“We’re Yahoo – May We Gouge You?”

I’ve been using Yahoo’s web services pretty heavily since starting my business a couple years ago. I have a premium small business account for their e-mail service, and I’ve reserved a number of web domains through Yahoo (a number being actively used, others held in reserve), because at $9.95/year/domain, I couldn’t afford not to.

However, Yahoo sent out notice earlier this year that the cost of domain name renewal was going up to $12.95/year, starting in March 2008. Oooookay, I guess that’s not too big a leap, even though I seriously doubt that their costs for administering those domains has jumped by 25%, but I’m not going to quibble.

All of a sudden, now, another renewal notice comes that, starting in July 2008, the cost has gone up to $34.95/domain/year! Why? Or should I say, Y?

That, my friends, is gouging. Other companies are offering domain registration for way less, and at last check, digital storage of domain names wasn’t on the short list of inflationary pressures. Yahoo is obviously counting on the relative pain of changing providers as a strategy for extracting maximum dollars from current users.

Way to alienate your customer base, folks. I’ll be looking elsewhere…

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