Pricing Strategies for New gTLDs

Published on March 23, 2012

Pricing Strategies for New gTLDs

    In the past few years, many new top-level domains of general use (gTLD) have appeared, and free registration has also opened in a number of national domains. Each domain zone has its own pricing strategy, which gTLD administrators have chosen based on the purpose of the domain and their ideas about the most profitable strategy.

    In light of the opening of free registration of our own top-level domains, we will talk about different pricing strategies in the domain industry.

    Free

    Free domain registration can be done in different ways and for different purposes.

    The first option is to open a zone in which everyone can register a second-level domain for free. There is already a company planning to create a .FREE domain. Of course, there will be a limitation on the number of registrations for one client. We think this is not a good idea. Such a domain zone will be similar to a free hosting with all the ensuing consequences. Cybercriminals will actively use the free domain, therefore, sites in this zone will start to be blacklisted by search engines and programs to protect the computer from malicious software. Therefore, given the high cost of registering gTLDs, a free zone can easily become unprofitable: parking domains with expired registrations and selling them is likely to be insufficient for a successful business.

    The second option is free registration for clients, community members, etc. For example, the administrator of the .bank zone can enable the free registration of names for banks, and Ebay - domains like name.ebay for their customers. This will be a very common model, but in this case, the purity and quality of the entire domain space of the new gTLD cannot be guaranteed either.

    Cheap

    The next strategy is to provide domain registration at lower prices than in the zone. СОМ. VeriSign is gradually raising domain prices. COM, and some companies are already registering them for $ 12 or more. If you give customers an alternative to a large domain zone with a registration cost of $ 5, then it is likely that they will choose a new zone, especially if all the suitable domain names in COM and other large zones are already occupied.

    You can do it another way: announce a higher registration cost, but do a lot of discounts.

    This strategy has its drawbacks - the .INFO zone is an example of this. Cheap prices attracted a lot of customers, but this domain does not have a good reputation right now because of the large number of spam sites.

    As in the zone. COM

    Registration at the prices of the zone. COM - $ 10-15 per name ($ 5-9 for wholesale registration). The idea of ​​this strategy is simple - customers are accustomed to such prices, and therefore will buy domains.

    Expensive

    As an example of expensive domains, you can use the zones .so and.xxx - registration of names at wholesale prices will cost $ 20 and $ 60, respectively.

    Such a strategy will bring great success if you manage to attract attention to your domain. This is likely to be the choice of domain owners for large communities, such as domains for cities.

    A New York store is likely to prefer to register a domain in a .NYC zone for $ 50 than a domain in a .BIZ zone at a much lower price.

    Very expensive.

    Exclusive domains with a number of additional services. To get them, you probably need to be a member of the community for which the domain is intended.

    If the owners of the .bank domain do not make registration for financial institutions free, they may go this route. In this case, the cost of registering a domain will be hundreds or thousands of dollars.

    This is a fairly brief analysis, we will be glad to hear your thoughts and additions.