The PIR sale...Now we are talking about real money!

[Sam Lanfranco]

	Some rough back of the envelope calculations are useful here.. There are
over 10 million .org registrations. One way of measuring the windfall
(economic rent) value of acquiring PIR as a for-profit registry is to look
at the capitalized (present value) of various registration rate increases. 
That involves using a discount rate to discount future revenue flows. Two
rates are typically used. One is the interest rate for borrowed funds, and
the other is the expected normal profit rate on investment.  

	With depressed central bank lending rates, long term US government bonds
are yielding between 2% and 3%. Expectations around normal profits range in
the 10% level, so here are two benchmark discount rates to explore the
present value of .org registration price increases. Note, this is over and
above the current value of PIR as the owner of .org and charging existing
fees. It reasonably assumes no additional costs. The revenue figures are
what comes out of the pockets of .org domain holders, and the present value
is the enhanced asset position accruing to the owners of PIR.

	 As the numbers suggest, we are talking about real money here….! 
	One time Price Increase   

	Additional Annual Revenue: (from .org holders)
	Increased Present Value to owners @ 3% discount rate
	Increased Present Valueto owners @ 10% discount rate
	S1.00   

	S10,000,000   

	S334 Million   

	S100 Million  
	S5.00   

	S50,000,000   

	S1.67 Billion    

	S500 Million  
	S10.00   

	S100,000,000   

	S3.34 Billion    

	S1 Billion  
	 Sam L. 
 
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