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Username: griffiths
Date/Time: Sun, November 5, 2000 at 9:56 PM GMT
Browser: Microsoft Internet Explorer V5.0 using Windows 98
Score: 5
Subject: Unclear financial costs and structure


        I believe that the time is right for a personal name registry, however this proposal appears to have limited financial capabilities. 

Although there is a price point of $3.50 and conservative demand forecasts, there seem to be very little in the way of details with regard as to what the operational costs of the proposed registry will be.  Various references are made that the technical provision will be outsourced to the dotTV registry, which on the basis of the information provided seems to be delivered at nil cost to the .nom registry.  All other costs are provided as a percentage of turnover, although this fails to recognise that costs in the intial years are likely to be significantly higher than later years (other than salary dropping from 15% to 10% and recruitment costs from 4% to 2% in the second year).  Office costs are unlikely to be a fixed percentage of turnover, neither are travel nor insurance nor professional fees - which incidentially at 12% do seem very high.

A funding requirement for $10,000,000 is identified, although dotTV will be providing $2,000,000 of this from their current reserves although there doesn't appear to be any indication that dotTV shareholders have agreed to this, nor what share of DotNom they would own as a result of this investments.

Finally, a TLD tax of $1 per domain to ICANN has already been established as unacceptable when ICANN is operating on a cost-recovery model.


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