Dot Net Crashes through 6M

[Rubber Duck]

Owners of .net Web addresses may face higher registry fees in the future--but not until 2007.
http://news.com.com/2102-1030_3-5780400.html?tag=st.util.print

The Internet Corporation for Assigned Names and Numbers, the nonprofit organization responsible for Internet addresses, quietly agreed to lift wholesale price restrictions on .net registry fees last month when it renewed a contract with VeriSign to run the master database for .net domain names.

Buried in the fine print, the fact has escaped notice until recently. Over the past several days, news of the change has traveled around the Web.

"(It's) a move that may signal ICANN's intent to get out of the business of regulating domain name pricing," noted Internet services firm Netcraft.

ICANN used to cap .net domain fees at either $6 or $4.25, depending on the type of address. Under the new, six-year VeriSign contract, the cap is now $4.25 and that cap will remain in effect until Dec. 31, 2006, after which time all price restrictions expire.

A VeriSign spokesman told Computer Business Review that it's unlikely to raise prices, and would do it only to invest in its infrastructure. The master-registrar has agreed to give six months' notice in advance of any price changes, Netcraft noted.

Netcraft said prices are likely to remain stable because the domain-name market is very competitive. Domain names are practically given away as part of Web hosting packages, the group noted.

Others were less certain. "I'm not yet sure whether it's a change for the good or the bad," wrote Bret Fausett in his Lextext blog. "On the one hand, it gets ICANN out of the messy, non-"technical coordination" business of price control. On the other, will I be able to afford to renew my .net domain names after 2007?"

The $6 price cap will still apply to the more popular .com registry, which VeriSign also controls. That contract expires in November 2007.

Thanks, for that Radstar. Very interesting.

Ultimately, however, price will to some degree be determined by market forces.

It is difficult to see dot net being more expensive than dot com, unless buyers perceive that they are getting greater value. It could happen as the quality of dot net keywords still available is higher than that for dot com. However, dot net has struggled to get the same level of recognition in the past.

If end buyers want dot net badly enough, then of course a small premium will probably not deter them, as many are still prepared to pay Network Solution's extortionate prices, whilst much better value is available from other registrars. The ensueing debate will inevitably have an impact on pricing structure for the whole market and will increase competition between registrars, even if exploitation remains at registry level.

Personally, I think Verisign is more likely to try to ramp up pricing for dot com, which would have a large impact on its bottom line, rather than killing off dot net by implementing uncommercial practices, thereby damaging much future growth potential for only a modest return and causing political damage that could affect the renewal of the dot com contract.

Best Regards
Dave Wrixon

 

[Theo]

Nothing stops the registry from raising the prices tenfold. Absolutely nothing.

 

[Rubber Duck]

Nothing stops the registry from raising the prices tenfold. Absolutely nothing.

Except economic fundamentals. The reason a lot of us are not keen on ccTLDs is that in comparison to dot com they are so bloody expensive.

If verisign start charging $50 dollars then even dot jp starts to look cheap. Dot US would certainly take off and even dot biz might come off life support!

Best Regards
Dave Wrixon

 

[Theo]

But the .com is king. And if they decide to raise the prices, would you prefer to go cheap for a domain that ends up in .jp?

 

[Rubber Duck]

But the .com is king. And if they decide to raise the prices, would you prefer to go cheap for a domain that ends up in .jp?

Sorry, your kidding yourself. There are hundreds of thousands of parked dot coms that earning revenue that would become unviable at those kind of prices. Dot com is king but only because it is so in peoples minds. If dot com went over $20 at the registry the size of the register would shrink by about 20M. Then it really would be dot bomb!

Dot .jp is very successful although it the most expensive viable registry on the planet. Many Japanese use dot com because it is cheap! Dot com is nothing more than a brand and brands come and go. I think it will be around a long time, but only if the pricing structure is maintenained at sustainable levels.

Best Regards
Dave Wrixon

 

[Theo]

If a domain is not making $100 /year it might as well cease to exist. The reason domains get registered is not solely for monetization - most are developed for various other purposes. In fact, parking of domains is probably less than 10% of the total registrations.

 

[stuff]

If dot com went over $20 at the registry the size of the register would shrink by about 20M. Then it really would be dot bomb!

Please don`t make me laught!! dot com is the king and it will stay it for long time, end-users already pay more then $20 for a year registration, even $40.

 

[Rubber Duck]

If a domain is not making $100 /year it might as well cease to exist. The reason domains get registered is not solely for monetization - most are developed for various other purposes. In fact, parking of domains is probably less than 10% of the total registrations.

Well, those might be your criteria but 50% or more the dot com that are registered wouldn't make that! Any domain get can be developed, I run a site on a dot biz extension and get to the top of google on half a dozen keywords. Its certainly not essential to have a dot com.

Best Reards
Dave Wrixon

Please don`t make me laught!! dot com is the king and it will stay it for long time, end-users already pay more then $20 for a year registration, even $40.

Well being British we know a bit about kings. They are usually undistinguished ordinary mortals. They come and go! The king is dead, long live the king!

 

[Theo]

I run a site on a dot biz extension and get to the top of google on half a dozen keywords. Its certainly not essential to have a dot com.

I bet the .com owner loves the type-ins they're getting.

 

[stuff]

I bet the .com owner loves the type-ins they're getting.

well said.
Or maybe its not registered yet, let me know, I will take it.
If its US based site, You will lose at least %15-%25 off Your visitors to the .com version

 

[Rubber Duck]

I bet the .com owner loves the type-ins they're getting.

Well, I tried to pick up the dot com when it dropped but Snapnames was obviously on the decline at the time. Have tried to buy it since, but not worth the asking price. Don't seem to be any other offers on it, so I am just waiting my time.

Finding out why I missed out got me into this business, so a useful if sometimes expensive lesson!

 

[seeker]

not everything is about traffic and losing traffic etc...etc...etc...
Of course .com is king.
BUT a well developed site with good keywords is not something to look down on.
when you run out of good keywords in the .com namespace, you do as well as u can with what u can.

 

[stuff]

not everything is about traffic and losing traffic etc...etc...etc...

But what about is it then? If You don`t care about traffic, then You can always develop .cc, .ws

 

[seeker]

But what about is it then? If You don`t care about traffic, then You can always develop .cc, .ws

what is it about???
if you cant get the .com, you try to get the next best thing.
u try .net, you try .info, or whatever makes sense to you.

assuming you just have to have those keywords, yes, you can even use .in

what is it about?
SEO, search engine placement.

what is it about?
build the thing good enough, and the traffic that goes elsewhere will see the difference in design ang go back to the by now brandable .ws, .in or anything.

what is it about?
lack of choice in .com and choice elsewhere.

 

[Rubber Duck]

not everything is about traffic and losing traffic etc...etc...etc...
Of course .com is king.
BUT a well developed site with good keywords is not something to look down on.
when you run out of good keywords in the .com namespace, you do as well as u can with what u can.

I never suggested that dot com was not what you should be aiming for, but to suggest that most people will endlessly accept highly inflated prices for a domain extension is almost certainly naive. Dot com was obviousy first, but it is also easy to trade and has always been competitively priced. It seems doubtful that the dot com extension can continue growing at current rates with ever more dubious keyword and also cope with a huge hike in price. It is possible that Verisign could get away with $10 per domain, but anything North of that would have a severe impact. The dot net registry would be even more sensitive to any price hikes.

Just as mortguage rates increases slow house prices, higher registration fees would no doubt lead to a decrease in new registrations and even substantial drops in renewal rates. To think otherwise, suggests that you are in complete denial of market dynamics. When, that happens a crash normally ensues.

I cannot see Verisign attempting to make more than modest increases in charges, especially as that would eventually almost certainly loose them control of the registry.

Best Regards
Dave Wrixon

 

[Theo]

Why is domain parking a booming business? Because people type "whatevername.com"
The leftover traffic from other TLD's is only a side-effect, e.g. previously active and expired domains, viral marketing etc.

 

[stuff]

what is it about???
if you cant get the .com, you try to get the next best thing.
u try .net, you try .info, or whatever makes sense to you.

That I don`t agree.
If I can`t get the .com I wanted - I would go for the next .com, not .net etc etc

 

[seeker]

That I don`t agree.
If I can`t get the .com I wanted - I would go for the next .com, not .net etc etc

well it seems we do agree.
what I am saying is:
when the viable options are exhausted (all .com variations that dont have 3 hyphes and arent 30 chars long are taken), I go for a nice keyword other extension.
then i develop.
but then again, I may be wrong.
I guess archive.org is losing soooooo much traffic to archive.com
lol

and thats just 1 example.
I agree .com is king.
but If I cant get the king, I'll settle for the queen, the knight, the prince, and the princes

 

[Theo]

Archive.com is owned by Elequa - he seems to know what he's doing!

 

[seeker]

guys, we seem to agree.
.com is the best, and the second best, and the third best.
AFTER that, some keywords will do very good at search engines, and people will RFEMEMBER the extension.
even a weird extension like .sc
I am sure Elequa knows what he is doing, but so does name intelligence with whois.sc