Yahoo’s Domain Service is a Rip Off
Nothing upsets me more than when a company tries to take advantage of their situation. As I mentioned in my SEO Domain Strategy 101 article, I own great deal of domains – in fact the exact number eludes me but I know it is around 1,800 or so. I have been buying, building and collecting domains since at least the mid-90′s and for a few years in the late 90′s I used Yahoo’s Domain service for most of my domain purchasing and hosting. Even though I have since moved all of my hosting away from Yahoo I still have about 150 domains that are housed and auto-renewed with Yahoo. Most of these domains I have never done anything with or have just held onto since I registered them for whatever reason. Every year I get my annual auto-renew letter, the price usually fluctuates, but it has always stayed in the $9.95 to $14.95 range. Whatever, no big deal since all my good domains are housed elsewhere and I have it on my list to transfer all of my domains to one company (not Yahoo).
Well imagine my surprise when I received the below email from Yahoo this morning. Yahoo is now charging $34.95 for domain renewals. Are you kidding me? $34.95? I am shocked when I see domain renewals costs over $10…$34.95 had me thinking it was an error. So, I proceed to call Yahoo and their helpful customer service staff confirmed the price change that went into effect July 1st. Wow. I am absolutely stunned by this. Anyone with any sort of domain knowledge will say that this is an absolute rip off by Yahoo and will result in a mass exodus of domains.
After digesting this for a few hours I started to think about what was Yahoo’s reasoning behind the price increase considering they are now nowhere near competitive. My first conclusion was that they wanted out of the domain business, so basically if you don’t transfer your domain you would pay 3 – 4 times the going rate Fewer domains, higher profit margin. Hmm, doesn’t make much business sense since the new fee of $34.95 a year per domain would probably not cover all of the domains they ended up losing. My next thought was that they are trying to up sell me different services (like domain hosting and email), that when bundled together would decrease my overall renewal cost – for example, sign up for Yahoo’s $9.95 monthly web hosting and get your domain renewal free. This is a very common practice…however, when you look at the email below there is no mention of any other service. Housing a domain costs nothing except a $.20 yearly ICANN fee and a few bytes of space.
So what is the deal Yahoo? Did some moronic product manager slip this one by while Yahoo has been in chaos? If anyone has any idea as to Yahoo’s logic behind this ridiculous increase in domain renewal fee please share. In the mean time I will be busy transferring my remaining domains away from Yahoo.
