[registrars] Re: Registrars Collecting on Multi-Year Registrations

["Rob Hall" <rob@momentous.ca>]

Actually, it is simpler than that. 

The registrar doesn't need to do anything but not delete the domain for 4 
years.  Because the Registry automatically renews the domain, and charges 
the Registrar, all one needs to do is not delete the domain. 

Of course, the Registrar needs to be clear in their contract that they pay 
the Registry in this fashion. 

On the plus side, are 

1) Better customer service
2) Reduced liability for fraud and changed minds
3) And yes, last but not least, the Interest earned on the money (that is 
typically held in a deposit account) goes to the Registrar, not the 
Registry. 

I would be happy to reconsider should the Registry implement a system that: 

1)  Allows a Registrar to delete a domain, and returns to the Registrar a 
credit for any remaining full years (after all, the Registry gets to sell 
this domain again for the same time it has already sold it) 

2)  Allows a Registrar to delete a domain for Fraud and chargeback and 
obtain a full refund 

3)  Charges a Registrar less for multi-year registrations, recognizing that 
interest is earned by the money sitting in the Registry account  (for 
example, on a 10 year registration, if the Registry were to buy an annuity 
that paid out $6 per year, it would only them less than $45 (or 4.50 per 
year).  Why should the Registry reap all the rewards of Interest on service 
not yet delivered. Registrars can use this Interest to offer a lower cost 
registration to consumers. It would also encourage us to sell multi-year 
registrations. 

Rob. 

 

David Wascher writes: 

> So Rob,
> If a customer wants a domain for 4 years does the customer pay upfront for
> the 4 years? Then the registrar system has to keep track and do a renewal
> every year on the date of expiration. 
> 
> This allows the registrar to keep the registration fee of $18 as a float for
> 3 years instead. If the registrant transfers the domain the first year what
> happens to the other 3 years worth of money? 
> 
> This may be a business model but practical for who the registrar or the
> registrant? 
> 
> David 
> 
> ::-----Original Message-----
> ::From: owner-registrars@dnso.org [mailto:owner-registrars@dnso.org]On
> ::Behalf Of Rob Hall
> ::Sent: Wednesday, September 04, 2002 2:26 PM
> ::To: registrars@dnso.org
> ::Subject: RE: [registrars] Registrars Collecting on Multi-Year
> ::Registrations
> ::
> ::
> ::This is a valid business model for many reasons.
> ::
> ::It is not against our Registry contract, and should not be until the
> ::registry model changes.
> ::
> ::Rob.
> ::
> ::-----Original Message-----
> ::From: owner-registrars@dnso.org [mailto:owner-registrars@dnso.org]On
> ::Behalf Of Mike Lampson
> ::Sent: Wednesday, September 04, 2002 1:17 PM
> ::To: registrars@dnso.org
> ::Subject: [registrars] Registrars Collecting on Multi-Year Registrations
> ::
> ::
> ::All,
> ::
> ::This is a terrible business practice as documented by VeriSign.
> ::Prohibition
> ::against such practices needs to be in our Code of Conduct.
> ::
> ::Regards,
> ::
> ::Mike Lampson
> ::The Registry at Info Avenue, LLC
> ::
> ::
> ::
> ::----- Original Message -----
> ::From: "VeriSign Global Registry Services"
> ::To: VeriSign Registrars
> ::Sent: Wednesday, September 04, 2002 12:42 PM
> ::Subject: Registry Advisory: Multi-Year Registrations
> ::
> ::
> ::To All Registrars:
> ::
> ::As you know, running effective renewal campaigns depends upon keeping
> ::accurate customer data, including contact information for reaching them by
> ::e-mail, direct mail, or phone. Equally important is ensuring expiration
> ::dates between VeriSign Registry and registrar are consistent.
> ::
> ::The sale of a multi-year registration that is registered with VeriSign
> ::Registry for only one year will create a discrepancy in the
> ::expiration date,
> ::meaning you have to manage separate expiration dates for registrations,
> ::adding cycles to your renewal efforts and increasing the chance that a
> ::registration may be inadvertently deleted.  Additionally, registrants who
> ::have paid for a multi-year registration but later become aware that they
> ::only received a one-year registration may question the
> ::registrar's right to
> ::engage in such a transaction. Indeed, processing multi-year
> ::registrations as
> ::one-year registrations will create a liability on the part of the
> ::registrar
> ::should the registrant choose to transfer its registration to another
> ::registrar.  The transfer process causes the discrepancy to surface because
> ::the full registration term purchased by the registrant will not carry
> ::forward to the new registrar. All registrars are required to process all
> ::domain name registrations and renewals through VeriSign Registry with the
> ::same term length as was agreed to by the registrant.
> ::
> ::All registrars should periodically crosscheck their data with VeriSign
> ::Registry data available in the weekly Domain Name reports.  Our Customer
> ::Service Representatives are always available to assist you with any
> ::questions you have on discrepancies between your registration data and
> ::expiration dates with VeriSign Registry. If you have any
> ::questions regarding
> ::this Registry Advisory, please contact Customer Service
> ::
> ::Chris Sheridan
> ::Manager, Customer Service
> ::VeriSign Global Registry Services
> ::www.verisign-grs.com
> ::
> ::
> ::
> ::
> ::
> ::
> :: 
>