RE: [registrars] RE: eNom WLS position; word document copy attached

["Bhavin Turakhia" <bhavin.t@directi.com>]

> I believe with a higher cost, the financial risk is greater for
> speculators while at the same time the cost is relatively insignificant
> to someone who actually wants to use the name.  How high would the cost
> need to be?  Is $40 enough?  Would $30 be enough?  I don't  know but I
> personally believe that the registry price needs to be several times

what you mean here is the FINAL price to the end consumer should be higher,
which means the REGISTRARS price should be higher and NOT the Registry's
....... please dont mix two issues. By having a high registry price you
REDUCE Registrar margin. By having a HIGH REGISTRAR price you achieve what
you want to achieve - ie increase financial risk for the speculators


> > Gomes suggests: "Depending on the value of the name, I would
> > think there is
> > lots of room to play on your side.  There certainly seems to
> > be plenty of
> > demand.  In fact, I would think that you as a registrar would have the
> > chance to make even better margins than we will."  We

I obviously disagree to this too. There are two models to costing - VALUE
MINUS and COST PLUS. Commodities which have standardised automated processes
and minimal product differentiation are always sold at COST PLUS.

By CHUCKS argument as you state that "Depending on the value of the name,
there is lotsa room" - I would disagree. If Chucks statement were correct
then maybe the Registrar who currently renews SEX.COM, or BUSINESS.COM
should charge somewhere around $100,000 for renewal. However I am sure
SEX.COM would find someone else if their renewal price was differentially
larger than any other Registrars

Similarily a WLS subscription is exactly the same purchased through any
Registrar, and therefore I dont see margins greater than a couple of dollars
(probably lesser than what we make on domain names today) possible.

Best Regards
Bhavin Turakhia
CEO
Directi
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