much less.

From https://investor.verisign.com/news-...ts-fourth-quarter-and-full-year-2018-results/

"For the year ended Dec. 31, 2018, Verisign reported revenue of $1.21 billion, up 4.3 percent from $1.17 billion in 2017. Verisign reported net income of $582 million and diluted EPS of $4.75 in 2018, compared to net income of $457 million and diluted EPS of $3.68 in 2017."

But they want more and more. Drunk of greed. They have the monopoly of the .com, but it's not enough to them.

I am sure there are many companies out there that would be quite happy to run the .com registry for less.

 

[Bob Hawkes]

The current wholesale (to registrar) cost of .com is $7.85 for registration or renewal. If we were to have 25 years of 7% pa increases, the wholesale cost for a .com registration would become $42.61 per year.

A domain investor with a 1% sell-through rate would need to increase prices per retail domain name sale by $3476 just to break even (compared to now) under this scenario. How will the retail market respond?

And the private equity group for .org are saying they will not increase .org by more than 10% per year. Currently the wholesale (to registrar) .org price for renewals is $9.93 ($7.93 registration). If we applied 25 years of 10% pa increases, that would become $107.59 at the end of the time period. Under the same 1% sell-through rates on average .org domain retail prices to end users would need to increase by $9766 per domain as a break even point.

I am definitely not saying every year will increase by these amounts, but it is important to realize what compounding will do.

Remember that the deadline is midnight UTC (note time zone) Feb 14 to get your comment in to ICANN re the proposed .com amended pricing.

It is encouraging to see so much of the domain industry working in concert on the pricing issue, with most registrars urging their clients to comment to ICANN. Make your voice heard.

Bob

 

[Bob Hawkes]

DNW just tweeted a link to this detailed brief on the .com price increases from Dechert LLP. Well worth reading for a detailed understanding of the issues involved, both in terms of the proposed price increases and other changes.

"The Internet community has rightly been concerned about the nature of ICANN’s relationship with Verisign for years now. As described above, Verisign’s control over the .COM gTLD gives it significant market power and leverage. Because of its legacy status and first-mover effects, .COM remains by far the most popular gTLD; it likely will continue to dominate the market for decades to come. And because Verisign’s domination of this critical resource will renew automatically for the foreseeable future, Verisign’s actions should be subject to heightened scrutiny. Instead, the proposed Amendment and accompanying LOI perversely grant Verisign more power with less oversight. "​

 

[Ryan3]

Here's Verisign (VRSN) on Yahoo Finance
https://finance.yahoo.com/quote/VRSN/financials?p=VRSN

You can see that their gross profit and net income both increased every year for the last 4 years while their total operating expenses have reduced each year for the last 3 years.
So they are already earning more while spending less before any price increases.

 

[CrazyOldGoat]

DNW just tweeted a link to this detailed brief on the .com price increases from Dechert LLP. Well worth reading for a detailed understanding of the issues involved, both in terms of the proposed price increases and other changes.

"The Internet community has rightly been concerned about the nature of ICANN’s relationship with Verisign for years now. As described above, Verisign’s control over the .COM gTLD gives it significant market power and leverage. Because of its legacy status and first-mover effects, .COM remains by far the most popular gTLD; it likely will continue to dominate the market for decades to come. And because Verisign’s domination of this critical resource will renew automatically for the foreseeable future, Verisign’s actions should be subject to heightened scrutiny. Instead, the proposed Amendment and accompanying LOI perversely grant Verisign more power with less oversight. "​

Honestly, we're lucky in a sense that .com hasn't significantly risen in price over time due to the market power and the demand for what is, by far, the most sought after and marketable domain extension in 99.9% of situations.

 

[Kai W.]

Guys, I hope all of you comment against the increase of the .com Registry price.

At least if you don't want to pay more and more every year. If you don't comment, then don't complain later about the price increase.

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

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

You just have to send an email to them.

And say that you are against the price increase.
I think this is the least we can do.

agree,Please don't hesitate to let ICANN hear us.

 

[Bob Hawkes]

Honestly, we're lucky in a sense that .com hasn't significantly risen in price over time due to the market power and the demand for what is

It is not that they choose not to raise the price, but that multiple US administrations kept the prices constant, though. I agree that demand could have supported a higher price, but remember that Verisign did not create .com so the argument that they should make even more profit from it has many opposed.
Bob

 

[werty]

I wonder how this will affect the largest portfolio holders like huge domains. Might end up actually helping the small guys in some way. Who knows...

 

[GeorgeK]

I just finished submitting my comments:

https://freespeech.com/2020/02/14/c...ed-amendment-3-to-the-com-registry-agreement/

I hope others will do the same.

 

[Sutruk]

Last chance to comment against the Registry .com price increase!

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

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

 

[Bob Hawkes]

I need renew soon then? When does price increase of .com start?

There needs to be six months advance notice given to registrars, and people will, if they choose, be allowed to register up to 10 years in advance at existing rates, as I understand it.
Bob

 

[Domainating]

This is just not good. Not good for Domainers, not good for business, not even good for hosting. Such an increase puts a high strain on small business, entrepreneurs, freelancers, designers and developers. Even if you only have one website, you are covering your ass by registering the main domain, Trademarks, Service Marks, brands, even ideas to develop further down the road.

Verisign is simply gouging us all, registrars, hosts, resellers, domainers, developers, anyone trying to make a living and keep their nose clean, but instead it's bloodied by corporate greed.

So disappointing.

 

[.X.]

People should focus their attention on very expensive .com registers like Godaddy , $17.98 a .com reg, yes, you can purchase a discount for $89 a year to provide you a .com registration cost of $8.88 a . Com, therefore possibly pitting you into keeping your complete portfolio there.

this is a very minimal price increase for .com, if this small increase actually hurts anyone, they need to fold. Verisign has paid the cost of doing business for domainers for a very long time, they just want a little back now.

 

[Daniel Owens]

People should focus their attention on very expensive .com registers like Godaddy , $17.98 a .com reg, yes, you can purchase a discount for $89 a year to provide you a .com registration cost of $8.88 a . Com, therefore possibly pitting you into keeping your complete portfolio there.

this is a very minimal price increase for .com, if this small increase actually hurts anyone, they need to fold. Verisign has paid the cost of doing business for domainers for a very long time, they just want a little back now.

Luckily, most domains make so much a year the price increase is unlikely to affect them much. I'm a little smaller time and own some person domains that I have to renew for projects and those are the ones I most need to renew.