Changes in pay-per-click market, new registry contracts threaten industry.
The domain name industry is worried about changes in the pay-per-click market and new registry contracts that allow for wholesale domain name price increases, according to the 2007 Domain Name Wire survey.
36% of respondents rated “changes in the pay-per-click market” as the top concern when asked “What do you think is the biggest issue facing the domain name market in 2007?” Domain professionals are concerned that click fraud, a tightening of parked page rules, and fluctuations in online advertising may take a bite out of the strong market. This concern is not new; last year 34% of respondents rated this as their top concern.
The second biggest concern is new registry contracts that allow registries to increase prices. Registries set the wholesale price of domains. The wholesale price of a .com, managed by registry VeriSign (NASDAQ: VRSN), is currently $6.00 but will increase 7% later this year. Prices of other domain extensions, such as .net, .org, and .info, are also increasing this year. 24% of respondents said these new contracts are the biggest threat to the industry.
Other concerns remain domain theft, reverse domain name hijacking, and malevolent domain name registrars (e.g. RegisterFly).