How to become an ICANN accredited Registrar

[glaxxon]

Hi Everyone,

I am doing some market research for a possible business venture which might involve becoming an ICANN accredited registrar. I definitely don't want to become a reseller as it doesn't suit my needs. I know it is not cheap and the investments will go into $xxx,xxx.

But i need a proper breakdown of the costs involved and if it be a good idea to go through sites mentioned webhostingtalk.com/wiki/Registry_Registrar_Solutions. These provide some sort of technical services basically providing the infrastructure for this business, thereby reducing the initial capital required.
What are the pros and cons about going through these 3rd party sites like Logicboxes, etc?


Now if i go directly via ICANN, then what are the basic steps?
Do i need to get the website and the whole system for the registrar set-up before applying for accredition or first apply and then proceed?


Also i wanted to know what kind of development costs are associated with making a full-fledged site like godaddy?


Also will appreciate any thing else i need to know before going ahead with such a project.

Thanks for helping in advance...
:wave:

 

[Kate]

There's a lot of info on Icann's website.
You can be your own registrar, to manage your own portfolio.
You don't have to sell to retail customers. So you don't have to maintain a website, customer service etc unless it's in your business plans.

If you find the process too daunting there are a few consulting firms like Logicboxes, Wixi, Yon etc that will walk you through the process.
Either way, it will take time and money.

What you can also do is lease a registrar:
http://www.myrebel.com/

Perhaps it's a better option to get started, or use a white label registrar. When you are established you can always seek accreditation at a later time.

 

[glaxxon]

Not looking to manage only personal portfolio, but for retail. So can't use MyRebel.
I have been going through 3rd party sites. One major thing i wanted to know was whether they are just offering consulting services and will guide us through the process or will they be able to lease us infrastructure or basically a system to start a retail registrar business?

 

[Kate]

Not looking to manage only personal portfolio, but for retail. So can't use MyRebel.

Why not ?
You have the registrar, perhaps you will need to work on a front-end of your own for customers but that's it.

 

[mwzd]

It's a lot cheaper and safer to go via logicboxes or similar.

Remember application fees are payable up front though getting accreditation isn't guaranteed.

Good Luck with this.

 

[glaxxon]

Why not ?
You have the registrar, perhaps you will need to work on a front-end of your own for customers but that's it.

That's because Myrebel only offers leasing for personal use, not commercial, i think.
I don't mind leasing a registrar as long as i have complete control over the managements and the dispute policies.

I'd like to know who offer Registrar leasing?

 

[mwzd]

as long as i have complete control over the managements and the dispute policies.

You will still be governed by both ICANN rules and the law of the land where you incorporate. It isn't as easy as it appears at first glance.

Plus you need access to a legal team to handle all the outside issues which might arise from domain disputes, if any.

And what's even more important is that the domain owners and the registrar are complete independent business entities so a domain dispute doesn't make the registrar liable, which brings you back to your current scenario in any case.

 

[glaxxon]

I understand that i'll be governed by ICANN laws. What i meant by that statement was the difference in control between a registrar and being a reseller. Resellers will be responsible to the registrar they resell for.
Anyways still looking for registrar leasing options...

 

[aras]

Not sure with nowadays prices, being an ICANN accredited registrar for retail purposes makes sense, before you build some customer base. With the basic costs of running an operation and fees for Verisign and Icann itself, i dont see how a domain registrar can stay in business profitable by selling $7 domains.

As far as your question, aside from the application costs which is not that high, they ask you to have an x amount of running capital. Not sure what is the up 2 date amount, but im sure you can find in the web site. Basically that money will not be paid but just shown to ensure you are a legitimate business with assets to cover the operation.

To build a domain registry software at basic level should not take more than a month for a high level software engineer. Godaddy has very diverse services and panels they offer so its hard to estimate without knowing what your objectives are.

 

[Kate]

With the basic costs of running an operation and fees for Verisign and Icann itself, i dont see how a domain registrar can stay in business profitable by selling $7 domains.

Very true. If you have say, a portfolio of 5000 domains, it becomes cost-effective to have your own registrar for your own use.

Now if you want to deal with retail customers, it's completely different. You will need to invest in a website, infrastructure, customer service and legal. Selling domains at $7 a pop is not going to help.

Presently the registry fees for .com/.net domain names are as follows:

• .com $7.34
• .net $4.65

Then you have payment processing fees (credit cards etc), plus the chargebacks and the scammers

That's why registrars will throw added value services like hosting where the margins are higher.

PS: if you are in India, maybe you'll have to cope with a few additional hurdles like currency restrictions, currency fluctuation risks etc. In practice it's easier to incorporate a US company for that purpose.

To be blunt, I think the market is too competitive. That's why registrars are supplementing their income with expired sales and aftermarket auctions.

One thing you could do is become a registrar for a ccTLD like .in, the requirements are often less stringent than becoming an ICANN registrar. Sell ccTLDs under your umbrella and gTLDs as a reseller. Quite a few 'registrars' are doing that.
I think it's best to wait until you have a customer base (if you haven't already), before you invest a lot of money you're not sure to recoup.

PS: with myrebel.com the cost would be around $3K monthly. But you're correct that it's not an option to sell to retail customers.

MyRebel does not allow you to provide registration services to other customers. The purpose of the program is give professional portfolio owners a way to control their own registrar and domain names. Also, if you are thinking about leasing one of their registrars to attempt to catch drops on your own, that wouldn't be an option as the leased registrar's credentials do not provide access to the drop pool.

http://www.dnjournal.com/articles/companies/myrebel.htm

 

[glaxxon]

I understand that, but lets just say i have some good USP's worked out and hopefully getting a customer base enough to cover the expenses won't be a problem.

But right now i'm looking for ways to cut down on the possible costs. Maybe commercial leasing of registrar or some registrar for sale.

As for the website design, i want it done all the way. Good aesthetics and security like or better than Fabulous. Will look at expanding to other extra services maybe later.

So basically right now i need an approx idea on the site cost and maybe some way to reduce initial required investment.

 

[LogicBoxes]

Hello Glaxxon, and everyone here,

The questions asked in this thread, and more have already been answered in an informative webinar (Demystifying ICANN Accreditation) conducted in association with ICANN very recently. You may still find the screencast on TheWHIR.

We hope you find the information helpful for conducting the necessary research for your project.

Cheers

 

[glaxxon]

Thanks for the info....
Anyone know how to lease a registrar for commercial use? Or whether that's even possible?