Well, now we know what's a profitable business model and what's not.
And, looking ahead, we can also predict CR's income in exactly 2 years'
time - but this time, without the costs.

Fortunately being .au domains the registrant has a reasonable chance of
transferring out - not like CR's .com names!

To me, however, there's a different question.  If consumers are willing
to pay $237 for a domain name, why are registrars cutting each others'
throats to get the price down to the levels they are?  Is price REALLY
the impediment that most of the industry seems to think it is? (Note -
I'm not advocating a price increase!)

Asked another way - would CR's uptake have been higher or lower if he'd
pitched the price at $347?  $147?  $97?

Ron Stark

> -----Original Message-----
> From: Josh Rowe [mailto:josh§email.nu] 
> Sent: Wednesday, 31 December 2003 12:36 AM
> To: dns§lists.auda.org.au
> Subject: RE: [DNS] Ball gazing
> 
> 
> I thought this was an interesting part of the ZDNet news article:
> 
> " ... The mail-out yielded 9,000 registrations at AU$237, a 
> figure significantly higher than the average domain name 
> registration fee of AU$85. In total the mail-out resulted in 
> AU$2.3 million in registrations with DNA. ... "
> 
> I'm not an accountant, however here's my best guess on 
> Chesley Rafferty's (Domain Names Australia) books:
> 
>  $2,133,000  : 9,000 net.au domains sold by DNA § $237 each
> ($  540,000) : 9,000 net.au domains cost § $60 each from 
> Explorer* ($  300,000) : estimated legal fees for auDA + ACCC 
> vs DNA court case ($  400,000) : estimated cost of 500,000 
> allegedly misleading advertisements ============  $  893,000  
> : Chesley Rafferty's (Domain Names Australia) estimated profit
> 
> * Based on Explorer's reseller price (http://whatsinaname.com.au/).
> 
> 
> Also of interest are the types of e-commerce complaints 
> received by the ACCC.  They are listed in the review 
> discussion paper of the Australian E-commerce Best Practice 
> Model 
> (http://ecommerce.treasury.gov.au/bpmreview/content/_download/
> BPM_Review.pdf
> ).
> 
> "Table 1: Types of e-commerce complaints received by the ACCC 
> (30 June 02 - 30 June 03))
> 
> ============================================================
> Issues or conduct				Percentage of complaints
> ============================================================
> Misleading advertising or prices	23
> Domain name renewals			20 <-------------------|
> Pyramid selling and other scams	7
> Unsolicited goods or services		4
> Warranty matters				4
> Anti-competitive arrangements		2
> Unconscionable conduct			1
> ------------------------------------------------------------
> Source: Based on data supplied by the ACCC."
> 
> " ... Data from the ACCC also show that sixteen online 
> traders accounted for nearly half of all online-related 
> complaints received by the Commission during this period. 
> These traders generated consumer complaints concerning: 
> domain name renewal; dissatisfaction with Internet 
> broadband/ADSL services; [etc] ... "
> 
> 
> Chesley Rafferty, Brad Norrish, etc 
> http://whatsinaname.com.au/slammers/
> 
> 
> Have a safe and Happy 
> New Year all!
> 
> 
> Josh
> --
> http://josh.id.au/
> 
> -----Original Message-----
> From: Kim Davies
> Sent: Tuesday, 30 December 2003 9:20 PM
> To: dns&#167;lists.auda.org.au
> Subject: [DNS] Ball gazing
> 
> Kind of an auDA annual recap here in this article, "Domain regulator 
> labels DNA brawl as biggest consumer issue", from ZDNet: 
> 
> [snip-snip]
> 
> Source: 
> <http://zdnet.com.au/newstech/ebusiness/story/0,2000048590,202
82256,00.htm>

kim


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