I don’t understand the logic of promoting discount prices to end users.
Many times a month I get promotional emails from domain name registrars. The newsletters are filled with special offers on domain name registrations.
Get this extension for only $1.99! This one is half off—just $4.99! Or save big on this extension, just $9.99 for the first year!
I understand that price is a factor when people search for domains. If they see a domain they like in two different new TLDs, they will probably pick the less expensive one, all things being equal.
Offering discounted sale prices for the first year clearly works, judging by how many registries offer these deals to registrars.
But the idea of someone seeing a special price in a newsletter, clicking through and registering a domain because it’s on sale? To me, this devalues the role of a domain name.
A domain name is a critical component of one’s web presence. It’s the only component that’s hard to change after it is selected. Promoting that certain extensions are on sale demotes the importance of domain name selection.
Now, if that newsletter is targeted to domain investors, there is some value in telling them they can get extension .abc at a discount so they can buy a few. Same goes if you want a spammer to register a thousand domains at discounted prices.
But if it’s geared to end users, it doesn’t make sense to me.
Joern says
I think you answered your question in the second last paragraph. The dynamics are:
– get people to buy the domain
then
– get people to use the domain (before renewal is due)
so, even if the original purchase was primarily price driven, the majority of users may find it too much effort to change it on their (website/email, etc) and just keep renewing the name at full price.
Michele says
I always thought end users were just as likely as any domainer to start hand-registering impulsively. I’ve seen some doing it.
Samantha Frida says
Andrew, absolutely right. Apart from the price being reduced, I wish there were more efforts into showing the value. What it possibly may do is have the end user revert back to legacy TLD’s like .com.
It is a short cut to “success”, in my opinion, growing volumes, but lacking in quality usage. When numbers are set in the beginning to reach, it would be interesting to understand how they were reached.
There is so much dependance on the channel to drive growth and that they are fatigued, lacking the bandwidth to drive value on behalf of a Registry and have potentially been working in silos for such a long time, that the know-how to think any differently, is slow.
What is the incentive for the end user to renew the domain name at regular price at the end of Year 1? Most Registries/Registrars impact the enbd user a few months before expiration instead of “touching” them a few months into, from the date of registration.
For domain investors, reduction in pricing along with potential buyer lists would be an incentive to not just gain volumes for/by a registrar but have the registrations stick around past Year 2, along with usage.
The industry has been working in silos for a such a long time, that it needs to be re-wired with new hard code and some fresh creative lenses introduced.
I am pleased to see companies like MailChimp starting to add value in the overall web space.
The current industry needs a shake up – new leadership with integrity, passionate folks looking to make an impact in a healthy collaborative way and the list goes on. There is so much we could all do to create a health competitive environment, expanding the Internet, providing many businesses who have creative ideas, to be more engaged with the industry.
Many folks have worked in it for a long time, including myself, but to see how businesses operate through personal relationships that create unhealthy environment is disappointing because it is a waste of opportunity for many good-standing folks, who eventually leave, and businesses, who lose out on these opportunities as a result.
There are so many events outside of ICANN, that support SMB’s globally, where businesses in the industry should be present as industry advocates in some way or other.
Snoopy says
Armchair quarterback award goes to this post.
Punk Rocker says
Very well-put and sincere insights Samantha
BullS says
That how I make my big money, hand reg cheap and resell them at big bucks$$$
For example, I had reg okiegal.com,airporttourism,com,queerstrong.com,redneckguy.com and many more and sold them for big profit!!
This is the same as no fee for stock transactions now…so people are enticing to buy more stocks or no fee for listing on ebay…
IR says
I think the answer depends on the TLD. If you have a .com domain, discounting registrations is not likely to impact value of the domains. If you have an nTLD, that may depend on who registers the domain name. If it’s spammers or malicious parties, then it absolutely lowers the value of those domains and the entire TLD.
Snoopy says
Let’s stop putting domains on a pedestal. This is about selling a domain to someone who doesn’t need it but like to collect, not a “critical piece of infrastructure”. It is like selling a bottle of Coke or a $3 dvd.
Hail Murray says
Domains rule!
168 says
I see it as a progression of registrars needing to add + services to grow and using steep discounts as a leader to higher margin products.
End user market will continue to grow.
Investor market no so much.
Makes sense to cater to the growth.
I don’t care for using the word “name”.
Yes, initially that’s what it is.
However, maybe an updated descriptive would enhance the perception of what domains have become for many beyond big Corp. Now, a lot of integration of services are available and web sites are much easier to develop.
for example
Domain channel
The word “name” just doesn’t have the same descriptive value as “channel”
Even “sites” would be a step up from “names”
I do believe potential buyers understand what you can get for .99 cents compared to 3k- up once you entice them to come take a look.
Cheers