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Forum Index · Search Engine Forums · SEF Community and Networking · Members Lounge · Variable Pricing on Domain Renewals?
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gamiziuk
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Posted: 2006-Aug-27 05:21
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Very important thread for all webmasters on WMW:

[link]

One can read the proposed contracts at:

http://www.icann.org/announcements/announcement-2-28jul06.htm


eek

[ Message was edited by: bhartzer 08/31/2006 01:42 pm ]



[ Message was edited by: bhartzer 08/31/2006 01:42 pm ]





Curt
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Posted: 2006-Aug-27 05:28
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That is truely scary!!!



JQ
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Posted: 2006-Aug-27 07:28
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Well, I'm not registered there and refuse to do so just to check a thread linked.

Could you please address the issue here so we can discuss it?



Curt
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Posted: 2006-Aug-27 12:33
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Basically ICANN is opening up a loop hole allowing various registrars the freedom of charging what they want per each domain on a per basis condition.

Let's say you get a domain called www.jeromeswebstuff.com and it becomes reasonably popular or perhaps very popular. When you originally buy the domain, it may have cost $8 to $25 depending on the registrar. Now that your registrar determines that your domain is worth a lot more to you, they decide to basically extort money out of you by charging a renewal fee of $10,000 per year. The domain registrar would be counting on you not wanting to lose the traffic you got to your site. ICANN's loophole could basically allow registrars to extort more money off of each site they determine has a valuable domain name.

Google.com had they not become their own registrar could have fallen victim to a registrar who might charge them $10,000,000 per year. As I said, ICANN is opening up a loophole potentially allowing extortion.

Of course, you would have to move to another registrar that wouldn't try to extort more money out of you.

Proposed contracts at:
[link]

ICANN's statements in the CFIT litigation regarding pricing caps on May 26th:
[link]
[link]

Public comments can be sent using the addresses at:
[link]
(be sure to send to all 3 email addresses for all 3 contracts, and also click the link in the email ICANN will send you to authenticate your email address, otherwise your comment doesn't get received)

Here's a comment posted at WMW thread:
An additional problem with the model of allowing unrestricted pricing is that it comes after companies and people have invested in a given gTLD as brand. As the proposal now stands, unrestricted pricing presents the opportunity to literally "price someone off their land".




Curt
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Posted: 2006-Aug-27 12:40
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This is a serious issue and the right people need to get involved

ICANN needs to get a flood of email sent to them quickly by all webmasters of this stupid decision making.

As another person puts it at WMW:
As stated ..comments are open at the ICANN til August 28th ..do not let this happen without expressing your opinion ..get in contact with your elected officials in your respective countries ..do the same with your media ..newspapers , radio and TV ..now ..pick up the phone and write emails ..post on fora ..any fora ..webmaster or tech ..whatever ..post on this item anywhere ..link back to here ..this thread ..and register your disapproval at the ICANN site and anywhere else you can ..explain it simply to your family and friends and anyone who'll listen ..in any language ..now ..before it's too late ...
That's this coming Monday!!! [Monday 08/28/06

Webmaster, site owners, etc., really need to get the word out fast. Send emails and post in as many forums as possible about this problem.

ICANN posted at: [link] the following:
A public comment period will remain open until 5:00 PM PDT/California, 28 August 2006. At that time the comments will be submitted to the Board of Directors for the Board to consider at its meeting on 13 September 2006.



gamiziuk
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Posted: 2006-Aug-27 15:23
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From what I understood, the policy change proposed enables ICANN to charge the exhorbitant fee, not just the registrars!




gamiziuk
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Posted: 2006-Aug-27 15:26
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From one of my own posts in the linked thread:

----------

This reminds me of days of the old .US domains. They used to be issued in the form of:
business-name.city.state.us
-and were supposed to be FREE to US residents.

But - anyone could apply to become a Delegated Manager - a Registrar for a City (control the 3rd level of the domain). A city registrar could charge whatever he wanted to issue domains to applicants that wanted the domain at the 4th level. You had no way to get around a City registrar if you wanted a domain in that city.

The major cities (New York, Philadelphia, etc.) got gobbled up by Delegated Managers/city registrars and would charge high fees for the domains. Some managers gobbled up entire STATES! (They applied as the registrar for every city in a state.)

It seems that many of the Delegated Managers/city registrars were individuals who were "insiders." Lets say - they were members of "certain boards" who controlled the .US domain at the time.

Thats why the old style .US domains did not develop much. (GREED)

The people who sit on Boards are not all "white knights."




Curt
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Posted: 2006-Aug-27 22:20
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See these reports:

For its part, VeriSign said it believes the suits are motivated by a new service it intends to introduce. Central Listing Service, or CLS, will enable registrars to bid on domain names on behalf of end users, with VeriSign getting a percentage of the final fees.

Ironically, it was another novel VeriSign service that sparked the dispute with ICANN that led to the settlement. VeriSign sued ICANN after it forced the company to shut down its NameFinder service, which directed users who mistyped domain names to a VeriSign-controlled site.

For complete article: http://www.ecommercetimes.com/story/47635.html

I finally got the “official” word from Vint Cerf of ICANN, “on the record”, who confirmed that my interpretation is correct, that differential/tiered pricing on a domain-by-domain basis would not be forbidden under the .biz/info/org proposed contracts. This means that the registries could charge $100,000/yr for sex.biz, $25,000/yr for movies.org, etc. if they wanted to—it would not be forbidden the way the proposed contracts are currently written. This would represent a powerful pricing weapon for registries, and a fundamental shift in possible domain name pricing, that could lead them to emulate .tv-style price schedules. It doesn’t mean they will necessarily do it, but it’s not forbidden. When a contract doesn’t forbid something bad, it implicitly allows it....

For complete article: http://www.circleid.com/posts/icann...nfo_org_domain/

...It can be used as a political weapon, too. If a registry disagreed with the views or content of a website for which they were the registry, they could raise the renewal price to $100 billion/yr. 10 years later, that website would not exist at that address, and nothing in the contracts would forbid this pricing behaviour. More likely, it would be used for profit maximization (if Google.com is a $100 billion company, "certainly they are benefiting from their domain name, and can afford our $1 billion/yr renewal fee" one might say -- see the net neutrality debate and tiered pricing for websites that phone and cable companies are pushing....). How far away is tiered domain name pricing??...

for complete article: http://www.icannwatch.org/article.p...6/08/24/1857218




Curt
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Posted: 2006-Aug-28 05:29
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I got this article from “George Kirikos” (www.kirikos.com) and his blessing to reprint it here:
“Tiered pricing coming to top-level domain names?”

Imagine, you've built a great website, and are on top of the world due to all the incoming visitors and sales revenues. Your competitors envy you, as do your neighbours. Your online brand has become very valuable, and when people think of widgets, the first website that comes to mind is your site. Life is good.

You open the mail, though, and see a renewal notice for your domain name that is $75,000/yr, instead of the $10/yr that you were used to. You call up your registrar, thinking “this must be a typo”. But, instead, you are told, “due to the success and high value you are receiving from your domain, the renewal fee really is $75,000/yr.”


Sounds impossible and outlandish? Not so, if proposed new top-level domain contracts are approved by ICANN.

With parallels to the network neutrality debate, ICANN is set to approve new registry agreements for .biz, .info and .org that do not forbid differential/tiered pricing on a domain-by-domain basis. The public comment period ends on Monday.

When ICANN's Board approved a highly controversial new .com agreement with VeriSign earlier in 2006 (which thankfully the Department of Commerce has yet to approve) as settlement for the SiteFinder lawsuit, other registries wanted to get the same spoils that VeriSign received, including www.cavebear.com/cbblog-archives/000263.html (presumptive renewal) and the ability to raise domain prices. VeriSign's price increases for .com would be capped at 7% per year, though. These new proposed contracts leapfrog VeriSign, and shockingly propose to remove all pricing caps entirely. The only protection existing domain registrants would have is the 6-month notice period, and the ability to renew their domains at the old price for up to 10 years from the present.

A loophole in the contract, which ICANN has confirmed exists would go even further and create an ominous scenario, though. It would not forbid registries from charging different renewal or registration prices on a tiered/differential domain-by-domain basis. This would be comparable to the .TV registry pricing model. Thus, for example, the renewal fee for Sex.biz could be raised to $100,000/yr, for movies.info $25,000/yr, for Google.org $1 million/yr, and so on -- whatever would maximize the profits of registries.

Registries have seen what DSL and cable companies are trying to do, to break network neutrality and charge discriminatory prices to maximize their profits at the expense of website operators (for example, charge higher rates to Google or Yahoo or Microsoft, for access to their subscriber base, knowing that Google, Yahoo and Microsoft are very profitable). Registries are very shrewd, and these new contracts would not forbid them from discriminatory pricing to emulate what ISPs would like to do.

If these flawed contracts are approved for .biz, .info, and .org, it would not be a huge leap to think that VeriSign might take advantage of the precedent, and attempt to achieve the same pricing power for .com and .net through future contractual negotiations with an ICANN that has routinely failed to protect domain registrants' interests.

Network Solutions CEO Champ Mitchell said that the .com deal “shocks the conscience.” These new contracts are infinitely worse, and create dangerous new precedents. Read over the contracts and public comments yourself, and then tell ICANN whether these new changes are acceptable to you. The deadline for comments is Monday.
—George Kirikos (author)


[ Message was edited by: Curt 08/27/2006 09:49 pm ]





Curt
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Posted: 2006-Aug-28 07:27
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Well, guess what, it gets worse:

Switching registrars in the hopes of paying less for a .com domain won't work. VeriSign sets the base wholesale price of a domain and the other registrars are forced to sell it at the new high price should VeriSign decide that your domain should cost more—according to George Kirikos.

ICANN really betrayed the consumers on this deal. This could be an anti-trust issue should it happen that Verisign decides it wants to be greedier.



g1smd
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Posted: 2006-Aug-31 01:06
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Related discussion over over there too.


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