Re: [ga] Alternative Domain Name Distribution Models

["Prophet Partners Inc." <Domains@xxxxxxxxxxxxxxxxxxx>]

Hi Michael,

Giving away a product for free or at cost does not mean that there is no 
opportunity to make money. Companies like Lexmark, Epson, HP, Canon and 
Brother have successful business models selling cheap printers at near cost 
and earning the bulk of their income from replacement ink cartridges.
Likewise, it is important to bear in mind that registrars have been 
diversifying their income sources over the last few years. In some cases, 
domains are sold as loss leaders to open up opportunities for upsell 
products and services. Registrars can earn money from web hosting, web 
design, domain parking, WHOIS privacy protection, email services, shopping 
carts, SSL certificates, domain aftermarket sales, etc.
Sincerely,
Ted
Prophet Partners Inc.
http://www.ProphetPartners.com
http://www.Premium-Domain-Names.com


----- Original Message ----- 
From: "Michael D. Palage" <mike@xxxxxxxxxx>
To: <ga@xxxxxxxxxxxxxx>
Cc: "'Elisabeth Porteneuve'" <elisabeth.porteneuve@xxxxxxxxxxxx>
Sent: Wednesday, September 05, 2007 9:53 AM
Subject: [ga] Alternative Domain Name Distribution Models


> Elizabeth,
>
> ICANN was born against a back drop when there was a monopoly within the
> name space, as .COM, .NET and .ORG were king and NSI held the keys to
> all three. At that time ccTLDs provided no real alternative in the
> marketplace, although today .DE and .CN are the second and third largest
> TLDs in the world behind only .COM. So change can and does happen.
>
> Here is the reality of the marketplace, all the Big Registries seek to
> cut deals with the Big Registrars to get priority placement on the pull
> down menus or tick boxes on the registrar's home page. Much like in the
> retail marketplace, there is a limited amount of premium shelf space on
> that registrar's home page, and the big registries structure deals so
> that premium shelf space goes to the established brands or those willing
> to make it financially attractive to the registrars. The problem as
> identified in Danny's most recent example, is that some registries are
> not-for-profit and serve small communities. Thus they have a slim chance
> of ever appearing on GoDaddy's or TUCOWS homepage.
>
> This is why as in the case of .MUSEUM I believe the proposed alternate
> language strikes the proper balance between preserving the existing
> registry/registrar dichotomy and allowing a registry to represent and
> serve the interests of that community.
>
> Now while this further explanation may not address Elizabeth's specific
> concerns, it is important to discuss how the proposed recommendations
> that have been discussed in the registrar community will not address her
> concerns either. As previously mentioned, ICANN accredited registrars
> have advocated removing the restrictions regarding ownership of an ICANN
> accredited registrar by a registry. In the Google hypothetical discussed
> previously, the new Google registry would simply use the existing Google
> registrar. If the domain names were given away for free, it is highly
> doubtful that any ICANN competitive registrar would even bother
> providing an interface where the profit margin would likely be near
> zero.
<snipped>
> Best regards,
>
> Michael
<snipped>