Comments on: Domain Registration – Tiered Pricing http://www.jdsblog.com/2006/08/28/domain-name-tiered-pricing-2/ Empower Ideas Tue, 03 Aug 2010 15:57:38 +0000 hourly 1 http://wordpress.org/?v=3.0 By: jdrohn74 http://www.jdsblog.com/2006/08/28/domain-name-tiered-pricing-2/comment-page-1/#comment-318 jdrohn74 Tue, 29 Aug 2006 19:35:02 +0000 http://jdsblog.com/2006/08/28/domain-name-tiered-pricing-2/#comment-318 That is an excellent point. One that I didn't think of before you mentioned it. And the solution of long term leases is absolutely necessary in that environment as well as future domain sales. I think it will discourage some entrepreneurs/innovators from seeking online ventures, much like the current net neutrality conflict For the most part this is a hugely unregulated market which is still being capitalized on. How the Internet is changing.. That is an excellent point. One that I didn’t think of before you mentioned it. And the solution of long term leases is absolutely necessary in that environment as well as future domain sales.

I think it will discourage some entrepreneurs/innovators from seeking online ventures, much like the current net neutrality conflict For the most part this is a hugely unregulated market which is still being capitalized on. How the Internet is changing..

]]> By: Bill Conerly http://www.jdsblog.com/2006/08/28/domain-name-tiered-pricing-2/comment-page-1/#comment-316 Bill Conerly Tue, 29 Aug 2006 19:17:50 +0000 http://jdsblog.com/2006/08/28/domain-name-tiered-pricing-2/#comment-316 A similar problem arises in leases for retail property. You open a store, build up a loyal clientele who are used to visiting you at 1st and Main street, then your landlord raises the rent a ton. You've made your location so valuable that you pay up. The resolution of this problem has been long-term leases with rents partially based on sales. Ten year leases are common, which helps the store. But rental rates include a percentage of sales, so that the landlord profits when sales are strong. The percentage of sales clause makes the store's business less risky--they only pay a high rent if they can afford it. Right now, domain-owners should probably renew for the longest term possible. A similar problem arises in leases for retail property. You open a store, build up a loyal clientele who are used to visiting you at 1st and Main street, then your landlord raises the rent a ton. You’ve made your location so valuable that you pay up.

The resolution of this problem has been long-term leases with rents partially based on sales. Ten year leases are common, which helps the store. But rental rates include a percentage of sales, so that the landlord profits when sales are strong. The percentage of sales clause makes the store’s business less risky–they only pay a high rent if they can afford it.

Right now, domain-owners should probably renew for the longest term possible.

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