Re: [ga] Pass through costs

[Karl Auerbach <karl@xxxxxxxxxxxx>]

On Sat, 18 Mar 2006, Hugh Dierker wrote:

> Are the registrars not able to raise their rates in response?

There is no legal reason why they can not raise rates.

However, registrars, unlike registries, are in a competitive marketplace 
in which price is, in the minds of many customers, the major 
differentiator.  So the registrars are going to end up holding to the same 
customer prices and absorbing the increase themselves.

If you take a look at my blog at 
http://www.cavebear.com/cbblog-archives/000239.html you'll see a note in 
which I calculate that the real cost of performing a registration at the 
registry level is under $0.02 rather than the $6 going to $7+7% price that 
ICANN is imposing for .com.

That works out to roughly $5.98 (going to $6.98+) of money that ICANN is 
taking out of our pockets each time we register a domain name.  When 
multiplied by all the domains in .com that works out to a boatload of 
money every year.

		--karl--