Since the wholesale price of domains are 6 dollars to registrars, looks like godaddy and all the others charging 6.00 or less will be troubled when domains go up in price.

Domains are going up by 7% over the next four years.
So if you do the math and take just godaddy for example, If go daddy has millions of domains registered at 6.00 for a sales gimick, now add on 7% to the bottom line and you get a much higher overhead.

This is not good for the real cheap domain guys.

For the people who actually charge 10.00 - 25.00, it will still hurt, but at least they are still making a profit.

For all the cheap guys selling domains at wholesale prices, they either have to increase their price to adjust the increase or take a bigger hit.
I'm just going over this in my head and laying it out there for you to see and make comments on.
I could be reading this wrong but what do you think?

If the contract is finally approved by the one body over ICANN: the US Department
of Commerce.

Yes. Let's hope DoC get some nads and put a stop to it. It's our only hope.

Yes. Let's hope DoC get some nads and put a stop to it. It's our only hope.

Not really. At least one group will continue its litigation with ICANN.

IIRC, at least one US congressman is seeking an inquiry into this as well. :D

Is 7% worth getting upset over?

7% of $10,000 is a greal deal of money. 7% over $9.00 is not

That's not the point AT ALL.

It doesn't cost ANYWHERE NEAR $7 for the service Verisign provides.

OpenSRS publicly offered to run the .com registry for $2 per domain.

If you haven't noticed, everywhere else in the computer and electronics world (apart from phone services) the price of things go DOWN over time, while performance INCREASES.

Verisign is already milking a cash cow, and has the audacity to INCREASE prices?

I bet if your electricity and water bills started going up 7% EVERY YEAR, for no good reason other than the contract says it can, you'd be upset.

This is NO DIFFERENT.

It not the cost per consumer that's the problem. Mulitply 7% of $6 x the number of domains in .com - that is cash going straight to Verisign's profit line BECAUSE ICANN IS LETTING THEM GET AWAY WITH IT. No other reason.

And it's not 7% one time, it's 7% EVERY YEAR with a couple of exceptions.

Stop being a Verisign apologist.

Beebadeeba >> thank you for your input. However:

- are you sure about 'ANYWHERE NEAR'? Do you know exact numbers how much it costs to run a root DNS *alone* for the most important tld in the world?
- I would like to see a link to the public offer of OpenSRS;
- are you sure OpenSRS is able to provide the same top-notch support to registrars Verisign provides now?
- etc etc etc...

Don't get me wrong. I like buying cheap too. However, I don't like that some Arizona cowboy is plucking my brains.

The true reason said cowboy is so anti-Verisign is that he'll lose his meaty part of the domain aftermarket pie if the contract will be approved. And the aftermarket is where his true profits lie... Sure, he don't want it go away, so he's starting all this PR campain based on half-truth.

Stop being a GD apologist.

>- are you sure about 'ANYWHERE NEAR'? Do you know exact numbers how much it costs to run a root DNS *alone* for the most important tld in the world?

It's not the Root DNS we're talking about. Verisign MANAGE that on a different contract. This is the .com TLD.

>- I would like to see a link to the public offer of OpenSRS;

http://www.icann.org/shanghai/captioning-afternoon-30oct02.htm

Elliot Noss:

"Thank you, Mr. Chairman....

But in case there is any concern or hesitation in that regard, if any of the registry contracted parties are unhappy with price, the central term in any such contract, and are willing to rebid or reopen some of the registry contracts, specifically Tucows will put an offer on the table at a $2 a name registry price.

So I would like that to be very clear."

>- are you sure OpenSRS is able to provide the same top-notch support to registrars Verisign provides now?

Well you want me to prove stuff so how about YOU prove Verisign's "top notch support".

This isn't rocket science, by the way, it's a VERY SIMPLE flat file database.

Verisign makes BUCKETLOADS of money with no-bid govt contracts. This one is just one of many.

>The true reason said cowboy is so anti-Verisign

Said cowboy? Who is this you're refering too?

>so he's starting all this PR campain based on half-truth.

And you proof of "half-truth" is?

Verisign and ICANN are masters of spin. Beware.

thats bad news
we looking to have domains by 5 or 4 $ not more

(putting on my flameproof suit...)

I would like the price of domains to go up. There are far too many domains that aren't being put to any good use other than generating pay-per-click dollars. If a .com/.net/.org domain cost $100 a year ($5 or $10 for .orgs that belong to non-profit organizations and for domains that are the owner's legal name) serious users would still be glad to pay, and many domains woyuld become available.

Don't give the $$$ to verisign, though. Give it to someone deserving.

(insert flames here):uzi: :crazy:

Except for the best domains which are generating more than $100 a year in ppc income :(

I'll call that "putting to good use" :)

(putting on my flameproof suit...)

I would like the price of domains to go up. There are far too many domains that aren't being put to any good use other than generating pay-per-click dollars. If a .com/.net/.org domain cost $100 a year ($5 or $10 for .orgs that belong to non-profit organizations and for domains that are the owner's legal name) serious users would still be glad to pay, and many domains woyuld become available.

Don't give the $$$ to verisign, though. Give it to someone deserving.

(insert flames here):uzi: :crazy:

UP?

hellls no, it needs to be cheaper

Maybe I'm missing the costs involved here... but this is what I don't understand.

eNom buys a domain name from Verisign for $6.00 and then pays a $0.25 ICANN regulatory fee. They add on all these free extras like email & URL forwarding, Dynamic DNS, rudimentary website creator, "name-my-map", etc. etc. They provide me with nameservers to use, a flexible reselling system, domain name control panel, and support.

And eNom makes about 70 cents a domain name off of me.

So, what costs Verisign $6.00? Yes they maintain the registry, and the global nameservers, but how can Verisign justify making almost NINE times what eNom makes per domain name?

I mean if I have a problem with my domain name, I can't call Verisign for support.

Maybe I'm missing the costs involved here... but this is what I don't understand.

eNom buys a domain name from Verisign for $6.00 and then pays a $0.25 ICANN regulatory fee. They add on all these free extras like email & URL forwarding, Dynamic DNS, rudimentary website creator, "name-my-map", etc. etc. They provide me with nameservers to use, a flexible reselling system, domain name control panel, and support.

And eNom makes about 70 cents a domain name off of me.

So, what costs Verisign $6.00? Yes they maintain the registry, and the global nameservers, but how can Verisign justify making almost NINE times what eNom makes per domain name?

I mean if I have a problem with my domain name, I can't call Verisign for support.

This is an excellent question posed. Are they required to provide a comprehensive proposal on why the price increase is needed? Surely they cannot approve it without this most basic of things.

If you read the ICANN board members comments most of those who voted yes stated they wished they had more time to decide. The only assumption one could make is there was pressure in some form for them to vote the way they did. But I guess it could just be an added comment to make it seem like they really gave a flying flip and voted for the pay raise and additional world travel funds.

>So, what costs Verisign $6.00? Yes they maintain the registry, and the global
>nameservers, but how can Verisign justify making almost NINE times what eNom
>makes per domain name?

Well, you're on the right track, but don't be thinking Verisign maintain the global name servers! They maintain ONE root server, and the special secret-squirrel database server that feeds the root zone file (via encrypted authenticated link) to the OTHER root servers WHICH ARE MAINTAINED BY VOLUNTEERS.

So all that money Verisign is making from domain registrations pays for LESS that what you originally thought. So you're being screwed more than you thought. :^)

But you recognise you're being screwed, which is more than I can say for some members here. They're out buying a tub of vaseline.

Are they required to provide a comprehensive proposal on why the price increase is needed? Surely they cannot approve it without this most basic of things.

Sure they can. They are private company.

>So, what costs Verisign $6.00? Yes they maintain the registry, and the global
>nameservers, but how can Verisign justify making almost NINE times what eNom
>makes per domain name?

Well, you're on the right track, but don't be thinking Verisign maintain the global name servers! They maintain ONE root server, and the special secret-squirrel database server that feeds the root zone file (via encrypted authenticated link) to the OTHER root servers WHICH ARE MAINTAINED BY VOLUNTEERS.

So all that money Verisign is making from domain registrations pays for LESS that what you originally thought. So you're being screwed more than you thought. :^)

But you recognise you're being screwed, which is more than I can say for some members here. They're out buying a tub of vaseline.

Since you know all the answers how come no one is stopping it?

>Sure they can. They are private company.

Exactly. "Commercially sensitive".

>Since you know all the answers how come no one is stopping it?

I know the answer to that one too! Indivisual registrants (the ones being screwd here) have ZERO CONTROL over ICANN. Under the original white paper, internet users were to have the ower to elect a set of ICANN board members. Unfortunately the ring-in borad members originally put there to set things up (with limited tenere) conveniently changed the regs later on allowing them to boot the elected board members off and never replace them. Some of those original board members who were only suppoed to be there for a couple of years max are STILL ON THE BOARD 7 years down the track.

ICANN has been captured by big corporate influence (telcos and intelelctual property crowd). This contract is the result of that capture. DoC is our only help for salvation.

If you care, and are in the USA, email or fax or write or phone your elected rep's and tell them what is going on.

If you're outside the USA, sit back and hope DoC do the right thing.

Considering the current US Administration is severely pro-corporate, I can't see there being any good news. :^(

Remember - Verisign is to the Internet what Enron is to energy, and Halliburton is to war. NOTHING BUT BAD NEWS