18(c) What operating rules will you adopt to eliminate or minimize social costs?

Prototypical answer:

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.SalonDaySmart SoftwareView

1 DOMAIN REGISTRATION PRACTICES

DaySmart will categorize numerous domains for different release schedules: Sunrise, Landrush, auction, and general availability. Some of these categories will require applications to be submitted and reviewed for approval. Among those applications pending review would be all geographical related domain names.

1.1 Sunrise
Industry specific names, registered brand names and trademarks, and premium domain names will be listed at a premium pricing within the Sunrise and Landrush periods to provide adequate time for the filing of objections. Trademarks and registered brand names are guaranteed their domain at a premium price during the Sunrise and Landrush period. If a conflict over a domain name arises, the conflict will be reviewed, and a strict point based process will be utilized to determine the most qualified applicant. This review process will be developed before the launch of the TLD. DaySmart intends to follow ICANN standards and practices for domain operators. In the outstanding event that both applicants’ reviews do not determine a clear and specified winner, the domain name in question will be sent to private auction. This closed auction will only allow for bidding by the parties disputing the claim.

1.2 Auctioning
Certain industry specific premium domain names will be selected for auctioning. These auctions will be facilitated by international auction houses that are fully sanctioned and licensed, and will be open to the public bidding process. These auction houses have a history of auctioning domain names with a proven customer base to ensure that a wide range of interested parties will partake in the opportunity to obtain the premium domain name listings, and will avoid any fraudulent bidding or bidding by users with malicious or negative intent.

1.3 General Availability
Most domain names will fall in the “general availability” category. These domains will have standard pricing and will not be considered under the premium pricing for domain names. All domains in the general availability category will be offered on a first-come, first-serve basis. In the event that two separate domain registrars each process an order for the same domain name, the conflict would be resolved with the DaySmart approval review process to determine the most qualified candidate. Labor to resolve any domain conflict has been accounted for in the projected financial budget.

1.4 Registrar Considerations
DaySmart will not directly or indirectly show preference to any particular registrar. This will ensure that any registrars of the .SALON domain will have equal operational access to registry systems and registry related services. This assurance will thus ensure that customers of particular registrars are not unfairly penalized or favored, and will thus minimize potential costs imposed to a subset of consumers.

2 BENEFITS TO REGISTRANTS

During the first month of the .SALON domain launch, DaySmart will offer discounts to its current software customers. This action will target over 30,000 users, and provide a quick and immediate interest in the .SALON domain. DaySmart will work with the selected registrars to provide discount codes that can be facilitated to DaySmartʹs existing customers. The codes provided by the selected registrars will include an extra return for the registrars as an incentive for the registrar to promote the new .SALON domain to the current registrar customer base.
Existing DaySmart customers will receive special introductory and initial launch discounts. These same discounts will be made available to the general public through initial marketing efforts. No bulk discounts will be provided to discourage cybersquatting. However, if one of DaySmart’s registrar partners would like to offer a bulk discount, DaySmart is open to discussions.

3 CUSTOMER BILLING

The registration fee represents the funds that DaySmart will receive after the registry and registrar vendor fees have been reconciled. It must be considered that these vendor fees may adjust depending on the volume of .SALON domain names that are registered yearly. The proposed registration fee amount has been established by evaluating historic TLD vendor and registration fee averages (.COM, .NET, .ORG, .XXX, and .PRO) as well as considering economic viability for potential customers on a global scale.
DaySmart’s ‘Worst Case’ fee of 21 USD and ‘Most Likely’ fee of 30 USD are estimated based on other current specialized domain prices. These fees have been chosen in an effort to ensure the cost of this TLD remains affordable to potential customers worldwide. DaySmart’s proposed ‘Worst Case’ fee of 21 USD may be implemented for the following situations:
- The domain market does not support the initial 30 USD offering during the start-up period.
- The registrar partners’ cost drives the price of the .SALON domain to customers above 50 USD.
- The .SALON domain sales are not achieving the business plan objectives.
It is necessary to remain flexible with customer billing cycles. Therefore, we will require our registrars to offer the option to obtain domain name registrations for periods of one to ten years. Registrars that require multiple year purchases will receive negative points during the registrar evaluation process.
Stable pricing is an important factor to upholding a brand image. DaySmart will work with registrars during partnership agreement discussions to establish long term pricing structures that will be acceptable to both parties. To keep startup costs affordable for all users, DaySmart will work with registrars to determine a reasonable final price.
DaySmart will provide to its registrants advanced written notice of price escalations, which will be implemented for individual registrants at the time of domain renewal or initial domain registration, but will not be retroactive for domains registered over an extended period of time under a previous pricing structure. DaySmart does not intend to make contractual commitments to registrants regarding the magnitude of price escalations.

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