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Comments on "market pricing" recommendations

  • To: <biz-tld-agreement@xxxxxxxxx>, <info-tld-agreement@xxxxxxxxx>, <org-tld-agreement@xxxxxxxxx>
  • Subject: Comments on "market pricing" recommendations
  • From: "Peter Hutto" <phutto@xxxxxxxxxxxxxxxxxx>
  • Date: Mon, 28 Aug 2006 12:09:15 -0700

I cannot voice my concerns and opposition to the proposed market pricing
changes strongly enough. I am a small domain property holder (about 1000
properties). I buy domains with the intent of developing them, not
parking them. The world of virtual real estate is just starting to
emerge and I believe that if this change happens then it will in effect
give the few large players enormous sway over the market and lock out
all innovation and stifle growth potential. The big players/registries
who would clearly benefit from this recommendation, do not actually know
how to appropriately set the market value for domains. 


Today, there is no clear valuation method nor are there standards. Cash
flow based valuation (from parked traffic or existing developed sites)
seems to be the prevalent valuation method 


I believe that ICANN already has an example of how people behave when
suspect policies like this one are approved- and it is re. how a select
few registrars/credential holders buy the dropped names and use the 3
day holding period to game the system (catch and release or "domain
tasting".  I believe the registries who would benefit from the proposed
market pricing valuation proposal would quickly exploit the system for
their own gain and the few well capitalized players in the space AT THE
DETRIMENT of the small, entrepreneurial players like myself. If this
happens I view that I will be further disadvantaged and removed from the
potential of building a great portfolio of great properties. 


Thanks for listening to my rant. Please do not approve this policy.



Peter Hutto


Internet Property Development Group





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