Hello Domain,
Friday, January 26, 2001, 2:37:01 AM, Domain Alchemy ISPLists wrote:
> It's Scott, William -
Yeah yeah, mail client template pulls the first word in the "From"
header :)
> Sure, but don't they pay $6/name to the registry still? Then you
> add on the costs of marketing the campaign, support and infrastructure
> all to be financed off .95 / name and the end result is that you have
Most of those costs are existing costs being paid already with their
existing business, though Scott.
> few new customers as most moved back to Tucows afterward? The opt-in mail
> advertisement makes it sound like they own the registration market, but is
> that *really* their market position? P/L position?
As long as they break even on their actual costs for the domains, its
an excellent loss leader. Remember, a lot of these places may not be
trying to make money on domains at all, but use them to drive traffic
in to their site and upsell them, for example with their certs, or
other services. The best loss leader is one that doesn't actually
force you to take a real loss.
The only part of their expenses I'd be concerned about (if I were
them) is the costs of getting to be ICANN Accredited and maintaining
their accreditation.
The best part of a very low price service, is that marketing need not
be quite as expensive as it normally would, since no one can really
compete with you price, word of mouth does the real word. Sites will
post links out of sheer disbelief, people will make posts to lists
like your did here wondering how the hell they can do that, etc.
This is why I discount the whole price argument. If people are trying
to compete on price with companies like Enom, they will never succeed,
obviously. And it is why I say that anyone trying to make a living
off of domain registration who isn't ICANN Accredited is trying very
hard to disappoint themselves. You have to have something else,
something else that makes you attractive to the users, and something
else to have as the primary focus of your revenue model, such as
hosting, dns services, web design, instant tattoo's, magical weight
loss formulas, etc.
> Right. Like I've nothing better to do.
> Like read e-mail lists at 2am?
:)
It's the only time I get enough peace and quiet to get some really
efficient coding done :)
--
Best regards,
William mailto:[EMAIL PROTECTED]
