RE: [registrars] Payments for multi year registrations.
Bob, I think you are way off base here. Frankly, I don't think any Registrars still pay only a year at a time, as there is a negative incentive to do so. With the Registry prices rising each year, a Registrar would be crazy to not pay it all the years up front, as their costs are only increasing every year. That said, although we don't do it, I know some Registrars offer a registration period longer than 10 years. I think that is perfectly acceptable for them to do so as a business model. If a client wants to buy a 100 year Registration, and they enter into a contract with a Registrar to do so, I see nothing wrong with that. The client is making a choice and the Registrar a commitment to renew the registration for that period of time. Sounds good to me. Registrars are supposed to have different business models. That is what makes us competitive and different. Rob. -----Original Message----- From: owner-registrars@gnso.icann.org [mailto:owner-registrars@gnso.icann.org] On Behalf Of Robert F. Connelly Sent: Tuesday, May 29, 2007 1:50 AM To: Registrars Constituency Subject: [registrars] Payments for multi year registrations. Dear Members: Those of us who were on the ill fated "Code of Conduct Task Force" felt that there should be a requirement that registrars taking multi year registrations should pay the registry immediately for the full registration paid for by the registrant. Over the years, we have had some vigorous debates over this issue in the RC meetings. To me, it was analogous to taking out a "twenty pay year" life insurance policy and paying the broker for the first ten years -- with the broker paying the insurance company a year at a time. When we had a run of five and ten year fraudulent registrations a couple of years ago, I was able to see the point of putting through the first year registration and waiting long enough for the chances of a Chargeback to elapse before paying for the full contract. I can see two incentives for delaying payments beyond the chargeback issue, 1. building cash flow and 2. the expectation that registry fees would go down with time. I certainly had expected them to do so. Those of us in Core thought the six dollar fee to Verisign was very excessive. However, not only have the registry fees *not* gone down (except .net), they have gone up. In addition, a very hefty ICANN fee has been added. Registrars holding back on full payments for multi year registrations will be hit with a shortfall at some point. Since the RegisterFly.com problem, we can all see the risks of building cash flow by such methods. Some day there will be a day of reckoning. Regards, BobC
http://www.allheadlinenews.com/articles/7007482710 Mountain View, CA (AHN) - VeriSign Tuesday announced the resignation of CEO Stratton Sclavos, a 12-year veteran of the Internet company, said VeriSign "can benefit from new leadership."
At 03:51 PM 5/29/2007 Tuesday +0000, Rob Hall wrote:
Frankly, I don't think any Registrars still pay only a year at a time, as there is a negative incentive to do so.
Dear Rob: That's the way it occurred to me. Glad to hear that it's a thing of the past.
With the Registry prices rising each year, a Registrar would be crazy to not pay it all the years up front, as their costs are only increasing every year.
That said, although we don't do it, I know some Registrars offer a registration period longer than 10 years. I think that is perfectly acceptable for them to do so as a business model.
If a client wants to buy a 100 year Registration, and they enter into a contract with a Registrar to do so, I see nothing wrong with that.
It never occurred to me that the RAA would permit taking registrations for more than ten years. I guess I need to read it again. The ten year figure is not good idea. We inherited it from IANA. While we are permitted to accept a registration for ten years, as a practical matter we can only renew for nine years. If we renew even a day before expiration, we can only add nine years. The renewal periods for Trademarks in many countries is ten years. Some Trademark holders would like to synchronize domain name renewals with Trademark renewals. Under the present system, the registrant must renew for nine years, hold back the fees for one more year and then renew again for one year (manually?) some time in the first year of the renewal. Too easy to forget;-} Regards, BobC
Rob Hall wrote:
Bob,
I think you are way off base here.
Frankly, I don't think any Registrars still pay only a year at a time, as there is a negative incentive to do so. With the Registry prices rising each year, a Registrar would be crazy to not pay it all the years up front, as their costs are only increasing every year.
That said, although we don't do it, I know some Registrars offer a registration period longer than 10 years. I think that is perfectly acceptable for them to do so as a business model.
If a client wants to buy a 100 year Registration, and they enter into a contract with a Registrar to do so, I see nothing wrong with that.
I guess it depends on what you mean by "nothing wrong with that". Personally, from a business standpoint it doesn't make any sense and that even assumes that "this thing of ours" is around in even, say, 28 years. Actually, it's a really bad idea (but then so is paying a certain registrar what is it, $108/year for the right to display ppc ads with the hope that a name can *legitimately* have enough traffic to justify that type of, um, gamble.) Anyway, if we are talking about Network Solutions, (which was sold to General Atlantic for $800 million according the the WSJ,) this is what the fine print says if you choose the 100 year option at $999: "100 Year Domain Service - Network Solutions will register your domain name for the maximum term available at the underlying domain registry and then, as long as your domain is registered with us, we'll add additional years to that registration on an annual basis for a total of 100 years of registration service from the date of your purchase. Service is non-transferable and non-refundable." (snip) "What if I transfer my domain name to another registrar? It is important to note that your pre-paid 100 Year Domain Service is provided exclusively by Network Solutions for you, and will terminate upon any transfer of your domain name to another registrar, with no refunds. The number of registration years that transfer to a new registrar will be the current term of the registration at the time of transfer, as reflected in WHOIS." Larry Erlich http://www.DomainRegistry.com -------------------------------------------------------- DomainRegistry.com Inc. ICANN Accredited Registrar * Since 1996 215-244-6700 erlich@DomainRegistry.com --------------------------------------------------------
The client is making a choice and the Registrar a commitment to renew the registration for that period of time. Sounds good to me.
Registrars are supposed to have different business models. That is what makes us competitive and different.
Rob.
-----Original Message----- From: owner-registrars@gnso.icann.org [mailto:owner-registrars@gnso.icann.org] On Behalf Of Robert F. Connelly Sent: Tuesday, May 29, 2007 1:50 AM To: Registrars Constituency Subject: [registrars] Payments for multi year registrations.
Dear Members:
Those of us who were on the ill fated "Code of Conduct Task Force" felt that there should be a requirement that registrars taking multi year registrations should pay the registry immediately for the full registration paid for by the registrant.
Over the years, we have had some vigorous debates over this issue in the RC meetings. To me, it was analogous to taking out a "twenty pay year" life insurance policy and paying the broker for the first ten years -- with the broker paying the insurance company a year at a time.
When we had a run of five and ten year fraudulent registrations a couple of years ago, I was able to see the point of putting through the first year registration and waiting long enough for the chances of a Chargeback to elapse before paying for the full contract.
I can see two incentives for delaying payments beyond the chargeback issue, 1. building cash flow and 2. the expectation that registry fees would go down with time. I certainly had expected them to do so. Those of us in Core thought the six dollar fee to Verisign was very excessive.
However, not only have the registry fees *not* gone down (except .net), they have gone up. In addition, a very hefty ICANN fee has been added. Registrars holding back on full payments for multi year registrations will be hit with a shortfall at some point. Since the RegisterFly.com problem, we can all see the risks of building cash flow by such methods. Some day there will be a day of reckoning.
Regards, BobC
participants (4)
-
Larry Erlich -
Paul Stahura -
Rob Hall -
Robert F. Connelly