Becoming a domain name registrar involves a complex and regulated process that can be expensive. Here are some factors that contribute to the high cost of becoming a registrar:
ICANN fees: ICANN (Internet Corporation for Assigned Names and Numbers) is the organization responsible for managing the domain name system. ICANN charges fees to new registrars as part of the accreditation process, which can be quite substantial.
Technical infrastructure: To become a registrar, you must have a robust technical infrastructure, including servers, databases, and software. Setting up and maintaining this infrastructure requires a significant investment.
Compliance requirements: As a registrar, you must comply with various legal and regulatory requirements, including data protection, consumer protection, and anti-money laundering regulations. Meeting these requirements can take time and effort.
Marketing and customer acquisition: Once you become a registrar, you must attract and retain customers to make the business viable. This requires marketing and advertising, which can also be costly.