The US government gave green light to Verisign to raise the domain name price

Verisign’s .COM domain name management agreement has recently been extended by the US government, allowing Verisign to raise price by up to 7%/year.

This contract has a term of 6 years. Every six years, the parties sit together, negotiate and decide whether to renew or not. With the approval of the renewal, the contract will be effective until 30/11/2024.

In the revised text, the US Department of Commerce has announced that new ccTLDs, gTLDs and social networks have created a more dynamic DNS market. Therefore, Verisign’s flexible pricing power is appropriate.

Accordingly, Verisign will be able to negotiate with ICANN to increase the price of .COM domain by up to 7% per year for the last 4 years of a 6-year contract. That is to say, since 2020, .COM domain will probably increase continuously.

However, in order to determine the time and the specific increase, Verisign still needs approval from ICANN. There is also the possibility of negotiating defeat and ICANN can turn the tables on a discount request.

You can find more information here.

The .COM domain, despite not having much price fluctuations in the last few years, is quite clear that the shocks are almost gone. Maybe because there are no promotions so the number of new domain registration is not too large, but Verisign still recorded quarterly growth. In particular, the renewal rate is high, reaching 75%, contributing to revenue of hundreds of millions of dollars for the company.

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