Badger said:
thats an interesting point:
Do premium purchases from the registry constitute "sales"....?
i'll ask Duke me thinks...
Of course they are. They are sales on an installment plan.
A sale is an exchange of cash for the right to use the name in perpetuity.
(in most major extensions the annual renewal fee is so low that it is effectively zero).
In the case of a premium .tv domain registered from Verisign the amount of cash needed to secure the perpetual use of a domain is the annual registration fees multipled by many years. (Taking into account the fact that a dollar spent in the future is worth less than a dollar spent today. See below for the precise finance answer)
In non-finance terms, just ask yourself the following common sense question.
Which domain will cost you more?
a) a domain that you have to purchase from someone for $5,000 and then can keep using forever for $7 / year
or
b) a domain that has an annual registration fee of $5,000
per year but that you do not have to "purchase"
We should not be misled by the fact that Verisign calls its sales price "registration fees". It just means that it is selling you the domain with an installment plan.
Cheers,
Antonis
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* Technical financial explanation. The true cost of a premium .tv registration is the cost of an annuity (annual payment) in the amount of the registration fee, discounted back to the present day. Depending on your assumptions about interest rates, the cost in today's dollars of registering a .tv domain name forever is something like 5x to 9x the registration fee
For the finance geeks out there, you should probably reduce this amount to account for the fact that you can choose to renew without penalty and to take into account Verisign multiyear discounts, but that is a technical twist that does not change the overall point