Worthy of note is that Go Daddy is the only registrar, among those with the largest market share,
which varies the price of registration depending on which gTLD is being used. A Go Daddy registration
was priced at USD 6.95 per annum and
was priced at USD 4.95 per annum. The
registration fee is 45% lower than the
registration fee. One contributing factor may be
ICANN setting a lower maximum fee which can be charged by the
registry (NeuLevel) and the
registry (Afilias). The maximum price paid by a registrar to the registry for
, under the agreement
between ICANN and Afilias, is USD 5.75.
In addition volume discounts exist under
. The maximum
price a registrar pays to the NeuLevel is USD 5.30 for all domain names registered up to 4.99 million,
USD 5 for all domain names registered between 5 million and 9.99 million and USD 4.75 for all domain
names registered which exceed 10 million.
Another interesting element in terms of Go Daddy's pricing is the membership discount programme
for domain name registration. Go Daddy offers this programme through another ICANN accredited
registrar, Blue Razor, with a membership fee of USD 19.95 per year. By subscribing to this programme
with the annual fee of USD 19.95, members can register a
domain name for USD 6.85 per year. As
well as membership discounts on domain name registration, members can subscribe additional services
such as private registrations with discounted rates. For example, private registration is offered with a 50%
discounted rate from the regular rate provided by Go Daddy.
ICANN estimates that price reductions brought about by competition have saved consumers and
businesses over USD 1 billion annually in domain registration fees.
While this seems a reasonable
estimate it is hard to be specific without knowing the proportion of customers taking advantage of
discounts for registration services with longer duration. At the same time, not all registrars have discounts.
In 2004 Melbourne IT, a large non US registrar located in Australia, charged USD 35 for one year
registration of gTLDs and there was no discount for a longer term registration under any of the gTLDs. At
the same time if users do not sign up for longer term commitments, at registrars such as Network Solutions
and Register.com, they essentially pay the same price they paid prior to ICANN's reforms.
Some registries may be able to charge higher prices in the gTLD market because of the customer
relationships they have built in other markets (
ccTLD in the case of Melbourne IT). In other
cases customers may be happy to be able to have longer term registrations with trusted brands with
significant discounts over previous prices. In that sense few customers may pay the standard price which is
kept only to promote the discounted price. On the other hand, it may be the case that some customers are
not sensitive to the price or believe that the transaction cost would be higher than the potential savings if
they shifted their registration to a less expensive supplier.
As in any open market it is up to users to look for the service that best suits their needs. For users
most concerned with cost, the outcome of ICANN's reforms is that gTLDs can be obtained for very
inexpensive prices. At the same time, for users more concerned with other aspects of service, tremendous
innovation has been brought about by competition. Where services are bundled together with domain name
registration this needs to be taken into account in making price comparisons.