Prepare for higher .com prices in September: It’s coming

Domain owners can renew early to avoid the pending price increase.

The wholesale price of .com domain name registrations, transfers and, renewals is increasing later this year for the first time since 2012. Domain investors and consumers with sizable domain portfolios ought to prepare.

On September 1, the price Verisign (NASDAQ: VRSN) charges registrars for .com domains will increase from $7.85 to $8.39. Domain registrars, such as GoDaddy and Namecheap, charge a markup on top of this. In practice, domain investors and sizable portfolio holders pay a price only slightly higher than the wholesale price. Some registrars, such as Cloudflare, charge only the wholesale price to all clients.

These registrars will be forced to increase their prices on September 1 in order to continue making a profit (or breakeven, as it were).

Registrars will pay Verisign an additional $540 per 1,000 domains registered, and consumers ought to expect to pay at least that much more.

And the price is likely to continue to rise by 7% for the next three years, bringing the wholesale price to $10.26 — an increase of $2,410 per 1,000 domains every year.

Domain registrants can lock in today’s prices by renewing early, though. They can renew domain names for up to 10 years at the current price until the fresh price takes effect on September 1.

Now would be a good time for domain owners to evaluate their portfolios and consider registering domains early.