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

Prototypical answer:

18c) Eliminate Social Costs
(i) DotPlace’s plan for launching the TLD is to offer a robust, cost-effective means for registrants to assert their identities online under a generic domain targeted for a broad registrant base. DotPlace is committed to launching and managing the TLD in a responsible manner to serve registrants with optimal efficiency, which will also be in the best interest of the global Internet community. Furthermore, the incorporation of enhanced safeguards will not only serve registrants and Internet users, they will help protect intellectual property and prevent malicious activity.
The DotPlace core mission is serving its registrants and the public interest. This includes minimizing and eliminating social costs; establishing a better financial income stream and fostering innovative business models; promoting competition to reduce prices and creating differentiated value; establishing improved innovative services; sharing related information and resources; cater to the unmet needs of its registrants; adapt to any technological advances and changes in the environment relating to the Internet; to provide exceptional service and enhanced safeguards and security.
REGISTRATION PRICING
DotPlace will adopt a moderate, competitive pricing point taking into consideration:
1. As indicated by the McAfee’s 2011 security report (http:⁄⁄us.mcafee.com⁄en-us⁄local⁄docs⁄MTMW_Report.pdf), pricing is one of the most influential factors taken into consideration by registrants aiming to conduct malicious activity and abuse. Domains with low registration prices have a higher likelihood for abuse. Prices in the middle and higher end ensure there is a slight barrier to entry to reduce the number of registrants offering low quality content.
2. A benchmark analysis of comparable gTLDs and ccTLDs existing today.
3. Assuring pricing is optimally set taking into consideration registrant price sensitivity and price elasticity of the domain’s demand.
4. Acknowledging that optimal pricing is directly related to how registrants perceive the domain’s value. DotPlace will continuously innovate its business model and offerings to not only be competitive in the TLD space but also to drive user adoption of the TLD as an industry standard for its niche audience by offering a unique value proposition.
In the two initial launch phases multiple applications will be resolved via auction. During the general availability stage, domains will be allocated in a first come-first serve basis.
DotPlace will implement a competitive pricing structure based on criteria mentioned earlier to avoid abusive behavior and through benchmark analysis of comparable gTLDs and ccTLDs existing today, including addressing price sensitivity concerns by offering a unique value proposition to registrants. Registration prices ultimately are at the discretion of ICANN-accredited registrars, but it is in their financial interest to price competitively to attract higher registration volumes that can complement other domain-related services such as hosting.
DotPlace will offer an affordable domain that can help an entity build a uniquely branded and exclusive presence online, while ensuring the cost of the domain is optimally priced to prevent malicious behavior and abuse traditionally experienced in low-priced domains. Depending on the cost of doing business, market conditions, external environmental forces and other economic factors, DotPlace may from time to time increase or lower the wholesale price in accordance with the provisions of Section 2.10 of the New gTLD Registry Agreement.
ii)
DotPlace might choose to offer cost benefits in relation to advantageous pricing, introductory discounts, or bulk discounts if there is a need to substantially increase domain sales to meet financial and operational registry needs, especially in the situation where the most likely projected registration volume is not met. In that situation, DotPlace will consider implementing targeted marketing campaigns with registrar channels that would include discounted prices.
Otherwise, DotPlace does not have specific plans for advantageous pricing, introductory pricing, nor plans for any bulk registration discounts.
iii)
DotPlace will not offer long term or permanent contracts (beyond that of the maximum term of 10 years) for domains. DotPlace has carefully considered the needs of the market in setting its prices on its services. Any price escalations or reductions will be reasonably justified and managed in accordance with the provisions of Section 2.10 of the New gTLD Registry Agreement.
DotPlace will allow the use of parked pages but domains will be subject to the anti-abuse restrictions described in response to question 18b.

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