100-Year Domain Renewals? 376
Ryosen writes "I received an email this morning from Network Solutions. Seems they are offering their current customers the ability to renew their domain names for 100 years. Is this is a realistic investment considering most companies don't last 100 years? Given that the Internet is a recent phenomenom, is it realistic to expect it to be the same in 100 years? Will Verisign be around that long? Does this make sense?"
One Winner (Score:5, Interesting)
The idea of allowing a user to specify a date for renewals is best, for example April 1st could become the date all the domains for a company are renewed, rather than scattered dates throughout the year.
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useful for 10 years ? (Score:1, Interesting)
well why not? (Score:4, Interesting)
and, as far as Network Solutions is concerned, they get the full money, even if the client does go bust! Its win-win all round.
I remember something similar to it (Score:5, Interesting)
Let's just say that for everybody that paid, it wasn't a very good investment.
(That said, it's not that people had a choice in the matter or anything)
Re:Yeah, it makes sense... (Score:5, Interesting)
Family Names (Score:5, Interesting)
100 years of interest loss (Score:2, Interesting)
This does not even come near the truth. If one dollar that you're paying now is used in a hundred years, you would actually have $131 when taking interest into account (assuming 5% each year).
What a loss!
Well you could make a great deal, look at Guinness (Score:5, Interesting)
Source: [viewlondon.co.uk]
I guess he made a great deal don't you?
Re:Why pay $9.99/yr when you can pay less... (Score:1, Interesting)
Re:Um...no (Score:3, Interesting)
Re:Where does the ownership go? (Score:3, Interesting)
I asked the rep then what is to stop me from registering my domain at the cheapest place possible for an extended time, (10 yrs etc) and then transferring it to register.com to take advantage of their free 800# support etc. She said that although that's abusive to them, it's allowed, and that some people do indeed do that to get their higher quality services without paying the higher registration fees.
This being the case, if NS goes under, you can just transfer administration of your domain name to another registrar. I suppose you can think of it like stock... you pay a broker to buy and manage stock for you. If the broker or his company goes away, it doesn't mean you've lost your stock - you just have to find another broker to continue providing you services for the stock you own. That, and you have the right to change who manages your stock at any time.
Why not? (Score:4, Interesting)
So why not offer 20, 50, or 100 years at $12/year? I'm sure MANY businesses will leap at this, since it's the equivalent of guaranteed online trademark protection for your single most valuable asset, your domain name and online identity.
Re:companies dont last a century.. (Score:2, Interesting)
Re:Family Names (Score:2, Interesting)
IANAL
NPV sorry for all the techies but an MBA had to.. (Score:3, Interesting)
I've seen a few comments targeted against MBA's in a few weeks and the one I saw today just was too much BS.
The argument that this is a stupid "gain money quickly move" doens't stand.
Well some people obviously have neve heard of NPV, or Net present Value of money.
Net present value gives you the value today of a series of cash flows to happen in the future.
The formula is as follows:
NPV = SUM(Cash Flow *(1+i)^-n) | Where n ranges from 1 to 99 in our case.
i is the opportunity rate. In a company money typically has a greater return value than the money market. IE you would expect money invested in a company to be more profitable than on the money market.
This means that if the money market rate is 5% than you would expect a higher internal return to compensate your risk (risk premium principle). Thus the internal rate of return of a company would be market rate+risk premium.
So the IRR could be 10% in a company.
Let's just imagine these guys at NetSol are a bunch of losers and will only offer the market return rate, or will simply put the money in government bonds at 4% (constant over 100 years for simplicity skaes).
Let's say also that the cost of a web name renewal will be $10 per year for the next 100 years (it's more likely to be more as the inflation cathces in, but heck let's keep it simple).
Even with these very pessimistic variables, the NPV of these cash flows is $306!!! Tha's a $700 profit for the Netsol guys.
So please, don't say they are making a stupid move doing this as you have no idea what you are talking about. This is a very profitable operation.
It is very likely to be a success as people will think " hey 100 years * 10 dollars = $1000. So I am not getting ditched and it is peace of mind. Let's take it"
BTW, if the NPV is $1000, than the discount rate is only 0.12%. Impossible.
Re:Yeah, it makes sense... (Score:3, Interesting)
long term -- well, at some point, the last IBM leaser bought his machine, and suddenly (and the accountants simply did not predict this would ever happen) the sales bottomed out and flatlined. pretty dramatically too, as the machines were often plenty fast enough for what they were doing (much as PC hardware is today). IBMs recovery effort on that one cost them several thousand jobs, if I recall correctly.
So Versign is doing the same thing (heck, I think I said that here on
One can predict that either Verisign expects to be in another line of business by the time that happens, or they're going to suffer greatly for it.
Time = Money (Score:3, Interesting)
Re:Um...no (Score:5, Interesting)
Heck, what if there was enough IP space such that the ASCII codes for the letters in your site name somehow made up the actual IP. That would eliminate the need for a DNS system altogether, but would waste a lot of IP space as we think about it in our current paradigm of fixed ip lengths with groupings etc etc. Perhaps future systems will not need fixed length, perhaps not. Who knows.
domain name hijackers (Score:3, Interesting)