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100-Year Domain Renewals?
Ryosen writes "I received an email this morning from Network Solutions. Seems they are offering their current customers the ability to renew their domain names for 100 years. Is this is a realistic investment considering most companies don't last 100 years? Given that the Internet is a recent phenomenom, is it realistic to expect it to be the same in 100 years? Will Verisign be around that long? Does this make sense?"
In the United States, long-term structural businesses leases -- typically for an office or shop in any structure from a one-story to a skyscraper -- top out at 99 years, oftentimes because of state law. For instance, Alabama limits leases to a maximum of 99 years. So the 100 year domain name extension is in line with that rule-of-thumb.
You're assuming that registration stays at a flat rate. What do you know you can buy today for the same price 100 years ago? Or even 10? You're also talking about $131 in one hundred years from now. That $131 will most likely carry close to the same weight as $1 does today. Compare what $100 buys you today and what it bought you in 1904.
"Sexy Man" is not a moderation option. -- arose
No, you're missing the point. High inflation *strengthens* the argument, as it is better to get $10 now than *after* double digit inflation. After a period with 100% inflation, the same nominal $10 would be the equivalent of $5 real (using now as the baseline). It would have to inflate to $20 nominal to match the current $10 real.
What NetSol is saying is that they think that inflation in domain name prices will be lower than inflation in general (note that domain name prices have been *falling* rather than rising; remember when the same $1000 would have gotten a domain for *1* year, not 100?). As a result, they are better off getting paid now, even at a discount from their typical rates.
Note: remember that we are talking about the advantages to the *seller* here. Buyers would probably be better off with short term renewals, as they can expect domain name prices to fall relative to other products as name serving, etc. becomes more efficient. All they gain are the transactional savings of not renewing as often.
Not to mention the problem of NetSol going out of business in the meantime and leaving these 100 year domain owners stranded.