Re: Why not domains for $2 or maybe FREE

From: Anthony DiPierro (opensrs@inbox.org)
Date: Mon Jun 05 2000 - 17:27:45 EDT


Economics 101: OpenSRS pays $6 and charges $10. There are very few
possibilities.

1) This $4 markup covers their expenses. If they lowered their markup,
they would lose money.
2) OpenSRS has a monopoly on selling this product. (this is untrue)
3) OpenSRS is smarter than you at implementing their service. Their
profit represents their unique features and unique efficiency at
implementing the service (which is in essence their monopoly).
4) YOU could sign up for ICANN yourself and offer the product for less,
and still make money.

My bet is that about $3 of 1 is true (maybe $.50 of 3 and $.50 of
4). So I could sign up for ICANN, charge $9.50, and make $.50 a domain
(until OpenSRS undercuts me). Maybe I'll make $100,000, by then. It's
not worth the headache. If you are claiming that 4) is true, go ahead and
try, otherwise, stop complaining.



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