Two things here. The blogware point you make is well understood here. Some of the scalability and usability issues are in front of what you are talking about. Also, some of the bits are easier to fix than others. As you can appreciate it is never as simple as "add more developers". That can introduce many other problems. Sometimes these things need be serial.

There is no question in our minds as to whose customer the end user is. It is yours. In blogware, especially compared with ANY other alternative, there is a ton of branding and customization inside the service for the reseller to do. It is beyond that where I think the efforts should be made in any event. It is tools and a level of service that greatly assists users in using blogware that is where the branding opportunities lie.

When talking about expired names I did very purposefully use the term "end user" not "customer" so there would be no confusion. The point I was making relates to the end user. The service provider is our customer and the end user is their customer. AND the end user is part of the market and the transaction and Tucows cannot be blind to them.

The substance of the issue is the role of the service provider. We believe, and the vast majority of our customers believe (and I know from our interactions that you believe), that the role of the service provider is to help end users, both businesses and individuals, use the Internet. They provide them with important services and they assist them in using those services.

With respect to an expiring domain name there are a few truths that have clearly emerged. Two are important here. First, expiring names have value. It is only a small percentage of the total names that expire, but there is material value involved. Second, for a service provider who supplies domain names to their customers there are three ways they could deal with this truth as follows:

i) they could ignore it and take the position that they have sent out numerous renewal notices that have been ignored thus they have fulfilled their obligation;

ii) they could profit from it by taking the position that they have sent out numerous renewal notices that have been ignored thus they are entitled to any benefits that flow from the name;

iii) even though they have sent out numerous renewal notices that have been ignored, they could take steps to realize the latent value on behalf of their customer and charge a reasonable fee for that service.

Let's look at each of the three. Let me be clear, my comments are not in any way legal in nature. They are my opinion as to what is right to do to best serve your customer. Again, your customer.

The first, which is where most of the market is right now, is understandable. It would be difficult today to capture value efficiently for your customer. If it were easy to do then the analysis may be different.

The second is, in my opinion, just not right. Registrars and resellers who convert their whole expiring base to their own benefit are not serving their customers' best interests and will not do as well in the long term as those that look after their customers interests. In fact, they have positioned their interests at odds with those of their customers ("oops. sorry you didn't get that renewal notice. so what if we use the term "viagra" in it!").

When you read the options in order it is plain to see that the third will be the de facto standard for customer-focused service providers.

The Internet is brutal in its speed and efficiency in disciplining markets. Tucows needs to create a marketplace (and I use that term only in connection with expired names) that makes it easy for its customers, service providers, to best serve their customers. We are aware of the fact that effecting this service in this way has a value judgement implicit in it.

We are valuing service providers interested in providing the best service to their customers. This really pushes us to provide this service in this way. We have always built services with this in mind.

We can have a lively discussion about what transaction size is efficient to convert on behalf of the end user. I know a name "worth" $12 is probably not worth the transaction cost of running an auction. I also know a name "worth" $100 clearly is. None of that changes the underlying premises.

There are thousands of things that suppliers do every day for customers without the customers explicit consent. The nature of the customer/supplier relationship regularly contains implied consent to any number of steps taken on the customer's behalf. In my view, end users rely on service providers to "look after them" or to "take care of them" with domain names and with many other Internet services. Again, I do not have any doubt as to the way this will be viewed in the market twelve months from now.

Quick note on gdnx. We will be looking to provide our customers with any opportunities that make sense in terms of what they offer to their customers. We will be looking to expose our customers inventory to anyplace that would treat it appropriately. That is all about efficiency and liquidity. If gdnx can do that then we will be happy to work with them.

The easiest thing to do, especially as a public company, would be to put the money in our pockets or to do that with the resellers. In my view I would be setting you guys up. Someone will deal with the market in a customer-centric way. This is the Internet. There are no secrets. Someone will. When they do they will make you look like an ass. What you would be doing is benefiting yourself to the detriment of your customers. Ignorance is not a business model in anything but the very short term.

Coming to Toronto soon? I can buy you a beer and you can tell me how wrong I am :-).

Regards

Austin wrote:
Elliott,
In your statement you use the word 'customer' instead of 'end user'. I must assume that this was just a slip. Who is your customer? The end user is my customer, not yours.That would make me, the Reseller, your customer. The biggest issue we are having with BW (other than stability - which Tucows is working on), is that the system is setup so that Tucows keeps getting in between me and my customer, the end user. This happens with signups, login, logout, subscribers, usernames, reader accounts, etc. Please get this fixed so that your customers can make money for themselves and Tucows. With regard to expiring domains, I would just say again that you need ask who your customer is. It appears that you are trying to police the market instead of creating a product that your customers can use to make more money for Tucows and themselves. Not to go off topic, but in my opinion, you should consider working with GDNX.org so that you can give your customers an avenue to make money for themselves and Tucows in the domain resale market. My theme should be apparent, but please concentrate on doing things that give your customers more opportunities to make more money for themselves and Tucows.

Austin

"elliot noss" <[EMAIL PROTECTED]> wrote in message news:[EMAIL PROTECTED]

Robert, I need to dig a bit deeper on something you said:

"This is a choice between acting ethically or taking money I
wouldn't touch with a ten-foot pole"?

I would like to understand this a bit better, and let me be clear up front. I do not agree.

First, I would like to park the email marketing service discussion here. It will be responded to separately, which is more appropriate.

When I read the above statement there are two possible threads that come to mind for me, the "opt-in vs. opt-out" discussion related to expiring names and our offering of blogware and website building tools (the "tucows is getting into hosting" discussion). Are their others? If so, please identify. If it is those two then I would like to further examine both.

I will start the ball rolling with a statement. To me, in twelve months there will be no question that registrars who are "opt-out" with respect to expiring names will be clearly seen as making the ethical decision, the one that takes the customers best interests into account and that "opt-in" will be seen for what it is. Acting in the interests of the registrar or reseller NOT the customer.

Regards
Elliot Noss

Abel Wisman wrote:

----- Original Message -----
From: "Robert L Mathews" <[EMAIL PROTECTED]>
To: <[email protected]>
Sent: Thursday, June 30, 2005 5:48 PM
Subject: Re: [domains-gen] Tucows Email Marketing Service



(Why is it that many of my postings to this list in the last year boil
down to "This is a choice between acting ethically or taking money I
wouldn't touch with a ten-foot pole"? That can't be a good sign.)


Make that the last 2+ years and we're getting closer.

You were here at the start, like some of us, with totally different ideas as to what it now has turned into, I guess this is another cleansing of those
that think that way.

abel

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--
Elliot Noss
Tucows Inc.
416-538-5494

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