Neustar, the operator of the .Biz domain registry, recently notified the International Corporations for Assigned Names and Numbers (ICANN) that it will raise the cost of the.Biz extension domain name registrations to $8.63.
Neustar’s .BIZ Hike – Will it Produce the Expected Revenue?
In order for people to reach a website, they have to type in an address, or an address has to appear in the search engines. This address consists of a name or number that is unique, followed by a.com, .net, .org, .edu, .biz, .info or other extension. This name and extension is associated to a particular registry and allows Internet servers to know where to find the address.
In the early days of the Internet these domain names were identified with a .com, .net, .org or an extension specific to a certain country. However, there came a point when finding the availability of a particular name became almost impossible. This led to intensive competition for a specific domain name, causing providers and businesses to sell specific domain names for exorbitant prices.
The .biz, .info, .mobi and .us domain extensions were later created to relieve some of this competition for domain names with the .com extension, each with a specific purpose. For instance:
- Biz extensions are for small businesses.
- Org are designed primarily for non-profit organizations.
- Edu extensions serve websites that focus on education.
- Mobi domains are for the mobile industry.
- US is the newest extension made for U.S. based websites.
What Does This Price Hike Mean?
While .com addresses have always been the preferred domain registry system, and the extension considered a top tiered system, it is also highly competitive and more expensive than the other registries. While a .com domain name typically comes at a price of up to $12, other similarly named domains registered as a .biz, .US, .info, .mobi or any of the other available system extensions costs substantially less. This makes these domain names attractive to website owners who need more than one domain name.
Website owners owning, 10, 20, 30 or more websites have previously found the lower price of .biz domains more appealing. But this new hike in price will raise the wholesale price by $.78, taking it to $8.63, which is comparable to the price of a first tier .com domain names. Neustar believes this increase will add to their revenue, and it may for existing domain names that are renewed by owners. However, it may also deter the sale of new domain names, as website owners may not consider the price worth paying, as the more conventional .com domain extension are available at comparable prices.