Thursday, November 30, 2006

Internet Marketing Strategy--Future Hike In Domain Names?

Internet Marketing Woes

Is there a pending fee hike in domain name registration? I recently read an article that VeriSign the company that is responsible for solely handling the back-end system for .com names, which by the way constitute the greater percentage of the 105 or so million websites registered worldwide, is arguing agressively for a hike in the fee that domain registrars should pay them in the future.

At the moment registrar services are charged $6 per year for each name and added to that registrars have to pay ICANN (Internet Corporation for Assigned Names and Numbers) are non-profit organization 25 cents per name.

So the question is if this price hike is approved will the consumer ultimately have to pick up the tab?

So in essence there really isn't much money to be made from basic registration services. Most register companies then have to find their profits from backend sales and other wily tactics.

Go Daddy for example has struck a deal with Google whereby it can sprinkle Ads on registered .com names that are not yet developed or published. Well I suppose with such tiny profit margins from basic registration services one has to do what they can to get the ka-ching!


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