The domain business is getting crowded. Case in point the Verisign domain renewal rates are slowing due to competition. A recent article from Forbes has the following details about these facts.
- Verisign reported better than expected earnings for the third quarter
- Domain names continue to surge
- However first time renewals were weaker
Quite simply, as more domain registrars come into the market globally, domain renewals will decline. In fact, this isn’t just a Verisign issue, it’s an issue among all domain registrars. Granted, we don’t have the numbers with all web domain registrars, but as more come into market with lower rates, domain owners will be tempted to test those registrars to move their domains.
Be that as it may, Verisign has is being forced to raise domain registration fees. Admittedly, it’s a sting for their customers, but the trend will eventually make it’s presence for all domain registrars. Case it point, it’s basic business supply and demand. However, those registrars will need to get creative to make money long term. It’s a fact, you can’t build a business by being just the cheapest on domain registers alone.
So current customers will likely complain about the Verisign Domain Renewal Rates increases. However, as we mentioned, it’s the nature of doing business with competition. Will this trend continue? To start with, it’s likely to continue for now as more competition comes into the domain business.
The good news for Verisign will be that the .COM business will always be King for domain registrations. However, as other domain extensions becomes available, customers will choose other options if their .COM is taken. To conclude we will continue to see how Verisign handles this new competition.
