Thursday, April 03, 2008

Special Introductory Domain Pricing

I just registered about 100 new domains last month to be "parked". I think the slowing economy may slow the domain registration and renewal rates to some extent, but those of us that are making money from parking domains or developing domain names into web sites, we will continue to purchase more.

But if those that control prices would lower the cost for the first year of domain registration, it could really spike the sales of new domains.

For those parking domains, the initial cost is a significant factor. If I invest $70 and get ten domains, I am operating at a loss until I start to earn from those domains. That could start in a few weeks or several months. Those domains need to earn $7 within 12 months for me to break even, which may or may not happen.

But if I can spend $70 and register 35 domains, my overhead is less and I will have more domains to work with and that will lower my risk per domain that I won't be able to cover my costs during the year. Then in 12 months I can decide if I should renew the domain for the full price of $7, sell it, or just drop it.

If domain prices were low the first year, it would give the industry a huge shot in the arm, in my opinion. At the end of 12 months most parked domains or built-out sites are going to be working to some extent and the full renewal fee will not be a consideration. The industry should seriously consider making this a policy for ALL Top Level Domains since the experiment with the .info TLD has shown that it is an effective promotional method. Many of the domains we just both last month were .in ($4) and .cn ($3) because of this very fact. I feel that programs like this would also help dislodge .com as the TLD "king" as users become more aware and used to other TLDs and ccTLDs.

And for those that think any TLD that is not a .com is trash, all I can say that may be true for you, but my top parked domain for last month was a .in domain that was hand-registered new.

(hris


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