Hello,
Since the price increase doesn't take effect for a few days, and we're
allowed to renew domains early, we should see a mini-rush of renewals
on the day before the price increases by smart investors. It's kind of
like when the TTC (Toronto public transit system) announces a price
increase for tokens -- it makes sense to invest in them before the
price increase.
The size of the increase is 1%. If your opportunity costs (alternative
similiar risk-free investments) are 2% per year (realistic under
current interest rates in Canada/US), for example, then it takes 6
months to earn 1% of your original investments. Thus, you should renew
6 months' worth of domains early (assuming simple linear interest, no
compounding).
Roughly speaking, mathematically, if your opportunity cost of funds is
C (e.g. C = 0.02 for 2%, 0.05 for 5%, etc.), then you should renew:
0.01/C * years in advance.
C = 1% ---> a full year of renewals in advance
C = 2% ---> 1/2 years worth of renewals in advance
C = 4% ---> 3 months worth of renewals in advance
Since it's only a 1% price increase, TTC tokens might be the better
investment (those often go up 4 or 5%!). ;)
Sincerely,
George Kirikos
http://www.kirikos.com/
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