FW: [registrars] automatic renewal policy?

["Eric Brown" <ebrown@bulkregister.com>]

We agree with Rick's view on this issue.  After receiving the December 19th
Advisory from the Registry, we mistakenly believed that this was a
non-issue.  We interpreted the notice to say that we would not be billed
until after the 45 day grace period, and that our credit limit was not
affected.   We spoke with the Registry at length about this issue, and
strongly voiced our opinion that the December 19th advisory was misleading.
We requested that they reconsider their policy and a clarification be sent
to the registrar mailing list.  They agreed to send the clarification but
declined to re-evaluate the impact of the policy itself.

It should be clear to every registrar, that to take advantage of the grace
period, the registrar may be required to more than double their available
credit limit.   As John Tai pointed out this could involve tying up hundreds
of thousands of dollars, and I would argue in some cases much more than
that. This clearly puts small registrars at a great disadvantage, as there
are only a couple of registrars that can comfortably take advantage of the
entire grace period.  Even a well capitalized small registrar is not going
to want to tie up that much capital.

I look forward to hearing from other registrars on this issue.

Eric Brown
Director of Registrar Operations
BulkRegister.com



-----Original Message-----
From: owner-registrars@dnso.org [mailto:owner-registrars@dnso.org]On
Behalf Of Rick H Wesson
Sent: Thursday, January 11, 2001 3:59 PM
To: John Tai (Dotster Inc)
Cc: Registrars@Dnso. Org
Subject: Re: [registrars] automatic renewal policy?



john,

my kudos to VSGRS for figuring out how to take advantage of the 'float'

IMHO we need to provide direction to VSGRS on how the policy of automatic
renewal should work. for instance not debiting the renewal until the 45
day grace peroid is up.

-rick


On Thu, 11 Jan 2001, John Tai (Dotster Inc) wrote:

> How are registrars dealing with the significant additional and immediate
demand
> for cash caused by NSI's automatic renewal policy?
>
> Take for example a registrar with 500,000 domains up for renewal, of which
65%
> don't renew but are automatically renewed by NSI/Verisign.  That would be
65% X
> 500,000 /360 days X 45 days grace period X$6.00 =$243,750 that would
constantly
> be "cash in transit" and would be indefinitely tied up.
>
> John S. Tai
> jtai@dotster.com
> Dotster Inc.,
>
>