Verisign is greedy once more: .com and .net fees go up

[mjreine]

Thu Mar 27, 4:40 PM ET

(Reuters) - Internet services company VeriSign Inc said registry fees for .com and .net domain names would increase as per its agreements with the Internet Corporation for Assigned Names and Numbers (ICANN), effective October 1.
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VeriSign said the registry fees for .com and .net domain names will increase to $6.86 and $4.23 from $6.42 and $3.85, respectively.

(Reporting by Esha Dey in Bangalore; Editing by Anil D'Silva)



SOURCE:
http://news.yahoo.com/s/nm/20080327/wr_nm/verisign_dc;_ylt=Aqu3FBpL1sq2RANNEuYGOYcjtBAF

 

[scizza]

This isnt that shocking. There is something called 'Cost of Living Index'.

Examples:

If you are working at a job for a period of time are you going to ask for a raise? Salaries increase because the cost of living go up.

When you rent a an apartment or retail store, your rent goes up each year.

I dont see how the annual cost of domain renewals is much different. We can just hope that the increases arent rediculous.

Thoughts?

 

[Gerry]

Yes, my domains are enjoying a healthier lifestyle thanks to the "cost of living index" adjustments.

Do you really think that with 73 million new domains registered last year that there is a need for cost of living adjustments?

 

[draggar]

YDo you really think that with 73 million new domains registered last year that there is a need for cost of living adjustments?

Sadly, yes. More domains being registered means more resources needed to manage all of those domains plus all the extra accounts from them. While they are making more money with more domains, the cost of their infrastructure is going up for the same reason, their bandwidth, maintenance on their equipment, their rent, their insurance, their electric bill, and so on (plus their staff's pay raises and new hires).

It's a vicious cycle.

 

[Gerry]

Sadly, yes. More domains being registered means more resources needed to manage all of those domains plus all the extra accounts from them.

It's a vicious cycle.

Sorry, but no way can I ever agree with this assessment.

An immediate 7% increase was announced with VeriSign taking over the handling of handling of the .net and .com registries.

VeriSign last fall announced it was looking to sell off its other businesses and enterprises as managing the the registry was by far the most profitable endeavor they had ever been in. They wanted to focus full attention on the sector of business.

The only vicious cycle I have seen is consistent inaction to enforce all the bogus activity going on in the registrar industry and ICANN and VeriSign turning their back.

Nearly a 9% increase coming up for a total of 16% increase in about a year.

Please, don't anyone even attempt to convince me that this is a knee-jerk reaction to economic conditions.

 

[Theo]

Surprised?

Don't forget how this administration forced ICANN to retract its approval of the .xxx namespace, citing moral reasons.

 

[accent]

Not surprised.

Disgusted.

Most business are holding off price hikes due to the recession. Verisign sees elastic demand and pushes the max. ICANN has already permitted them another raise next year, then they will have to justify somehow raises for the next two years.

74 million .coms X $6.86 (minus the 20 cent fee, of course) == megayachts for Verisign. Don't give me that increased costs cr@p - they have to keep the records of what has sold, that is all - and Registerfly showed they were not even doing that properly.

 

[Theo]

Read my latest blog entry about a different approach to domains and pennies.

 

[Gerry]

Not surprised.

Disgusted.

Most business are holding off price hikes due to the recession. Verisign sees elastic demand and pushes the max. ICANN has already permitted them another raise next year, then they will have to justify somehow raises for the next two years.

74 million .coms X $6.86 (minus the 20 cent fee, of course) == megayachts for Verisign. Don't give me that increased costs cr@p - they have to keep the records of what has sold, that is all - and Registerfly showed they were not even doing that properly.

Not to mention there are no alternatives when paying fees for .com or .net.

You want it, you pay it. End of discussion.

You and I have no choice and they know it. Hell, increase by 25% annually. Claim whatever they want to claim.

We're not only talking the new regs but the renewals.

Yup, economic conditions.

Just as likely as ICANN moving world headquarters to Switzerland for the scenery.

 

[socalboy]

Short domains. Long VRSN.

 

[tas38]

And watch the registrar's will add their rise at their end as well, and why not people buying them all up, keep rising the prices to sales or auctions slow down.

 

[dvdrip]

Increase?
They should decrease prices! Everything related to what they do is getting cheaper every year. Bandwidth, computers and software is cheaper than ever before.
This is disgusting!

 

[a2zdomain.net]

Verisign knows that even if everyboby complains about the price increase, you still have no choice. Will anyone because of the price increase stop buying .com? very unlikely. Even if Verisign increase fee to USD10. It will not have much effect on the registration numbers.

 

[incka]

The registaries should be run by non profit organisations that don't take a profit - not Verisign or any other company. There accounts and predictions should be open for all to see whenever they ask for a price increase.

 

[mkellerman]

Clearly this is a rip off. Why don't they offshre the registry to India or China?

 

[Theo]

Clearly this is a rip off. Why don't they offshre the registry to India or China?

The registry has to stay within the US for obvious political reasons.

 

[dvdrip]

And lose all that money?
They probably have a profit of $5.00+ for each domain.

 

[H2FC]

This increase was all pre-planned and approved by The Commerce Department and ICANN early last year. The registrars raised their prices last year and they are allowed to raise them another 3 times within the next 5 years.....nothing we can do about it that I'm aware of.

Well....not quite nothing...I've been registering some of my best domains for longer periods of time to take advantage of the prices before they go up.

 

[Theo]

Well....not quite nothing...I've been registering some of my best domains for longer periods of time to take advantage of the prices before they go up.

Smart move Also remember, renewal fees are expenses once you incorporate.

 

[H2FC]

Smart move Also remember, renewal fees are expenses once you incorporate.

They can also be used to offset your PPC earnings...