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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?"
100 year registration is plain silly. Ten year ones currently are popular but really only to those who have very valuable names or dont want the hassle of re-registering names every year.
The idea of allowing a user to specify a date for renewals is best, for example April 1st could become the date all the domains for a company are renewed, rather than scattered dates throughout the year.
My Auction: Pan Tilt Moveable Ethernet Webcam, UK!
the thing is, if you're a company like MS or IBM, spending $1000 on a domain is worth the tme it would otherwise take to get it renewed every 10 years. You don't know the paperwork, the invoicing, the bills, the accounts, the 'why do we need this domain' questions... buy it once for $1k, forget about it.
and, as far as Network Solutions is concerned, they get the full money, even if the client does go bust! Its win-win all round.
Just before the Nationalists fled mainland china to Taiwan, they pre-charged everyone something like 50-years worth of taxes.
Let's just say that for everybody that paid, it wasn't a very good investment.
(That said, it's not that people had a choice in the matter or anything)
My life in the land of the rising sun.
I would be very surprised if Network Solutions can report this as lump-sum revenue in the quarter received. Like any subscription, I would assume that it has to be spread out over the length of the registration. If so, they're actually potentially giving up some nearer-term revenue for this (because there's a discount involved)--even though they're getting cash in hand.
For those of us with Family names as domain names, holding that domain name for 100 years.. while debatably evil.. does become a viable use. It can be passed on from generation to generation. A legacy kinda thing.
"If you are falling off of a mountain, You may as well try to fly." -- Sheridans Father
In 1759 Arthur Guinness, rather speculatively, took over a deserted brewery at Dublin's St James's Gate, moreover he leased it for 9,000 years at a rent of 45 per annum - obviously intending on staying awhile.
Source:
I guess he made a great deal don't you?
I only read slash. for the articles...
So why not offer 20, 50, or 100 years at $12/year? I'm sure MANY businesses will leap at this, since it's the equivalent of guaranteed online trademark protection for your single most valuable asset, your domain name and online identity.
Dude, where's my packet?
.. answer this
I've seen a few comments targeted against MBA's in a few weeks and the one I saw today just was too much BS.
The argument that this is a stupid "gain money quickly move" doens't stand.
Well some people obviously have neve heard of NPV, or Net present Value of money.
Net present value gives you the value today of a series of cash flows to happen in the future.
The formula is as follows:
NPV = SUM(Cash Flow *(1+i)^-n) | Where n ranges from 1 to 99 in our case.
i is the opportunity rate. In a company money typically has a greater return value than the money market. IE you would expect money invested in a company to be more profitable than on the money market.
This means that if the money market rate is 5% than you would expect a higher internal return to compensate your risk (risk premium principle). Thus the internal rate of return of a company would be market rate+risk premium.
So the IRR could be 10% in a company.
Let's just imagine these guys at NetSol are a bunch of losers and will only offer the market return rate, or will simply put the money in government bonds at 4% (constant over 100 years for simplicity skaes).
Let's say also that the cost of a web name renewal will be $10 per year for the next 100 years (it's more likely to be more as the inflation cathces in, but heck let's keep it simple).
Even with these very pessimistic variables, the NPV of these cash flows is $306!!! Tha's a $700 profit for the Netsol guys.
So please, don't say they are making a stupid move doing this as you have no idea what you are talking about. This is a very profitable operation.
It is very likely to be a success as people will think " hey 100 years * 10 dollars = $1000. So I am not getting ditched and it is peace of mind. Let's take it"
BTW, if the NPV is $1000, than the discount rate is only 0.12%. Impossible.
Artificial intelligence is no match for natural stupidity
For some companies it's worth the $1000 to register their domain for 100 years so they don't need to have someone worry about it. Granted, it takes 5 minutes to renew your domain, but if they save some money on top of that, it's totally worth it. (Not to mention $1000 is nothing to most companies)
This is something I've pondered often. I think the DNS model will only persist as long as the impression that a website must be a .com does. This is fading, but I remember a long time ago when people thought there was a mistake if there was no www. on the front or it wasn't a .com.. Granted, the tech public knew better, but the average joe had no idea. (im talking back when = 6), eventually it will just make more sense to have sort of a distant cousin to a search engine type DNS system. Or maybe websites will be more or less a sentence (company slogan) or word pair (company name)? Who knows, but I agree, machine naming is going to change drasticly someday.
Heck, what if there was enough IP space such that the ASCII codes for the letters in your site name somehow made up the actual IP. That would eliminate the need for a DNS system altogether, but would waste a lot of IP space as we think about it in our current paradigm of fixed ip lengths with groupings etc etc. Perhaps future systems will not need fixed length, perhaps not. Who knows.