While our recent discussion over the expensive ccTLD (.PH) is still fresh, let me point you to another development on the upcoming price increase in the CNO name space. Frank Schilling has some juicy backgrounder on why ICANN has approved the Verisign price hike.
Remember, the 7% price increase this October is just the start. The price hike will most probably continue annually until 2012 or a 31% overall increase in the next 5 years, when compounded annually.
Expect all most Registrars to pass this increase on to all their customers soon. Marc told me during our podcast (watch out for Episode 5 of the BoBCast) that this is actually good and somehow I agree on some of his points.
- There are no more good .COM names left; it’s a crowded space already.
- A more expensive .COM will make it harder for domaineers to maintain their ROI. That will force them to release those grabbed domains that aren’t performing well.
- This will take the focus off of the CNO namespace and give way to other alternative domain extensions, gTLDs and ccTLDs alike, to get some exposure and sales.
So, assuming that .COM price was brought back to $35, the same price as the current .COM.PH, will people start buying the latter instead? I think so but it’s just a hunch.
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99% of domains owned by domainers will be unaffected. They make at least $10 *today*. So as long as the margin is there, they will keep it. By 2012, with increased targeting and PPC costs, their margin will still be above the registration cost.
People who cite the two most comment ‘good’ reasons for the .com price going up (it used to be $100 and this will drive domainers out of business) seriously have no clue how much it costs to run a registry (try 14 cents PER domain) and have no clue how much money domainers make (the semi-good domains make $100+ a year, this won’t even phase them).
Why don’t we try a new game people – stop apologizing and defending a monopoly abusing its power to make more and more money.
quoted
* A more expensive .COM will make it harder for domaineers to maintain their ROI. That will force them to release those grabbed domains that aren’t performing well.
* This will take the focus off of the CNO namespace and give way to other alternative domain extensions, gTLDs and ccTLDs alike, to get some exposure and sales.
So, assuming that .COM price was brought back to $35, the same price as the current .COM.PH, will people start buying the latter instead? I think so but it’s just a hunch.
end-of-quote
Maybe. Maybe not. The small domaineers will surely drop-out, but the bigger ones won’t. And ccTLDs won’t benefit from this either, but the regional TLDs will. Example, .ASIA, I’d rather buy .ASIA than buy .PH. There is more value to .ASIA than .PH, .SG, .MY, etc.
We’re already entered the new generation wherein “unification” or “ONE COMMUNITY” has more weight than individualism or protectionism.
I’d rather invest on the future than invest in something that is “of the past”.
we need domains 2.0
I’d rather buy a .ASIA than .PH as well.
When .EU came out, several ccTLDs in Europe dropped their prices, some (.BE) even gave it away for free.
@Jeffrey, that’s an interesting news. Will .PH drop down once .ASIA is available to the masses? Hmm, that’s something to watch and blog about.
I myself is lining up for .ASIA, I’m trying to get a few TMs approved so I can join the .ASIA sunrise registrations.
I’m interested in what Jeffrey said, too. .asia doesn’t appeal to me much, though. I’d rather have a .name or keep my .com unless the .ph really gets cheaper. Hmm… Do any of you suggest I pay for my .com domain now to last a long time (5+ years) before it gets more expensive since I plan to keep it anyway?
With an estimate of 65 Million .com domains registered, this is really a quick additional revenue of $27 Million per year for Verisign.
Now, regarding the .com.ph issue, i think before the .com reaches the $35 per year mark, .com.ph will be at the rate of $70 per year.
This is why monopoly is bad!
When will StephenCuyos.com be renewed?
real domain investors are not worried about this price increase why check the domain sales news.
I don’t forsee PH prices rising in response to COM prices rising.
I’ve also posted a response to some of the questions raised by various commenters here.