I can say for us, that we expect some amount of "reasonable" growth in ICANN. But increasing the per-domain cost by USD$0.10 *and* tacking on a USD$19,000 fixed fee (which for us equates to another USD$0.13 per domain) means that our per domain costs are going up from around USD$0.19 per year to USD$0.42. Yes, the size of the fixed fee is an issue. The smaller the Registrar, the bigger the issue. But the overall issue to us is that our ICANN "taxes" are doubling. As a larger registar, the percentage increase you see may be smaller, but I bet the total increase in your out-of-pocket fees to ICANN are *LARGER*. With millions of domains, an extra 10 cents each is no "chump change". In my personal opinion, any growth in ICANN's budget that increases the amount collectively paid by Registrars more than 25% per year is unacceptable - and I think I'm being generous at 25%. If there are truly fixed costs to ICANN for maintaining each accreditation, I can accept some amount of increase in the fixed fee component of the "tax". I would apply the same growth cap to the fixed fee component as I would to the entire fee structure however. In closing, I think we as a Constituency should not tell ICANN that its growth must be constrained by the growth in taxes paid by us. We need to stress that we are fighting having ourselves be the pocket that is picked. Our pockets are nowhere near as deep as ICANN seems to believe they are. Regards, Mike Lampson The Registry at Info Avenue, LLC -----Original Message----- From: owner-registrars@gnso.icann.org [mailto:owner-registrars@gnso.icann.org]On Behalf Of Tim Ruiz Sent: Thursday, May 27, 2004 3:39 PM To: 'JP'; 'Larry Erlich'; 'Bruce Tonkin' Cc: 'Registrars Constituency' Subject: RE: [registrars] Regarding taxes JP, The increase in your cost of registration is not the full transaction fee plus per-registrar fee in this budget. You are currently paying something to ICANN so the *difference* is the real increase in your costs. And, based on history, surely you worked increases in ICANN fees somewhere into your business plan and budget when figuring your true costs and setting your prices. It still seems to me that the per-registrar fee is the issue we need to discuss and find a reasonable resolution to that the majority of us can agree on and present to ICANN. Tim -----Original Message----- From: owner-registrars@gnso.icann.org [mailto:owner-registrars@gnso.icann.org] On Behalf Of JP Sent: Wednesday, May 26, 2004 11:49 AM To: Larry Erlich; Bruce Tonkin Cc: Registrars Constituency Subject: Re: [registrars] Regarding taxes Larry:
That is a business choice that they have made. If their costs go up they need to reevaluate that choice. That is not the same as a small registrar having to pay quad the fees.
€€€ Can you explain this to Me, because I see it exactly the other way arround.
The only way that the increase in transaction fees will kill a large registrar is if they have contracts with customers that specify their cost will always be, say $6.50 (or whatever).
€€€ I can not speak for other registrars, but it will badly hurt us.
Another example of a registrar that might need to eat the fee might be Godaddy. The site advertises $7.95 and $8.95 for transfers/new registrations. If a per domain fee of .25 is added, they can't maintain those prices and those magic numbers.
€€€ Please, visit our website and check our prices.
I think that if a registrar makes a choice to sell domains so close to the cost, then take a risk if fees are increased. That is a risk of the business model they have chosen. It is not the same as, once again, a small registrar being hit with an extra $19,000.
€€€ Again how come it is unfair only one way. There is an increase on the variable fee, and it is substantial, as Kurt said yesterday, MOST of the funds come from the increase in the PER TRANSACTION fee. What you are advocating for is that ALL the funding should come from a per transaction. I not only think it is unfair, I can tell you it will completely cripple our business, and our ability to provide a large number of customers with registrations at an affordable price, customers, that because of the increase might not be able to pay for those registrations... Our "choice" of model has always been to provide more for less, and it proved successful. I do not think your idea of killing our model in favor of smaller, "boutique" , "specialty" or even non registering registrars is fair; As for the registrars that have a VIABLE, REAL, registration business going on, there is relief from the fee. Regards, JP
The bottom line is that there is an large overall increase in fees for registrars as a whole, and nobody (big or small) is happy with the increase they have to pay individually.
Regards, Bruce
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