Most of us are familiar with the concept of registering a domain name for around $10.00 USD and then renewing said name for around $10.00 per year. Some of us are attuned to the concept of buying a domain name in the aftermarket for a greater sum and then renewing that domain name for around $10.00 per year.
A smaller percentage of us are aware of the fact that some domain name registrations carry a high, annualized, premium registration and renewal fees. In other words, instead of paying around $10.00 to register the name, you pay $500 to $2,000 or more. In addition, instead a renewal fee in the $10.00 range, your renewal fee is equal or close to your premium registration fee.
Some premium .TV domain name registrations were subject to high, annualized, premium renewal fees, prior to March of 2010. Some .TV domain names were priced, by the registry at $10,000 or more with an unsettling renewal fee equal to the $10,000+ registration fee. This pricing model was a distinct failure.
In the spring of 2010, the .TV registry adjusted their pricing model, maintaining premium registration fees, on some names, but eliminating the premium annualized renewal fees. This revision gave the .TV extension a big boost and helped it to gain in popularity.
Over the last couple of years, we have seen a number of new gTLDs burst upon the scene. Many hundreds have arrived, in rapid succession including: .club, .xyz, .guru, .bingo, .ninja, .gives, .lawyer, .law, and on, and on, and on. Some call them the not-coms… I like to refer to them as the the dot-whatevers.
I expect that, over the next twenty years, we will see a huge percentage of the developed world’s population, having a number of personal websites which they operate. We are begining to see it already within the walled gardens of Facebook, Twitter, Linkedin and Instagram.
People are starting to realize that creating a freestanding website, with a unique website address (domain name), using WordPress, Wix or the site building tools, offered at the registrars, is not that much more difficult than creating a Facebook page. Eventually, I expect most will have websites for their family, pets, hobbies, reviews, lifestyles and just about anything else you can think of. In my opinion, the new gTLDs can serve well as unique identifiers for these personal websites.
In counterpoint, I believe that far too many dot-whatevers were released, too quickly, making them confusing and counter-intuitive. There is only so much we can remember, having a short, intuitive extension to the right of the dot (eg. .Com, .Net or .TV) makes it much easier to recall what’s on the left-side of the dot. For mission critical business applications, it seems less than desirable to invest in building a brand in the untested and highly diluted marketplace of new gTLDs, if you can afford not to. When these untested new extensions carry high annualized renewal fees it makes the decision even easier, imho.
I know, I can talk for hours, so I’ll get to the point. Some of these new gTLDs arrived on the scene with high, annualized, premium renewal fees. I didn’t expect that this would work well, in the highly diluted marketplace of new and untested extensions. It appears that perhaps it hasn’t.
I was doing some research and noticed the following promotion at Name.com:
Special Offer on Premium Renewals
From May 16 to June 30, 2016, register a Rightside Premium Domain name and you’ll be able to renew it at $12.50.*
Is this just a test, or will the new gTLD registries take a step back from the high, annualized, premium renewal fee model? If some of the registries do change course and eliminate the high, annualized, premium renewal fee model, how will they deal with the legacy purchases which carry high, annualized renewal fees?
Most importantly, how do you feel about high, annualized, premium renewal fees? Have you, would you or should you register a domain name which carries a renewal fee in the four or even five-figures USD? Please sound off and let your opinion be heard.
I’d value your thoughts. I’d be grateful for your likes and shares
Claude Dauman
Source: domainers mag
Are High Annualized Domain Name Renewal Fees a Recipe for Failure?
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