VeriSign Jacks Up .com, .net Prices To the Max
se7en writes "VeriSign is jacking up prices for the .com and .net domains for the second year running, increasing both by the maximum 7% allowed under its exclusive contract with ICANN. 'Assuming that VeriSign continues the 7 percent rise each year (which seems reasonable given the company's history), registrars will be looking at $9.00 for .com domains by the time the current contract ends in 2012 — a 50 percent increase in six years.' Registrars have no choice but to pony up, and chances are they'll pass the pain on to customers."
I wonder if this will decrease the amount of spam sites that clutter up so many Google search results...
I suffer from attention surplus disorder.
Is there any reason Verisign wouldn't jack up prices by the max allowed in their contract?
[Fuck Beta]
o0t!
There's a very limited number of reasonable .com and .net domains out there. If they aren't worth USD $10 a year to you, maybe you should let someone else have a chance?
I think registration should be something like $100 one-time + $25/yr. Yeah, I'd spend a lot more, but it would be worth it to kill squatters.
How can I believe you when you tell me what I don't want to hear?
The United States is really big on competition. Everyone else has to compete. Why is this monopoly allowed to exist?
-- Even if a god did exist, why the fsck should I worship it?
That'll be what, 1 Euro by then?
Given the recent drop of the value of the dollar, that means that much of the rest of the world whose currency isn't based on the US dollar will see a 1% price drop, instead of a 8% price drop.
I am amazed that such a valuable commodity is so cheap still, especially when the low price only benefits those who purchase massive amounts of domains. I wish the prices were at least $20 a year.
http://blog.domaintools.com/2008/03/feel-like-paying-more/
Remember when domains finally dropped from the $100 starting point (for two years)? Yeah, $9 is nothing.
WOW!!! Only $9!!! That is 1/10 the price the last time I looked into buying a domain name. Maybe I should buy one before the rates go back up.
I dont understand- is this entry a joke? This is about as ground-breaking as "a local McDonald's increases $1 menu to $1.05 menu!" In other news, inflation was 8% last year!
I would love to pay just $9.00 for a registration fee. Try > $100 here for a .com.au :/
The dollar is dropping like a rock. If they are an international company, they probably have no choice. When did they make this contract? They may even be getting screwed.
I will be feared by some group of scaley documants with the desk lady for you shaving cauldrone.
...that domains used to cost $140 a year. We only DREAMED of $10 domains back in 1999.
I have a few domains, nothing serious, and i would not be unwilling to pay more under certain conditions. Mostly these would have to with transfer and the amount of time a registrar can sit on a domain without releasing it. I appreciate having a 30 day waiting period to repurchase a domain, but I have seen 90 days+ where the register is allowed to hold the domain hostage. Clearly this a revenue generating tactic, and if it is to end must be replaced with other revenue.
"She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
Why do we have TLDs anymore, anyway? Why can't I just register http://yourname/ ? Since their original intent is both broken (not all .coms are commercial etc) and obsolete (people just google for things anyway), why don't we just say that a domain is a string of alphanumeric characters terminated by a /
The contract with Verisign does not end in 2012.
ICANN granted to Verisign a perpetual right of renewal.
In other words, unless Verisign goes out and illegally clubs baby seals (and maybe even if they do) they get the right to renew the contract again and again and again and again...
Has ICANN ever bothered to consider the actual costs that Verisign incurs to deliver those domain name registrations? No.
It has been estimated that the amount may be as low as $0.02 per year. In which case ICANN has created a guaranteed profit to Verisign of about $420,000,000 eavery year - with you and me paying.
...you might have a low FICO score.
Step 1:monopoly
Step 2:????????
Step 3:Profit!
Seriously... is ANYONE really surprised that they didn't increase the price by the maximum allowed amount?
Wow, all of nine 9.0 dollars a year? And this is finincial hardship, or pain?
I would make domain registration 900/yr.
That should get rid of all those typo domains, and domain squatting.
The IT and open source monkeys don't need their own domain names, that's what sourceforge is for.
...somebody tell the GoDaddy girl that her tits are going to have to get bigger.
Dark Reflection
The contract is on the ICANN site. People should read it before making statements that aren't true. Verisign can not raise the fee every year, only four of the six years in a contract period. Look at the payments they need to make to ICANN: $1.5 million rising to $3 million a quarter over the contract. Look at the SLAs for .com and .net (5-100 milliseconds), 100% availability per year on some services or penalties. How many company's can provide that level of service for the millions or billions of queries they get a day, especially from the squatters that register hundreds of thousands of names a day and release them during the grace period. Verisign doesn't make any money from the squatters yet has to store and report on all of that data. If people think the business is such a cash cow and easy to do, why didn't they bid on the contract? They could be billionaires by now.
http://www.icann.org/tlds/agreements/net/
http://www.icann.org/tlds/agreements/com/
I am sorry to say it, but I just can not see how Microsoft can be called a monopoly, I am currently a open source user and am posting this comment from Mozilla Firefox running on Ubuntu. At the end of the day, there is choice there and if people want to, they can change their operating system and live without any commercial software, I have been doing this for the past few months and am generally having a good time. Now, if I want a .com name, I am FORCED to pay the extra, no questions asked.
There is clearly a monopoly here, but no one seems to care or do anything. Fine you can get other domain names, however I am sure that at least 80% (if not 99%) of people would classify the internet as ".com".
They're a friggin monopoly. give them a "maximum allowable increase", they have zero incentive to not 'achieve'. Every resller markets themselves and then comes home to poppa, the ecosystem is theirs.
(sigh)
Laugh while you can, monkey-boy!
That is what you get when you agree to an exclusive contract. Normally, the company asking for the exclusive gives good deals to obtain it. Exclusive is almost never a good option to the company giving it, and there needs to be some pretty good incentives to do so. Really Good. Like AT&T giving a portion of the iPhone sales to Apple good.
However, it seems to never work out that way with governments, or governmental agencies. They take up the "poop chute" by the company asking for the exclusive. After all, it's not their rear ends that is getting the treatment is it? Those deals really are not exclusive as much as they are "negotiated in a back room".
So I am not surprised at all. I would expect a company with leverage like that to keep raising the prices, and as often as possible. So if anybody wants to complain about that, then maybe we should start by getting rid of any exclusive contracts with ICANN.
Just my opinion....
Why is this news? This is a once a year payment, is it not? Even with a part time job averaging less than 15 hours a week I could afford a domain for myself. Unless you're buying thousands or millions of domains, this isn't really going to affect you...
:(){
There are too many domains. The Internet sucks! I want $100 a year like the old days and everything controlled by InterNIC!!
-=/\- Jizzbug -/\=-
http://cheapdomains.com.au/ does $38 for 2 years. I have mine there and they are perfectly legit, no hidden costs. Just register, enter your name servers (I use http://everydns.net/ and you are good to go.
You're breaking my balls here VeriSign, breaking my balls.
Those challenge-response mail systems don't solve the spam problem, they only move it away from the user. People who use (and) write this shite should be banned from the tubes.
Is possible to set up a working web address without going through ICANN?
Knowing Google's lust for data collection, the Soviet Union is still alive and well inside the psyche of Sergey Brin....
It's like the situation here in Sweden. The government is increasing the rent on all apartments to shorten the lines, but that will leave more people on the streets. Increasing the domain price may perhaps make the spammers think twice, but it will not stop them. It will instead affect honest users to the degree that they may not be able to pay for their domains.
Bad move.
I remember paying $75 for a domain back in 1997.
If you google for Verisign's slogan (the value of trust), what do you get?
http://www.lindacaroll.com/value-of-trust.html
That one comes up higher than Verisign's own page for me.
http://www.circleid.com/posts/the_value_of_trust_in_2007/
http://www.infinitumdesign.com/verisign.html
My own experience with Verisign's domain business comes way down the list:
http://www.scarydevil.com/~peter/io/vs/
The value of trust? That and $1.99 gets you a Doubleshot.
Do you seriously think shareholders can sue a company they own the shares on just because they think the company ought to have made more money than it did?
It is certainly possible for shareholders to sue for serious mismanagement of the company, but serious mismanagement doesn't mean just that the management made an error: it means that management did something pretty damn serious, like deliberately act in a way that screws shareholders over because of a conflict of interest. For example, some folks were talking about suing the management of Bear Stearns for agreeing to sell the company for $2/share, because they thought that the decision was very obviously not good for shareholders.
It takes very, very little argument for VeriSign to demonstrate that charging what they do now for domains is not obviously against the interests of shareholders. All they need to say is something along these lines: that they believe that the demand for domain names is elastic, so that higher prices would lead to less demand for domain names, less volume, and therefore, fewer revenues in the aggregate. They don't even have to be right about it.
Commencing on 1 January 2007, the Service Fee charged during a calendar year for each annual increment of a new and renewal domain name registration and for transferring a domain name registration from one ICANN-accredited registrar to another, shall not exceed the highest Service Fee charged during the preceding calendar year multiplied by 1.10.