May28

Verisign Price Increase

Under its 6 year contract with ICANN, VeriSign, the registry for .com and .net domain names, is allowed to increase the fees it charges registrars by up to 7% a year.

VeriSign is allowed to do this on up to four occasions and has done so twice already. Earlier this year, VeriSign announced a third increase will take place on July 1st 2010.

The VeriSign cost prices are summarised below:

2006 prices

(when contract signed)

Current Prices As of 1st July 2010
.com $6.00 $6.86 $7.34
.net $4.25 $4.98 $5.40

* In addition to the fees above, Resell.biz is also required to pay a fee to ICANN of $0.18 per domain year.

With regret, from 1st July, 2010 Resell.biz will adjust its prices inline with this increase:

Current Prices 1st July 2010
Tier 1 Tier 2 Tier 1 Tier 2
.com $7.79 $7.25 $8.27 $7.73
.net $7.49 $6.49 $7.91 $6.91

The prices above will apply to all new registrations and renewals. You can avoid this increase by renewing your domain names before June 30th 2010.

Tom

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15 Comments

15 Responses to “Verisign Price Increase”

  • AnouarMay 28th, 2010 at 4:02 pm

    This Is the second time in 1 year resell.biz has increased the prices !!! from 6.95 to 7.25 to 7.73 !!!

  • TomMay 28th, 2010 at 4:36 pm

    Thanks for your message & I understand your frustrations, this is not something we wanted to do.

    With previous registry increases we tried to avoid passing the increases onto our customers. But after years of holding back we eventually needed to rebalance our pricing structure.

  • MehediMay 29th, 2010 at 11:50 pm

    this is very very bad. what will we do now ? we already sell sub reseller in low price, then how can we manage them ?

    3 times price change … its not fare !!!!!!!!!!!!!!!

  • TomMay 30th, 2010 at 8:26 am

    @Yohanes – under the terms of its ICANN contract Verisign has the exclusive right to manage the .com registry, and charges the same fee’s to all registrars.
    – many registrars (GoDaddy, eNom, Tucows etc) have already announced they will be increasing their prices on 1st July. & given the tight margins in our industry, I expect more will follow suit.

    @Mehedi – unfortunately as a domain seller, like us you’re faced with two options: try to swallow the price increase, or pass on the increase to your end customers. Ultimately it depends on your margins & business model ..

    @John – I doubt Verisign will take positive action as they have an effective monopoly on the .com extension & are likely to put in another 7% price-increase next year. It’ll be interesting to see what will happen when ICANN come to renew their contact in 2012.

  • YohanesMay 30th, 2010 at 11:11 am

    @Tom
    that’s a bit relieving though, at least i can calm down few customers which try to compare domain prices :)

  • Sachin BhatiaJune 15th, 2010 at 11:56 pm

    @Mahedi: Try average out .com and .net pricing. Effective strategy, per my opinion, is to club offer with .com

    You can either pocket big margin with lower volume or can play a card of high volume with lower margin. Depends upon each of website but latter is always better.

  • TomJune 25th, 2010 at 11:09 am

    @Guranteed Google First Page

    1 – the cost price for .com and .net domains that every registrar pays will certainly increase.

    Margins in the industry are very tight so it seems most will be raising their prices by a similar amount – one or two of the more may hold out – but I guess we’ll find out soon enough.

    2 – Whats with your miss-spelt Guaranteed Google username? If you’d like to post again, please change your username to something less spammy!!

    ps. all comment links are automatically no-followed …

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