A drop in total registrations will be a healthy sign of a maturing market.
This week I published my annual predictions podcast episode featuring 19 predictions for 2019.
Here’s another prediction for 2019: the number of registered domain names in new top level domains will decrease. But this is actually a good thing, as I’ll explain.
The reason for the anticipated drop is a shift in business model at Famous Four Media, which is now Global Registry Services Limited, aka GRS Domains.
The domains under management in this portfolio were built on very cheap (sometimes free) domain registrations. That’s why .loan is the third (or second depending on who you ask) biggest top level domain in terms of volume. nTLDstats shows 2.2 million .loan domain names.
John McCormac, who runs HosterStats.com, has been tracking .loan and other former Famous Four Media domains and says renewal rates for these domains are dismally low when renewal prices are higher. He calculates that renewal rates for 2017 registrations was under 1% through the first three quarters of 2018. So over 99% of those domains dropped.
Historically, these would be replaced by people registering new domains. But GRS Domains started charging higher prices toward the end of last year. Retail prices for .loan domains are now $10+. Here are HosterStat’s new registration calculations for .loan through the first day of each month: Click here to continue reading…