ICANN/GNSO GNSO Email List Archives


<<< Chronological Index >>>    <<< Thread Index >>>

Re: [ga] Alternative Domain Name Distribution Models

  • To: <ga@xxxxxxxxxxxxxx>
  • Subject: Re: [ga] Alternative Domain Name Distribution Models
  • From: "Prophet Partners Inc." <Domains@xxxxxxxxxxxxxxxxxxx>
  • Date: Tue, 11 Sep 2007 16:15:10 -0400

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.

Prophet Partners Inc.

----- 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


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


Best regards,



<<< Chronological Index >>>    <<< Thread Index >>>