Are Kenyan .KE Domain Names Too Expensive?

Recently, Moses Kemibaro present the marketing plan for the .KE top-level country domain, managed by the Kenya Network Information Centre (KENIC). In his presentation, he asks an intriguing question: Are .KE domain names really expensive?

Now I wasn't at the presentation to hear his thoughts, but from the slide show, I will assume that he feels that .KE domain names are not that expensive. I respectfully disagree.

.KE domain names are way overpriced

The real question that Moses should be asking is, "Are .KE domain names relatively expensive?" See, its not that .KE registrars are making 75% profit, like .com registrars, its that new web entrants, which they're targeting with the me.ke marketing plan, are going to be price sensitive.

At $5 or less per year for the more widely known .com domain name, the $45 per year fee for a .KE domain is crazy expensive. Add to it that young Kenyans (the assumed me.ke target market) have less to spend on domain names, and I say that KENIC should be trying to price personal .KE domain names at $2 or $3 per year.

Give me.ke domain names away!

In fact, I say that KENIC should be giving away the first year of a me.ke domain name. Why? Because the owners of a me.ke domain will invest in it, to make it real and respectable - its thiername.ke after all - and when year 2 comes along, they'll pay $5-10 to keep their new address alive.

A great example of this marketing plan as a successful business strategy is 1&1.com, the giant German web host. They give away the first year of a domain name and add on many important features for free, because they know that once a person (or business) invests in a domain name, they'll want to keep it.

And I should know. I've owned wayan.com, wayan.org, wayan.net, and wayan.us for a decade now.

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Wayan Vota

Inveneo

Wayan Vota is a technology expert focused on appropriate information and communication technologies (ICT) for rural and underserved areas of the developing world. He is a Senior Director at Inveneo and is the editor of ICTworks

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Comments

.KE domain names.

Submitted by Moses Kemibaro (not verified) on Fri, 07/09/2010 - 08:21

Wayan,

The pricing issue never seems to end. However, KeNIC must be self-sustaining and until such time we have the critical mass it will be hard to lower the prices massively as proposed. Whatever the case, going forward, we are looking at dropping these prices over time as the numbers pick-up.

Regards,

Moses

Cash flow trap

Submitted by Wayan Vota on Fri, 07/09/2010 - 08:41

I can see your point, but somewhere y'all need to take the risk of loosing short-term cash flow for long term financial gain. The free-premium model works very well in ramping up adoption and I'd say that's .KE's biggest problem right now - lack of usage. Once people know of .KE and its seen as a premium, you can raise rates and enjoy the cash cow.

the maths

Submitted by thinknoid on Fri, 07/09/2010 - 10:22

@Moses, shouldn't the ICT board or the government chip in, until such a time we attain the critical mass and the financials make sense. The more the users the cheaper it will be to have the .ke name. Better still can't the web industry in Kenya unite and contribute to make the maths work. if every firm took say 300,000 names at cost price, to do as they pleased with them, wont the numbers make sense?

@Wayan where can I get the marketing presentation by Moses?

Presentation Link

Submitted by Wayan Vota on Sat, 07/10/2010 - 09:01

You can find Moses's KENIC presentation on .KE domain names by clicking on the image in the post or the link below:

Kenya Network Information Centre (KENIC) Marketing Plan for 2010/11

False claim

Submitted by BOFH (not verified) on Wed, 07/28/2010 - 13:45

Sorry to admit, but your statement makes me believe that you have not really a deep insight in this industry.

1) Please send the url where one can get a .com "At $5 or less per year".

2) And which registrar of .com makes 75 % profit?

3) It is ridiculous to compare the Kenyan market with Germany! DENIC have some 14 *millions* (!) domains registered, while KENIC have some 12,000. This is 1,000 times less!

Considering this, a .ke domain must be 1,000 times more expensive than a .de-domain to get the same turn-over.

I don't know the actual wholesale price for co.ke, but let's assume around KSh 2,000/= or US$25.00. So the yearly turn-over of KENIC shall be around US$300,000. Taking the, compared to Europe or the US, enormous costs for bandwidth and housing in consideration, this is really not a turn-over, which gives one much space for dumping the fees.

Don't get me wrong: Of course I would welcome cheaper .ke domains, too, but it is economically hardly possible.

Disclaimer: I am not a KENIC employee or similar, just a .ke-domain owner.

About Domain prices

Submitted by Felix Muchiri Waweru (not verified) on Thu, 07/29/2010 - 04:13

Cheaper .ke and extra freebies is what will ensure Kenic break even.

It's known in every marketing strategy, no matter what target group, one needs to be generous; to help others and make intro without charging. Hence, .me.ke should be made free for the 1st year, thereof a fee is evident.

It's all about strategies (90%) remaining (10%) innovation. Get the word OUT! otherwise lest Globalization Eat Kenic up. It's blatant excuses when one can't deliver a fare priced product.

@ BOFH - There exits several, expensive and relatively fare Site Build It, Bluehost respectively.

To enable local content building spread, we as Kenyans need fare priced tools.

I concur with Wayans

Kenya domains are a bloody ripoff!

Submitted by Max - The IT pro (not verified) on Fri, 09/03/2010 - 02:49

Kenya domains are a bloody ripoff! Corruption & greed is everywhere it seems. Where can I get the cheapest price for a .co.ke and a .or.ke domain??
I deal exclusively with NameCheap.com for my domains. No hassles ever. And why do most of these .ke registrars NOT allow owners to manage their own domains with a user/password?? This is UNACCEPTABLE.
The people that run this country just don't GET IT.

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