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  1. #1

    New Registrar viability...questions

    I have become very disturbed that reseller pricing is so high for domain name services. Even at the $6.95 mark (Enom), with credit card fees, you are competing at a “common” price bracket, limiting profitability for those wanting to be competitive.

    With frustrations running high, I recently reviewed the reseller accreditation requirements and feel that an ICANN authorized registrar that offers competitive services, and a lower price, stands to gain some serious market share. Given the financial commitment involved in accreditation, I am still struggling with an appropriate reseller cost per name and reasonable price points. In addition, how crucial is it for a reseller to be able to sign up resellers? Do resellers prefer a customizable storefront, or an API? I have always coded via an API, but unsure of the common approach.

    I really feel that there is enough room for all to profit (greatly) here but need to weigh the volume I could gain versus the hole I could burn in my pocket . Please provide realistic opinions…

    Many thanks,
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    Last edited by Bashar; 03-24-2004 at 04:13 AM.

  2. #2
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    i think the market is overcrowded and you wont have much success unless you already hold a considerable amount of domains (maybe 25,000 is a good place to start) you wont be getting too many domains. If you really want a registrar maybe you should try buying out an existing one?
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  3. #3

    Re: New Registrar viability...questions

    Originally posted by rollsman
    With frustrations running high, I recently reviewed the reseller accreditation requirements and feel that an ICANN authorized registrar that offers competitive services, and a lower price, stands to gain some serious market share.
    Frankly, I do not see any difference between ICANN registrar and their resellers. No price difference. No service difference. Most of the time, resellers offer better services. The market is overcrowded with resellers: enom resellers, godaddy resellers, tucows resellers, dotregister domains holders. It seems that the number of resellers is actually more than the number of consumers. In addition, small hosting companies prefer to buy domains from ev1 and 1and1.

  4. #4
    ICANN contributions are about 18/name. That plus the annual tld expenses of $6500 for the primaries (com, net, org, etc) leaves a lot of room for a price break. That is why I had a problem, as a reseller, paying such an inflated price.

    A registrar sets the lowest price that a reseller can go.

  5. #5
    Sorry, that's 18 cents a name....

  6. #6
    There are registrars that offer $6.39/domain/year. Where is that big difference in price?
    The only company which collects money is the registry. You needed to apply to be a registry for 45 grand

  7. #7
    Ashley, that is what I am talking about. I am thinking of becoming an ICANN accredited registrar and asking what price points make it attractive for resellers. And its not $45k, its a minimum of $70k. That is why the feedback is important. Becoming a reseller limits the profit potential based on most REGISTRARs pricing models. I need to find out what is attractive.

  8. #8
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    its 6.18 - 6.25/name for combined fee icann+verisign and the difference is the net profit per name.

    imagen other fees the yearly accreditation fee for each TLD ? $4000 for the first one and $500 per other TLD

    i dont think is a nice go if you are selling directly for resellers.
    Bashar Al-Abdulhadi - KuwaitNET Internet Services Serving customers since 1997
    Kuwait's First Webhosting and Domain Registration provider - an ICANN Accredited Registrar

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  9. #9
    How does verisign enter into the picture for fees due. When I spoke to ICANN about fees involved, there was no mention of Verisign. (Humbly asking)

  10. #10
    In order to become ICANN registrar you do not have to pay 70K to ICANN. Please read carefully the ICANN site.
    The point is that there is no need to be ICANN registrar. ICANN registrar is nothing. It does not make money.
    The registry does make money. The only application cost to be a registry was 45K. If ICANN does not approve your TLD then you loose 45K.

  11. #11
    Not only have I read the site, but I have had phone conversations with them. I am aware of the $70k. The $70 is not a fee payable to them, they want to see proof of financial means upon applying. Bank statements will suffice and they do not get the money. Their fees come by means of contributions per domain name as well as a fee to sell certain TLDs. (Bashar pointed this out above). They also get $2500 for the application.

  12. #12
    When you become ICANN registrar how are you going to make money if the number of resellers is higher than the number of consumers? It is a pointless initiative.

  13. #13
    This spells out the fees Ashley: http://www.icann.org/registrars/accr...financials.htm

    I am still unaware of the verisign piece Bashar mentioned and cannot find it on ICANN's site (yet).

  14. #14
    Verisign charges $6 per domain per year.

  15. #15
    If people wish to keep a name, they need to renew it, which prompted my original question and the start of the thread. What reasonible price points would be attractive? Would you rather pay enom $6.95, or me $4? Attractive price points can usually drive volume, but naturally there is a happy medium, that is what I need to find so all vested parties are profitable.

    Furthermore, look at the domain counts on registrarstats.com. There are certainly people out there looking to buy domains. There are also resellers out there open to better deals. I know because I am one of them.

  16. #16
    If you buy from enom for $6.95, enom makes on you about $0.60 that can not make enom even mln's company.

  17. #17
    Again, I am astonished that everyone thinks domain names cost that much. I have personally spoken to ICANN about the schedule. There was no mention of verisign, which is why I do not see where $6 is coming from. If any company had another cut, I would expect it to be network solutions. I would expect those fees to come from annual renewals however.

    So if you are telling me it costs over $6 per name, why is myvaluehost.com, 1and1.com, and others selling them for less? I really was not looking to debate my business plan, but rather find out what is important to resellers and what price would create a demand.

  18. #18
    On ICANN website, the link that you have given us here, it says that you have to pay to ICANN plus you have pay to the registry and there is a link at the bottom of the page.

  19. #19
    Yes it does and it states in all capitals that ICANN does not take the $70k. In addition, the contributions are as I mentioned above...about 18 cents per name. I do not see any contradictions in my posts.

    The link at the bottom of the page returns a list of active registrars.

    This will be my final debating post. I was hoping to get perspective from resellers but thank you all for the input thus far.

  20. #20
    No, the link at the bottom gives you the registries to which IN ADDITION you have to pay $6/domain/year.

  21. #21
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    com/net cost 6$/domain/year to VeriSign.

    Each REGISTRY's price is different (registry manages zone files which contain which domains are registered, nameservers, etc). Each REGISTRAR (an accreditted company given permission to sell domains by ICANN/Registry depending on extension to consumers) sells domains to people. I think there is a huge confusion between the two.

    rollsman, with 140+ registrars you dont think someone would be undrecutting everyone else to gain market share? So many registrars are hitting their lowest possible pricing that other things such as support are being neglected. I think you really need to learn much more about domain registration and the market before you try and become an icann registrar. Try reading about it at the many forums available. I recommend www.domainstate.com as a great resource to compliment WHT. This question has been asked at both numerous times I think if you only used the 'search' feature.
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  22. #22
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    Originally posted by rollsman


    So if you are telling me it costs over $6 per name, why is myvaluehost.com, 1and1.com, and others selling them for less?
    they are making a loss

  23. #23
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    WoW. The statement "loss leader" ended this thread?

  24. #24
    Actually I had to go to sleep. Thank you all for your comments, it is greatly appreciated

  25. #25
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    Originally posted by rollsman
    [B]If people wish to keep a name, they need to renew it, which prompted my original question and the start of the thread. What reasonible price points would be attractive? Would you rather pay enom $6.95, or me $4?
    you're willing to make a *loss* on every single domain regsitered through you of over $2 ? how long do you think that business model will last

    fees :
    appx $0.20 (depends on volume, 18-25c) to ICANN
    *PLUS* appropraite fees to each registry who manage that tld, in the case of NSI for .com/net it's $6, for .biz it depends on volume but *can* be as low as $4 for .uk it's £5.87 at the day you pay the bill usd/gbp ex-rate etc

    .com domains do not cost $0.18, they cost $6.18
    once you add in ICANN membership fees, registry signup fees (yes some do charge a setup) and so on, plus the need to provide whois servers etc, if you get any change from $100k startup and $6.50/domain i'd be *extremely* suprised

    then the harder business part is in convncing people to go with you, not everyone is motivated by the headline price, so you start having to think of staff, services, additional features needed to ease the life of your resellers etc, pretty soon , you'll be providing email/web forwarding, free website tempates, api, online systems, sub-accounts, 24/7 support, charging $8.95 and aclling yourself enom-new

    if you *really* are serious about starting a registrar, try buyiong an existing one
    Last edited by astutiumRob; 03-24-2004 at 09:42 AM.
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  26. #26
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    Originally posted by othellotech
    then the harder business part is in convncing people to go with you, not everyone is motivated by the headline price
    rollsman - you started this thread probing the field. Correct? othello explained my position well. I looked and read for almost a year before I decided who to go with. I have been registering domains since 98 so my decision was based on some experience. Price, for me, wasn't not the driving factor. If you were to enter the market and be the low go on the market I would not switch to you. There are places I can go to that are cheaper than where I am at now but they don't offer what I want.

  27. #27
    the missing link here was the verisign piece. I was aware that a registry was involved but was led to believe that the fees set forth by ICANN were the only ones imposed. Take the $6 out and I think you can all understand the perpective I had. Even in phone dialog with ICANN about the fee schedule and specifically the $10k fee for network solutions they never pointed out that the $10k was broken down to $6/name. The conversation was actually very misleading as I was led to believe it was in the contributions. They actually told me the $10k no longer applies as it is an outdated document online, but failed to tell me about newer ones (hence the huge misunderstanding).

    On the first page I asked (humbly) about the $6 and again am greatful for the feedback.

  28. #28

  29. #29
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    plus ICANN fee which vary between $0.18 - $0.25 per domain
    on the quantity sold average or something.
    Bashar Al-Abdulhadi - KuwaitNET Internet Services Serving customers since 1997
    Kuwait's First Webhosting and Domain Registration provider - an ICANN Accredited Registrar

    Twitter: Bashar Al-Abdulhadi

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