Saturday, April 7, 2007

VeriSign increasing rates; 4500% profit

[Image: Trend of domain tasting compared to registrations]The current controversy is VeriSign and how they recently raised the base cost of domains. One person has gone as far as to calculate that there is a 4500% profit margin for VeriSign. An ex-board member of VeriSign has said that each domain costs the company $0.14 to handle- everything else becomes profit.

One of the underlying problems with VeriSign is their lack of initiative. The image at right is of the trend of domain "tasting." Tasting is where the registrant will register the name to see how well it works for type-in traffic, and then drop it within the five-day grace period. VeriSign has done nothing to stop people from gaming the system in such a way.

Like Microsoft, VeriSign is abusing the control that they have of the system. Because they can, they will, and as far as anyone can tell, there is no justification for the rise in price.

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