Archive for May, 2010

Bido.com For Sale! Make Your Offer

So here it is: the TOP story of the day – “Bido is ceasing operation as of May 5, 2010. All transactions and accounts will be gracefully finalized and closed.” End of quote from Bido website.

I will not deliberate on why Bido failed and if I liked it or not – you can read other domainers opinions on other websites like DomainNameWire or you can just think for a moment on your own attitude to Bido auction platform. The only thing I really see popping out everywhere in comments to this news is that Bido was to complex. I have similar feeling about it.

But let’s get back to my post title.. I found an interesting comment on DNW.com made by Jarred Cohen, COO of Bido.com:”[…] Since we made the announcement this morning, we had some significant offers come in. If anyone else reading would like to explore acquiring the Bido.com brand, list, and technology, get in touch with me soon. This is a time sensitive opportunity.[…]”.

So it looks like there’s one and only chance to acquire Bido.com and the price is probably not so high taking into account the fact that they just wanted to close it down and didn’t even think of selling Bido. I believe there are at least couple of companies that may be interested in acquiring Bido. Let’s see what future brings. If you would like to contact Jarred Cohen please email him: jarred@bido.com.

I wish all the best to Sahar and the Team, and I am sure they will surprise us with new interesting stuff in coming future!

Daniel Dryzek

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.COM & .NET Prices To Increase July 1, 2010

On July 1, 2010, VeriSign, the registry for .COM and .NET, will increase prices – .COM will go up 7%, and .NET by 10%The increase will be passed to registrars like Go Daddy and then, unfortunately, to consumers like you.”

So I got an email from Mr Bob Parsons today and you probably got it too. Next paragraphs of the same email:

“As of July 1, we will be forced to raise registration and renewal prices for these two popular top-level domains.

If you wish to avoid this price increase, you can renew your domain names by June 30 and add another year to your current expiration dates. You have the option to register or renew for multiple years and lock in long-term savings.”

7% and 10% (for .com and .net respectively) is a HUGE growth in price. The registry fee for .com domain names will increase from $6.86 to $7.34 (+ $0.18 ICANN fee) and the registry fee for .net domain names will increase from $4.23 to $4.65 (+ $0.18 ICANN fee). It is getting expensive..

I am not a heavy investor in .com nor .net domain names, so I don’t really care so much about this increase but those of you who have thousands of .com and .net names in your portfolios – I would definitely get “uncomfortable” with these fees increase.

I am more experienced with ccTLD domain markets in Europe than with the .COM market. So the standard price for an average European TLD would be somewhere between €2 – €5, which equals to $2.6 – $6.6 per year. This is pricing for popular ccTLDs such as .de, .nl, .fr, .es, .eu. I invest a lot in .pl domains and €10 renewal fee is really expensive as for European conditions. But the price was €15 back in 2008, so the trend is right – domain fees are going DOWN.

It is the other way around when it comes to .COM and .NET fees – they go UP. So what will happen if they will go UP by 7% (.COM) and 10% (.NET) for the next 10 years each year?

.COM & .NET fees projection (ICANN fee included)

2010 $7.52 $4.83
2011 $8.03 $5.30
2012 $8.58 $5.81
2013 $9.17 $6.37
2014 $9.80 $6.99
2015 $10.47 $7.67
2016 $11.20 $8.42
2017 $11.97 $9.24
2018 $12.79 $10.15
2019 $13.67 $11.14
2020 $14.62 $12.24

VeriSign is in a position where they CAN increase the pricing. So why would they not do that? Domains is business for them as it is business for us. It is crazy that ICANN has accepted such an agreement with VeriSign allowing them to increase the fees each and every year. And they will probably prolong the agreement for the next period of time.

But aren’t you afraid of these fees increases in the future? Will your portfolios still be profitable when .COM and .NET fees double? I am asking all of the domainers investing in .COM domains. These are questions to you and for you.

Or maybe you are just fine with these fees increases and it doesn’t really influence your domain business at all?

Daniel Dryzek

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