Donuts Reducing Prices For 1.1M Unsold Premium Domain Names

Donuts is to reduce the price for approximately 250,000 of their premium domains and more than 850,000 premium domains will move to standard pricing on 5 November across their portfolio of new gTLDs.

Called the Donuts Premium Pricing Event, it will commence on 5 September and will allow domain investors, entrepreneurs and anyone else to register their domain names of choice before prices drop and, Donuts hope, demand inevitably increases for these valuable domains. So when a buyer registers a premium domain from 5 September to 1 November that drops to standard pricing on 5 November, the buyer will pay the existing first-year premium price but will lock in the standard price renewal going forward.

For anyone else that’s interested, there will be pre-ordering available through participating registrars, although the list of participating registrars hasn’t been released yet.

It should also be noted that in April Donuts announced that it will be changing standard prices for the majority of its new gTLDs. The changes will go into effect on 1 October. Until then all registered domains may be renewed for up to 10 years at their current renewal price.

Of the 241 Donuts TLDs covered by the price changes on 1 October, 16 will remain unchanged while 220 will increase in price between 6% and 9%. The remaining 5 have been changed to align with other competing TLDs in the market, including a 35% price reduction to .GROUP. In total, the average increase is just under 7% and will only affect standard price domains, not premiums, so it will have an impact on those domain names moving from premium to standard pricing.

Since the launch of the first of Donuts’ new gTLDs in 2014, more than 100 registrars have sold over 250,000 premium names for more than $53 million in BIN revenue. The Donuts business intelligence team perpetually analyses and adjusts pricing across their 242 top-level domain portfolio, including standard and premium names. Prices are optimised so that registrars and their customers get the most out of the portfolio.

Prior to the Donuts/Rightside merger in 2017, each company managed its premium portfolio differently. For instance, Rightside classified thousands of premiums per TLD as premium, and set relatively high prices, compared to Donuts. Over the past 18 months, Donuts has focused on their premium domain portfolio, using machine learning to analyse price elasticity for many of their new generic top-level domains. Learnings from these tests clearly show that lower prices for select new gTLD premium domains result in a significant premium registration sales lift across customer segments. Therefore, approximately 250,000 Donuts premium domains will drop in price and more than 850,000 premium domains will move to standard pricing, which makes them more attractive to domain investors and will significantly increases quality inventory for those registrars not currently selling premium domains. Cumulatively these price changes better align average list prices within segments of the Donuts premium portfolio with average sales prices.

Donuts have provided an interactive Premium Pricing Event Directory that is available here.