U.S. goverment just gave .com domain owners a $10.78 tax break

Cost of holding domain for six years decreases by as much as $10.78.

Hey, don’t say the U.S. government never did anything for you.

They just gave domain name owners a $10.78 price reduction over the term of the next .com contract by eliminating price increases.

Assuming that Verisign would have increased prices in the first four years of its contract (it had the right to do it in 4 of 6), that equals a $10.78 savings per domain that you would have held for the entire six years.

(Last time VeriSign waited a year before one of its increases, which reduced the overall holding cost over six years.)

Michael Berkens calculates that this will save Mike Mann almost $2 million over the first four years of the contract. The biggest savings come in years 4 through 6, when the price is $2.44 lower than it would have been otherwise.

And Mike Mann isn’t the biggest domain portfolio holder.

[Update: George Kirikos pointed out that if you round down it may come out a bit lower. I worked off of ICA’s numbers.