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ICANN slashes staff and domain prices could rise

ICANN has laid off 33 people, about 7% of its 485 staff, and has raised the specter of increased domain name prices, as it struggles to balance its budget.

[...]

This will be of great interest to domain registrants, particularly those on a tight budget or with large portfolios, as any increases in the transaction fees ICANN charges registries and registrars will inevitably be passed on to their customers.

Registrars currently add a $0.18 per-domain-per-year ICANN fee at their checkouts, and registries pay $0.25 for every add-year, renew-year and transfer. The fees have not changed in at least the 15 years I’ve been writing this blog.

[...]

Read more:

https://domainincite.com/29928-breaking-icann-slashes-staff-and-domain-prices-could-rise
 
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The views expressed on this page by users and staff are their own, not those of NamePros.
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ICANN might want to try the "Stop Spending Money Like Drunken Sailors" strategy first, before raising prices.
 
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ICANN has laid off 33 people, about 7% of its 485 staff, and has raised the specter of increased domain name prices, as it struggles to balance its budget.
Time to relocate from LA to Texas.
 
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For those of us unfamiliar with the Texas/ICANN connection, would you kindly explain?
No special connection between the two...lots of Californians and more than a few companies have relocated to Texas to save money.

Cost of living in LaLa Land (I lived there once upon a time) is insanely high as compared to areas/states with lots of space. ICANN should relocate to an area near a large city center in the South East, IMO.
 
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ICANN might want to try the "Stop Spending Money Like Drunken Sailors" strategy first, before raising prices.

I don't know anything about their budget. Do they have unnecessary spending?

Regardless, any cuts to oversight are terrible given the state of the industry and, as a registrant, I'd rather see the fee double or quadruple if it would result in increased oversight. In my opinion, ICANN policies seem to benefit registry operators at the expense of all other participants and this is another step in that direction. Layoffs and a reduction in oversight are a far better outcome for the registries than increasing fees and maintaining or increasing oversight.

At this point, registrants should be 100% in favor of increased ICANN fees. ICANN is supposed to represent registrants, registrars, and registries. The registrars and registries are contracted parties and according to ICANNs docs:

ICANN's contractual compliance department maintains working relationships with contracted parties

Who's going to lose out if ICANN lacks the resources to act on behalf of all parties? Is it going to be the registries and registrars that have existing relationships and points-of-contact or the registrants who don't even get an email address as a point-of-contact when they submit complaints? When I submitted my complaint, the confirmation comes from a no-reply email address and I had a difficult time following up to find out why nothing was happening.

Obviously I can't say how ICANN plans to redistribute the workload of the people being laid off, but, based on my experience, registrants will be disproportionately neglected if the workload of the remaining employees becomes untenable. At the very least, it's not going to result in a situation where they want to incentivize registrant participation.

They probably can't change their registry contracts at this point, but I think it makes more sense if the ICANN fee is tied to the price of a domain. For example, set the base registration fee at $0.18 and the baseline renewal fee at $0.25. Then tie everything else to .com. If a .com domain costs $10.26 per year, a domain on a TLD charging $20.52 should pay $0.36 fee for registration and a $0.50 fee for renewal.

Keep the price controls in place on .com and do:

Code:
domain price / .com domain price * baseline ICANN fee

In my opinion, that can be justified with the same reasoning the registries use to set high prices. Fewer registrants on a TLD means per-domain prices need to be higher cover costs. Plus, if registries are charging exorbitant prices, at least there's more money going to ICANN (aka oversight) which should help registrants when things go too far.

It works for premium domains too. If someone has a premium domain that costs $102.60 per year, the ICANN fee would be $1.80 for registration and $2.50 for renewal. Premium domains can have per-domain pricing and that makes each domain somewhat unique. They're more difficult to oversee and, without having any metrics, I would guess are more likely to elicit registrant complaints. Assuming that's the case, they should have higher ICANN fees.

In addition to that, I think the ICANN fee should increase annually and the increase should be tied to increases in the price of .com domains.

Once you register a domain the registry has a monopoly position against you because there's exactly one registry that you're beholden to forever after the initial registration. Having strong oversight in that scenario is critical for the long term health of the industry and I think ICANN should be given broad leeway by all industry participants to increase fees as needed.
 
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For those of us unfamiliar with the Texas/ICANN connection, would you kindly explain?
Notice, NamesCon is held in Texas, every year?

Also, have you noticed, many moving HQ from California to Texas, with no state income tax; and one of the most business-friendly states to save?
Texas attracted the most HQ moves between 2018 and 2023 (209), with Austin (66), Dallas (32), and Houston (25) being the big winners. The cities that lost the most headquarters offices were San Francisco/San Jose (79), Los Angeles (50), and New York City (21). Apr 14, 2024
Source: https://propmodo.com/taking-a-closer-look-at-the-wave-of-corporate-hq-relocations/
 
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They probably can't change their registry contracts at this point, but I think it makes more sense if the ICANN fee is tied to the price of a domain. For example, set the base registration fee at $0.18 and the baseline renewal fee at $0.25. Then tie everything else to .com. If a .com domain costs $10.26 per year, a domain on a TLD charging $20.52 should pay $0.36 fee for registration and a $0.50 fee for renewal.

Keep the price controls in place on .com and do:

Code:
domain price / .com domain price * baseline ICANN fee
Great concept. Increase the income to ICANN for those more expensive domains. After all, those might be more likely to lead to cases with them.
Overall, I'm surprised they that the staffing isn't being increased instead.

Also, have you noticed, many moving HQ from California to Texas, with no state income tax; and one of the most business-friendly states to save?

Source: https://propmodo.com/taking-a-closer-look-at-the-wave-of-corporate-hq-relocations/
So, perhaps ICANN could move their HQ, increase their staffing AND have some of best barbecues in the world at the same time!
 
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Wow, 485 members of organization with salaries, indeed like a very big company. I don't know that ICANN job tasks are that complicated. I thought just accepting apply of new tlds and give acrceditation to registrars.
 
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I don't know anything about their budget. Do they have unnecessary spending?

There is a site out there that covers the spending levels of ICANN and some of it is quite lavish, even for my expectations.

The minute the US ceded control over ICANN to foreign interest was a dark one indeed and all we've seen since is one money-making scheme after another, with lots of sweetheart TLD contracts allowing consistent price increases. It's pretty clear ICANN was viewed as a cash cow to be milked.
 
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What the F does icaan do anyway?
 
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ICANN is non-profit odd that they want to increase prices. It's sad they cut staff.
 
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Non profit is so F oxymoron
NRA NFL etc are non profit but they make so much money

Tax breaks.....
 
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And non-profits have some of the highest executive salaries, as non-profit doesn't mean they are unprofitable, only that they need to spend it all (and more) in order to qualify for tax-exemptions.

I believe the NFL gave up it's non-profit status year ago (in order to gain in other areas such as not publicizing their figures), but prior to that, the league would actually book a net loss on their business. It's truly insane.
 
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Wow, 485 members of organization with salaries, indeed like a very big company. I don't know that ICANN job tasks are that complicated. I thought just accepting apply of new tlds and give accreditation to registrars.
The original IANA function that preceded ICANN was calculated as 1/4 of Jon Postel's time. About ten hours a week (the rest of his time was as RFC Editor and a few other USC/ISI tasks). The bloat and "feature creep" that ICANN created is staggering.
 
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I not believe in non profit at all, all of them are in for profit, even the ones using ORG websites, it is a type of business but with a less suggestive direction.
Isn't that the automation must make everything cheaper? Cause I not see where it is going, who will buy your crap of AI products if people don't have jobs to make money so they buy them from you!
 
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ICANN financial data dump a damp squib?

It was supposed to be a means for ICANN to improve the transparency of its financials, but the latest output of a decade-long accountability project appears to be a damp squib, perhaps not even meeting community requirements.

Read more:

https://domainincite.com/29954-icann-financial-data-dump-a-damp-squib
 
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