The continuous rise in .com domain name prices and its market impact

 

The continuous upward trend of .com domain name prices and its market impact

In recent years, the price of .com in domain has continued to rise, becoming a phenomenon that has attracted much attention in the Internet field. This trend has not only affected enterprises, entrepreneurs and domain name investors, but also had a profound impact on the entire domain name market.


The rising trend of .com domain name prices


Since 2021, the price of .com for domain has begun to rise year by year. According to the agreement between Verisign and the US government, the wholesale price of .com domain names will increase by 7% each year from 2021 to 2024. Specifically, on September 1, 2021, the wholesale price of Internet .com domain rose from US$8.03 to US$8.57; on September 1, 2022, the price further increased to US$8.97; on September 1, 2023, the price was raised to US$9.59; and by September 1, 2024, the price will reach US$10.26.


This continuous upward trend shows that the registration and renewal costs of .com domain tld are gradually increasing, which puts higher economic requirements on domain name market participants.


Reasons for price increases


1. Strong market demand
As the world's most widely used top-level domain name, web .com domain have extremely high brand recognition and market value. With the popularization of the Internet and the acceleration of corporate digital transformation, more and more companies and individuals choose to register .com web domain, resulting in a continuous increase in market demand.


2. Market monopoly effect
As the only management agency for site .com domain, Verisign has a market monopoly. According to the agreement, Verisign has the right to increase domain name prices year by year within a specific period. This monopoly makes price increases inevitable.


3. Increased cost pressure
Domain name registration and management involve multiple links, including technology research and development, security, and customer service. In order to improve service quality, Verisign needs to invest more resources, which further pushes up costs.


4. Currency depreciation and exchange rate fluctuations
In the global economic environment, currency depreciation and exchange rate fluctuations also have a certain impact on domain name prices. Although the RMB exchange rate against the US dollar has remained stable recently, the global currency over-issuance has still indirectly driven domain name prices.


Market Impact Analysis


1. Challenges to Enterprises
For small and medium-sized enterprises and startups, the increase in the price of .com top domain has increased the cost of building websites. Enterprises need to be more cautious in choosing domain names to avoid affecting their budgets due to excessive costs.


2. Impact on Domain Name Investors
The increase in domain name prices has increased the cost of holding domain names for investors, and the risk has also increased accordingly. Investors need to more accurately select domain names with potential to ensure a return on investment.


3. Intensified market competition
As the price of .com website domain rises, some companies may turn to other suffixes (such as .net, .org, etc.) to reduce costs. This trend may intensify competition in the domain name market, while also providing development opportunities for other suffixes.


4. Promote the optimization of domain name resources
The price increase may prompt some domain name speculators to abandon domain names with average appearance, thereby improving the effective utilization of domain name resources. At the same time, the value of high-quality .com site domain will be further highlighted.


Countermeasures


1. Plan domain name registration in advance
Enterprises should register the required top level domain .com as early as possible to avoid further cost increases in the future.


2. Choose alternative domain name suffixes
For companies with limited budgets, consider using other domain name suffixes, such as .net, .org or country code top-level domains (ccTLDs) to reduce website building costs.


3. Pay attention to market dynamics
Domain name investors should pay close attention to market changes, choose domain names with long-term value for investment, and avoid blindly following the trend.


The continuous rise in the price of .com domain service reflects the strong market demand and the reality of market monopoly. Although the price increase has brought challenges to some companies, it has also provided an opportunity for the optimal allocation of resources for high-quality domain names. In the future, with the further development of the Internet, the market position of dot .com domain will continue to consolidate, and its price trend and market impact deserve continued attention.

How to Register a .com Domain

To register a .com domain, you can use any accredited domain registrar (e.g., NiceNIC.NET). Simply search for your desired domain name, check its availability, and complete the registration process. 

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