The .COM registration price increase and consequences to other gTLDs

We have already discussed that the .COM registration price increase will happen over a five-year period, with a projected price increase of two dollars by the end of 2026.

This is due to the fact that  Verisign and ICANN consultations are drawing to a close and the registry will now have the authority to increase domain registration prices.

We have to note that ICANN is a non-profit organization and as such it outsources the authority to register domains to third parties, coupled with oversight by the US departments of Commerce and Justice.

Verisign and ICANN consultations

ICANN wants to provide Verisign with rights more broadly in line with other registrars, allowing the company to operate a TLD, as well as, act as registrar. What this means is that up to now Verisign could not compete for end-user domain registration with other registrars, while now it will be able to do so only for .COM domain registration.

.COM is operated by Verisign

Renown domain registrars and domain sellers have noted an objection to the change, labeling the deal as being made “behind closed doors”. ICANN will receive $20 million from Verisign as part of the new deal, incremented over a five-year period and starting from January 2021.

The .COM domain registration price

Since 2012 the .COM domain registration price has been frozen to $7.85, but this situation is poised to change, with price inflating in four out of every six years, up to 2026 or potentially in perpetuity.

Some fallout can already be felt, as Enom registrar (which is owned by Tucows) has given some info on their reseller plan with a price increase for .COM domain registration moving to $13,50 from a previous $11,50.

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On the other hand, Enom has noted that the price increase can be leveraged with the provided discounted pricing based on new domain registration volume, and annual domain spend.

What does this price increase mean for other gTLDs?

Particularly in this case with Enom registrar, it is important to note that their pricing structure will make an important distinction between generic (gTLD) and geographic (ccTLD).
Quote: “This updated pricing structure will standardize the price for geographic TLDs across all plans. The price for generic TLDs, however, will be appropriately discounted for each plan.”

Their approach with multiple price points for each TLD will make it more expensive and difficult for small registrants and resellers to attain appealing price points and will reduce their profit.

Enom increases price for reseller plans

The price for other gTLD may not vary that much, as these domain extensions do not possess such appeal and recognizability, though we must keep an eye on possible slight price increase that would accumulate over this five-year period.

Conclusion, the price increase is significant?

This kind of pricing attitude heavily favors bulk domain registrations, as domain registrars do want growth year after year. The .COM domain registration price inflation will be significant in a few years and can be avoided.

With up to 10 years which is the maximum domain registration period, if you are ready and able then handpick your valuable domains and renew your domain registration now with the cheap price and maximum period.