[ga] RE: [icann-delete] Market research report on WLS pricing
Title: Message Ron,
There
are so many errors in your document that it makes my head
spin,
but
one that I'd like to correct now is that eNom's "club-drop" fee
is
$2,500
per month (and limited to 10 participants), not $5,000
per
month as you report. I'll be correcting your other
misconceptions
in a
future email but I'd also like to say now:
1)
Registrars will NOT make money on WLS due to fierce price competition among
us,
no
matter how many times you say "you guys will be able to charge $99".
Most
of the volume will be done by the few registers that are
efficient
enough
to charge $1-2 over cost. If any registrars (or, heck, customers) are
reading this,
I'd
like to announce that eNom will charge very near cost if WLS is
implemented.
Many
registars probably won't even offer it because they know they won't
make money on it.
Most
only offer registrations now because it leads to other sales. I
doubt
that
the few WLS subscriptions sold to mainstream customers will lead to
much,
if any, other sales.
Also,
the price we registrars will be able to charge has nothing
whatsoever
to do
with the "value" of the name attached to the WLS
subscription.
In
fact, the subscription can be changed to any of 3 different names at any
time!
Your
other argument is based on the stats for the top registrars
who
command fantastic brands and have large marketing budgets in
order
to be
able to charge high margins on registrations. The WLS
market
will
be much different. It will not be as brand-sensitive since most non-FUD
WLS
sales,
will go to sophisticated purchasers
(not
the mainstream customers you purport) and therefore the majority
of the
market will go to the lowest priced producer,
especially since registrars will have no other
differentiation.
Also,
I assume you've noticed (since you putout the, I must say
quality,
"State
of the Domain" report) that the largest registrars, who
charge
the
most per registration are losing market-share to the
efficient,
low-cost producers, dispite their brands.
Most
of the WLS subscriptions will go to sophisticated
users/registrars
(the
people who do most of the volume nowadays with the current
setup)
who
know for sure which names will be dropping, and as soon as they know
it,
will
grab the WLS subscription for it. Only stupid people will risk
(blow)
$40 ($99 in your document, yea, right) on names
that probably won't drop.
2)
Just because you charge X for SnapBacks, doesn't mean
Verisign
should
impose that price on all of us. If, you believe as you say, that
about 1.3 million
WLS
subscriptions are sold, and if your current wait-list system cost $3 million
(you
got
ripped off if it did), then I suggest a price less than $3/1.3 per WLS
subscription.
Paul
eNom
Inc.
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