Re: [ga] The facts about professional registrants (domainers)

["kidsearch" <kidsearch@xxxxxxxxxxxxx>]

All points very well made when talking about doamian speculators and not
domain tasters. I've done my share of specualtion and agree about all of it
when discussing domainers who pay for their registrations. Domain tasters
however are beginning to outnumber domainers and they do hinder the
registration process and TAKE rather than pay for names. Getting rid of the
5 day grace period will eliminate the tasters and leave the true doaminers
to what they do.

Chris McElroy aka NameCritic
http://icann.thingsthatjustpissmeoff.com

----- Original Message ----- 
From: "Prophet Partners Inc." <Domains@xxxxxxxxxxxxxxxxxxx>
To: <ga@xxxxxxxxxxxxxx>
Sent: Sunday, September 03, 2006 7:07 AM
Subject: [ga] The facts about professional registrants (domainers)


> Hi Michael,
>
> We'd like to dispel some misperceptions and point out some facts using
your
> analogy of launching a new TLD compared to building a city.
>
> 1) Professional registrants (hereinafter referred to as domainers) do not
> TAKE all the prime real estate of a new TLD. Domainers PAY for it via
annual
> registration and renewal fees.
> 2) These annual registration and renewal fees are paid in advance. This
> means that the registry has access to and use of that money, before
> providing services to domainers for the money received. The registry earns
> interest off of that float from day 1 of the registration. Domainers
provide
> the majority of the initial revenue base and operating capital for the
> registry to attract new registrants, allowing the registry to diversify
the
> source of revenue and income. Most domains held by domainers are renewed
> year after year. As a result of domainers,  the registry benefits from a
> RELIABLE source of RECURRING revenue and income.
> 3) Domainers take on higher degrees of risk by being among the first to
buy
> into an unproven investment. It's the same as when American pioneers
settled
> into the wilderness. Many died along the way, but some also had great
> success. Similarly, not every domain registered by domainers is profitable
> and any seasoned domainer has their share of losers, for which they paid
> registration fees. The large sales that you hear about in the media are
the
> exception, not the norm. It is estimated that large firms such as
BuyDomains
> only turn over 1-2% of their inventory each year. The rest goes unsold
while
> they continue to pay annual renewal fees. Using basic investment theory,
the
> higher the risk, the higher the potential reward and vice versa. Think of
> domainers speculating in a new TLD as venture capitalists funding a new
> startup venture, in this case a new registry.
> 4) Domainers POSITIVELY impact the ability to attract new registrants by
> creating the perception that there is demand and a bright future for the
new
> TLD. Prospective registrants feel more confident in registering a domain
in
> a new TLD knowing that others have already made a monetary commitment to
the
> TLD. Would you open a grocery store in a neighborhood that had planned
> housing developments or in a deserted area with uncertain prospects? In
the
> absence of the domains registered by domainers during a new TLD launch,
the
> new TLD would look like a ghost town. We find it hard to believe that a
> deserted TLD would attract many new registrants. If you need proof, just
> look at the .pro TLD. There's plenty of available .pro domains with top
> quality keywords. Why aren't more non-domainers registering .pro domains?
> 5) Domainers by putting up for sale signs of their domains increases
> exposure for the TLD. The registry freely benefits when people see and
> inquire about the empty land (unregistered domains) next to land that has
> already been claimed (registered domains with a for sale sign).
> 6) Complaining that domainers PAYING registration fees on a registered
> domain is worse than having an unregistered domain WAITING for a new
> registrant is absolutely ludicrous. If we're landlords, we'd much rather
> have someone there paying rent, than having an empty space that generates
> zero revenue and income, in the hopes that someone will come along and pay
> the SAME amount.
> 7) The bottom line is domainers do not COMPROMISE the launch of a new TLD,
> but instead STIMULATE its growth.
>
> Sincerely,
> Ted
> Prophet Partners Inc.
> http://www.ProphetPartners.com
> http://www.Premium-Domain-Names.com
>
>
> ----- Original Message ----- 
> From: "Michael D. Palage" <Michael@xxxxxxxxxx>
> To: <ga@xxxxxxxxxxxxxx>
> Sent: Thursday, August 31, 2006 10:19 PM
> Subject: [ga] Combined Response - Tiered (Variable) Pricing
>
>
> <snipped>
> >
> > Although I generally avoid using property analogies in connection with
> > domain names, launching a TLD is a lot like building a city where the
> > government needs some discretion with regard to zoning and planning. If
> > a registry launch is compromised by professional registrants that take
> > all the Class "A" office space and put for sale signs in the windows,
> > that negatively impacts the mayors ability to attract new inhabitants
> > into the city and build sustainable and diverse revenue base.
> >
> > Best regards,
> >
> > Michael D. Palage
>
>
>
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