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ICANN has contracts which are in review proposing just that sort of pricing on top level domains. This contract is in the review process, nothing has come to pass yet -
Imagine this:
You open the mail and see a renewal
notice for your domain name that is $75,000/yr, instead of the $10/yr
that you were used to. You call up your registrar, thinking “this must
be a typoâ€. But, instead, you are told, “due to the success and high
value you are receiving from your domain, the renewal fee really is
$75,000/yr.â€
All because you built a brand and a website that is worth the high price. So instead of renewing the website at $10 or so, you are told you need to pay $25,000 or $1 million (ie. Google.com). This doesn’t just stop at renewals, it extends to registrations as well. For example, (assuming that neither of the domains are taken) a brand new registration of buy.com would be infinately more expensive than the registration of buycomputers.com.
This is the registrars’ way of capitalizing on the growth of the internet. They see domain names become infinitely more valuable once they get built out, so their thinking is that they stand to profit on the branding and popularity. In all actuality, it takes a great domain name and some serious web development to nab a high price in this world. Or it takes a great domain name with a serious end user to make the domain valuable.
The next thing you know, tax will be charged for items bought on the internet and pricing will occur based on internet usage and the applications, like voip and streaming video. Where is it all going?
The original article can be found at ise.co.uk.
Technorati Tags: registrars, domains, domaining, website, web development, prices, renewal, icann, internet
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A similar problem arises in leases for retail property. You open a store, build up a loyal clientele who are used to visiting you at 1st and Main street, then your landlord raises the rent a ton. You’ve made your location so valuable that you pay up.
The resolution of this problem has been long-term leases with rents partially based on sales. Ten year leases are common, which helps the store. But rental rates include a percentage of sales, so that the landlord profits when sales are strong. The percentage of sales clause makes the store’s business less risky–they only pay a high rent if they can afford it.
Right now, domain-owners should probably renew for the longest term possible.
That is an excellent point. One that I didn’t think of before you mentioned it. And the solution of long term leases is absolutely necessary in that environment as well as future domain sales.
I think it will discourage some entrepreneurs/innovators from seeking online ventures, much like the current net neutrality conflict For the most part this is a hugely unregulated market which is still being capitalized on. How the Internet is changing..