[registrars] Regarding taxes

[Mike Lampson]

I can say for us, that we expect some amount of "reasonable" growth in
ICANN.  But increasing the per-domain cost by USD$0.10 *and* tacking on a
USD$19,000 fixed fee (which for us equates to another USD$0.13 per domain)
means that our per domain costs are going up from around USD$0.19 per year
to USD$0.42.

Yes, the size of the fixed fee is an issue.  The smaller the Registrar, the
bigger the issue.  But the overall issue to us is that our ICANN "taxes" are
doubling.  As a larger registar, the percentage increase you see may be
smaller, but I bet the total increase in your out-of-pocket fees to ICANN
are *LARGER*.  With millions of domains, an extra 10 cents each is no "chump
change".

In my personal opinion, any growth in ICANN's budget that increases the
amount collectively paid by Registrars more than 25% per year is
unacceptable - and I think I'm being generous at 25%.  If there are truly
fixed costs to ICANN for maintaining each accreditation, I can accept some
amount of increase in the fixed fee component of the "tax".  I would apply
the same growth cap to the fixed fee component as I would to the entire fee
structure however.

In closing, I think we as a Constituency should not tell ICANN that its
growth must be constrained by the growth in taxes paid by us.  We need to
stress that we are fighting having ourselves be the pocket that is picked.
Our pockets are nowhere near as deep as ICANN seems to believe they are.

Regards,

Mike Lampson
The Registry at Info Avenue, LLC


-----Original Message-----
From: owner-registrars at gnso.icann.org
[mailto:owner-registrars at gnso.icann.org]On Behalf Of Tim Ruiz
Sent: Thursday, May 27, 2004 3:39 PM
To: 'JP'; 'Larry Erlich'; 'Bruce Tonkin'
Cc: 'Registrars Constituency'
Subject: RE: [registrars] Regarding taxes


JP,

The increase in your cost of registration is not the full transaction fee
plus per-registrar fee in this budget. You are currently paying something to
ICANN so the *difference* is the real increase in your costs. And, based on
history, surely you worked increases in ICANN fees somewhere into your
business plan and budget when figuring your true costs and setting your
prices.

It still seems to me that the per-registrar fee is the issue we need to
discuss and find a reasonable resolution to that the majority of us can
agree on and present to ICANN.

Tim


-----Original Message-----
From: owner-registrars at gnso.icann.org
[mailto:owner-registrars at gnso.icann.org] On Behalf Of JP
Sent: Wednesday, May 26, 2004 11:49 AM
To: Larry Erlich; Bruce Tonkin
Cc: Registrars Constituency
Subject: Re: [registrars] Regarding taxes

Larry:


> That is a business choice that they have made. If their costs
> go up they need to reevaluate that choice. That is not the same as
> a small registrar having to pay quad the fees.

€€€ Can you explain this to Me, because I see it exactly the other way
arround.

> The only way that the increase in transaction fees will kill
> a large registrar is if they have contracts with customers that
> specify their cost will always be, say $6.50 (or whatever).

€€€ I can not speak for other registrars, but it will badly hurt us.
>
> Another example of a registrar that might need to eat
> the fee might be Godaddy. The site advertises $7.95 and $8.95
> for transfers/new registrations. If a per domain fee of .25 is
> added, they can't maintain those prices and those magic numbers.

€€€ Please, visit our website and check our prices.
>
> I think that if a registrar makes a choice to sell domains so close
> to the cost, then take a risk if fees are increased. That is a risk
> of the business model they have chosen. It is not the same
> as, once again, a small registrar being hit with an extra $19,000.
>
€€€ Again how come it is unfair only one way. There is an increase on the
variable fee, and it is substantial, as Kurt said yesterday, MOST of the
funds come from the increase in the PER TRANSACTION fee.

What you are advocating for is that ALL the funding should come from a per
transaction.
I not only think it is unfair, I can tell you it will completely cripple our
business, and our ability to provide a large number of customers with
registrations at an affordable price, customers, that because of the
increase might not be able to pay for those registrations...

Our "choice" of model has always been to provide more for less, and it
proved successful. I do not think your idea of killing our model in favor of
smaller, "boutique" , "specialty" or even non registering registrars is
fair; As for the registrars that have a VIABLE, REAL, registration business
going on, there is relief from the fee.


Regards,

JP




>> The bottom line is that there is an large overall increase in fees for
>> registrars as a whole, and nobody  (big or small) is happy with the
>> increase they have to pay individually.
>
>
>>
>> Regards,
>> Bruce
>
> --
> -----------------------------------------------------------------
> Larry Erlich - DomainRegistry.com, Inc.
> 215-244-6700 - FAX:215-244-6605 - Reply: erlich at DomainRegistry.com
> -----------------------------------------------------------------