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Joel Disini, President & CEO of dot.PH, responds to our earlier discussion here last October entitled “Why dotPH is still expensive?“.

In his comment, left yesterday evening, he said:

Hi,

I just recently discovered this thread, and I thought I’d directly respond to the group. Hopefully, people are still willing to discuss this topic.

My understanding is that most of the readers here are Adsense/SEO people? If so, I’ll try to address my thoughts appropriately.

First of all, DotPH pricing at $35/year is the retail price. The wholesale price is a lot cheaper, and goes as low as $15/year, depending on your volume of registrations. This has been the case as far back as 2000, when very few ccTLDs were selling below the $35 level. The Registrar prices are located here:
http://www.domains.ph/PartnerApply.asp

As you can see, the discounts begin once you have at least 12 domains to register.

So it might make sense for some of you to join forces, and buy in bulk - so you can enjoy larger discounts - or work with one of our existing Registrars. We have over 150 Registrars - practically every ISP in the Philippines and Webhosting company is a Registrar. (Now whether they wish to pass on the discounts to you - that is entirely another matter).

If your need is to get lots of domains so that you can point them to your main website (so as to increase its Google rank), then perhaps we can discuss creating some price that favors the SEO community. If some of you recall, we actually gave a way 18+ character domains several years ago - for free. This way you can get domains with your desired keywords, then direct people to your main money site. Or you can monetize them with SEDO, DomainSponsor, or some similar domain monetizing company. We’ve also toyed with the option of lowering price for net.ph & org.ph - but we’d like to get more feedback first.

But if you are domainers and want to buy domains, hold, and sell them later, you might want to look at mail-only domains. These only cost $5/year and can be later updated to full functionality (once you pay $35/year). So this means you can speculate (if you wish) and grab all the domains that you think will be of value in the future. They you can sell them later at a profit.

I am currently at the ICANN conference in Portugal, and Tim Schumacher of SEDO tells me that the average resale price these days for domains is about 20k. That’s a pretty impressive amount. Naturally, ccTLD domains don’t sell that high - but once more and more Philippine businesses get online, you should find the aftermarket price for PH domains going up.

If you have ideas, please feel free to post comments on my blog at jed.i.ph (it is unmoderated). Or if you prefer, you can call/email us directly. (The contact details are here:

http://www.domains.ph/ContactUs.asp
.
This way, we can respond more quickly to your concerns.

He also wrote about it in his personal blog here.

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This is an ongoing discussion over at SEO Philippines Yahoogroups so I’m re-posting my answer there here.

Disclosure: I am an .PH reseller.

I have been meeting with the PH team for some time now and I have been somewhat discussing with them the idea of lowering the prices. I’ve also had talks with JJ Disini and he himself tells me that he’s talking to the older brother about slashing off the prices.

There are so many factors why the pricing has been stagnant for years. I’ve also asked them the total number of active PH domains and though I didn’t get an exact answer, my guesstimate was in the range of 125k to 150k.

First, PH is not the most expensive — .TV is $38, .JP is $99, .BE is $39, .AT is $79, .NZ is $69, .CC is $39. The CNO namespace is universal and the ccTLD is country specific, so we can’t really compare prices for the two considering the fact that volume of domains are way way apart. The best scale would be to compare PH pricing with other ccTLD pricing.

Second, supply and demand — will lowering the price assure increase in sales? That is, will cutting the price into 3 folds create enough demand to triple the sales volume (thereby maintaining gross revenue)? Remember, it is still a business. Take for example the local hosting industry. It’s really expensive compared to the rest in the US. Can we point to a local hosting company that can match the pricing of DreamHost, 1&1, Powweb, etc?

Third, target market — this is in conjunction with #2 actually. I was told a huge percentage of .PH domains are bought for branding and IP by big companies and corporations worldwide. These are in the tens of thousands of companies who want to claim ownership of their domain name before other squatters do. The logic goes like — if PH domain sells domains at $100, eBay, Microsoft will still buy the domain; same way that they’ll pay if the price was just $10. The question becomes, will all SMEs and individuals buy PH domains instead of a .COM despite these changes? There’s no assurance there.

Fourth, protecting the existing resellers. This I only realized when I became a reseller. Say Resellers get their PH domains at $25/year and sell them at $30 per year. It’s still lower than $70/2 years to entice customers to buy from the resellers and not directly from dotPH.

Lastly, and this one’s my theory, self-preservation. Look at Microsoft — it was able to maintain its dominance and success because it had something people needed and only Microsoft can provide. Has FOSS able to shift the market demand and pressured M$ to lower licensing fees? So, let’s ask ourselves that if we owned dotPH, would we still subscribe to the same reasoning against the monopoly that is dotPH? What company would want lower revenues, eh?

These are reasons given to me during our discussions.

Don’t get me wrong — I want the prices to go down too and I am constantly having discussions with them about this (although it may seem a futile effort).

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