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You even kinda get the best of both worlds, a cash infusion and more money in the long run. The org TLD has 14 million registrations in it right now. If Ethos
by techsupporter 7y ago
You even kinda get the best of both worlds, a cash infusion and more money in the long run.
The org TLD has 14 million registrations in it right now. If Ethos announces a 50% price hike (increasing the base charge from $9 to $13.50), my guess is 2% of the domains would be immediately renewed for the 10-year max at the old price.
So right off the bat, Ethos have 280,000 domains * ($9 * 10 years) = $25,200,000 in new cash. Now that means they've lost out on $37,800,000 from the price hikes but that was collected over the next ten years and assumes that all of those domains would have continued for ten years. They've no choice now; the money is paid.
If Ethos lose another 10% of org registrations because people don't want to pay the increased cost, that leaves 12,348,000 domains left. Assume another 10% of those either don't renew for some other reason or renewed for more than one year but less than ten. Now you're at 11,113,200 remaining domains that, in the year after the announcement, bring in an additional $50,009,400.
So just by announcing a price hike and not-so-subtly encouraging domain owners to "take advantage to lock in today's price for years to come," Ethos bring in $75,209,400 with two-thirds of that being new recurring revenue and the remaining third suitable for distribution as bonuses to all of the executives who made such a clever scheme what it is.
- Symbiote 7y agoIt occurs to me that I should probably extend all the .org domains I control (for a non-profit) to 10 years, now.
- techsupporter 7y agoI have three org domains I really care about and have already bumped them out as long as currently-PIR will let me. Sucks to have to but two of these domains are so old, I have no idea what all would break if I let them go.
- ada1981 7y agoAlso keeping in mind that if one locks in the domain for 10 years, they are going to be much more likely to renew at whatever the ungodly sum is when the 10 year period is over.