question Why are COM renewals so high?

[richtrading]

Anyone know why Registrars charge roughly $8.50 for COM renewals? GoDaddy shows ICANN fee of $0.18, makes me wonder why is the rest so high?

It doesn't really cost that much to hold a domain does it?

 

[Alexaa]

Check prices from 1995-2000 period and tell again

 

[Jurgen Wolf]

Base fee is agreed between Verisign (.com/.net Registry) and ICANN.
Registrars can only add some margin on top.

 

[Bob Hawkes]

The wholesale price Verisign charges registrars is $7.85. ICANN adds $0.18 so the registrar is paying $8.03 for the renewal. They need to add their markup to cover payment, processing, admin. costs, so most charge about $10. Occasionally special deals. The biggest part of your costs go to Verisign.
Bob

 

[Kate]

But the real cost for the registry (Verisign) should be much closer to $0.18 than $7.85.

 

[richtrading]

But the real cost for the registry (Verisign) should be much closer to $0.18 than $7.85.

$7.85 is a lot! There are 252M COM domains registered.. so they're collecting $1.978Bn USD per year how are Verisign getting away with this? I doubt they have costs of $2Bn per year.

 

[Kate]

252M ? More like 140M.
https://www.verisign.com/en_US/channel-resources/domain-registry-products/zone-file/index.xhtml

But yes it's a nice cash machine they have.

 

[richtrading]

252M ? More like 140M.
https://www.verisign.com/en_US/channel-resources/domain-registry-products/zone-file/index.xhtml

But yes it's a nice cash machine they have.

Well spotted, sorry. So they get $1.1Bn !

 

[Argentum]

If Verisign cuts prices at 50% for example domaining will boom!

 

[.X.]

it does cost that much to hold a domain, but $8.50 a name is a pretty cheap price to pay if you value the name, although x a lot of names does add up, that is the cost of domaining.

 

[Bob Hawkes]

it does cost that much to hold a domain, but $8.50 a name is a pretty cheap price to pay if you value the name, although x a lot of names does add up, that is the cost of domaining.

I agree that if you are an end user with a few domains $9 or so is not much per year per domain.

Of course a domainer typically sells 1 or 2 domains per 100 in any one year, so on the 100 it is $900, much more substantial.

Bob

 

[.X.]

I agree that if you are an end user with a few domains $9 or so is not much per year per domain.

Of course a domainer typically sells 1 or 2 domains per 100 in any one year, so on the 100 it is $900, much more substantial.

Bob

I see it no different than any other investment, Gold, stocks and bonds, IRA and etc. expect to have to let your investments mature, If a person doesn't have the money for maturity, they shouldn't invest in more than they can afford. IMO

Although it very easy to do with domain names, buying wisely and not on impulse is a better solution to holding their portfolio without having to take big losses on dropping names.IMO

 

[creataweb]

Because Verisign = Greed

 

[Fancy.domains]

Personally, I think the price of .com is reasonable, simply to avoid crazy mass registrations.

Look at ngTLDs that have, more or less, given away names (like .xyz and .loan). Millions of worthless names have been registered, and the majority will be dropped, as the renewal fee is much higher.

 

[Jurgen Wolf]

Long but informative article: http://www.circleid.com/posts/20181112_verisigns_attempt_to_increase_fees_unjustified_despite/

 

[Nick]

Anyone know why Registrars charge roughly $8.50 for COM renewals?

I'm really hoping your gripe isn't actually with registrars and I suggest you edit your misleading post. Otherwise, please advise what an appropriate retail price for a registrar business to charge would be, in your opinion.

 

[richtrading]

I'm really hoping your gripe isn't actually with registrars and I suggest you edit your misleading post. Otherwise, please advise what an appropriate retail price for a registrar business to charge would be, in your opinion.

Question was very clear. Read the thread, and you'll see the breakdown is actually Verisign charges.

 

[Nick]

Question was very clear. Read the thread, and you'll see the breakdown is actually Verisign charges.

Question is clear but now you're citing "Verisign", which is a registry - not a registrar. Therefore, it's unclear. Your original post makes it seem like registrars are price gouging. It's like asking "why are gas stations charging so much for gas" .

Also, curious to know, did you sign the petition to stop .COM price increases?

 

[jmcc]

Anyone know why Registrars charge roughly $8.50 for COM renewals? GoDaddy shows ICANN fee of $0.18, makes me wonder why is the rest so high?

It doesn't really cost that much to hold a domain does it?

It is a business. Registrars have to cover their costs and make a profit. Godaddy is the largest gTLD registrar on the web and has an economy of scale that most smaller registrars do not have. Godaddy also has relatively good renewal rates (% of new domain names that renew). As a gTLD, the first year renewal rate for .COM is around 57% with a blended (year one and subsequent years) renewal rate of around 72%. Some registrars have better renewal rates than Godaddy (some are up around 70% for first year renewals) but they generally have higher registration and renewal fees for .COM and other gTLDs. A higher registration fee and renewal fee for a gTLD can actually increase retention but it also reduces the numbers of domain names registered.

Regards...jmcc

 

[Jasonn]

$7.85 is a lot! There are 252M COM domains registered.. so they're collecting $1.978Bn USD per year how are Verisign getting away with this? I doubt they have costs of $2Bn per year.

get ready to pay more. verisign got the ok to increase their prices in the next few years that will look like this

• 2019: $7.85
• 2020: $7.85
• 2021: $8.40
• 2022: $8.99
• 2023: $9.62
• 2024: $10.29

 

[IMEZI]

get ready to pay more. verisign got the ok to increase their prices in the next few years that will look like this

• 2019: $7.85
• 2020: $7.85
• 2021: $8.40
• 2022: $8.99
• 2023: $9.62
• 2024: $10.29

even more reasons to do domaining business now and get retired before 2024 LOL