question What are the costs involved in starting your own Registrar?

[WhoaDomain.com]

What are the costs involved in starting your own Registrar?

Just curious. I'm sure many have thought of it.

and yes I know it's expensive. It's understood but how much? plus to make it successful how much? as in promotion and advertising.

any one with real experience? or have tried and failed?

would be a nice read if people submit input.

Good info wanted. Thanks.

 

[creataweb]

$10,000,000*


*just kidding, actual number may be lower.

 

[creataweb]

Kidding aside, starting your own registrar will be a significant investment upfront.

You can try to become a reseller instead which is a lot cheaper. Hope that helps.

 

[WhoaDomain.com]

$10,000,000

damn! that much? I thought it was lower? like $xx,xxx or on the high end $xxx,xxx?

 

[WhoaDomain.com]

Kidding aside, starting your own registrar will be a significant investment upfront.

You can try to become a reseller instead which is a lot cheaper. Hope that helps.

there's a reason I asked. was waiting for replies first. but ok

I was thinking....with these occassional "specials" over at Domain.com and resellers netfirms and dotster for $1.99 and the occasional godaddy and name.com 99 cent .com reg's.

why doesn't someone start a registrar that permanently have $1.99 and 99 cent .com regs all day everyday plus renewals?

I would assume it's because of the price to own a registrar or the at least the rights to be able to register .com,.net and .org from Verisign?

I can imagine people would leave all thee other registrars if a registrar opened up shop offering $1.99 and 99 cent registrations and renewals for life permanently and not just occassionally.

would such a registrar go out of business?

I'm assuming big here that even with these 99 cent specials or $1.99 specials that these registrars are still making enough profit to cover overhead costs.

 

[creataweb]

there's a reason I asked. was waiting for replies first. but ok

I was thinking....with these occassional "specials" over at Domain.com and resellers netfirms and dotster for $1.99 and the occasional godaddy and name.com 99 cent .com reg's.

why doesn't someone start a registrar that permanently have $1.99 and 99 cent .com regs all day everyday plus renewals?

I would assume it's because of the price to own a registrar or the at least the rights to be able to register .com,.net and .org from Verisign?

I can imagine people would leave all thee other registrars if a registrar opened up shop offering $1.99 and 99 cent registrations and renewals for life permanently and not just occassionally.

would such a registrar go out of business?

I'm assuming big here that even with these 99 cent specials or $1.99 specials that these registrars are still making enough profit to cover overhead costs.

They have to pay 2 different fees for each .com reg'd for example. Those fees add up to around $8 +/- and all those places selling for less are taking a loss upfront for each .com sold.

Maybe they will make it up via hosting sales and other services. Also higher renewals, which obviously will be 1 year or more later.

 

[WhoaDomain.com]

Wow, just wow. You really aren't smart, are you?

no I remember reading somewhere that the license from verisign to register just .com was I think about $50K but I can't find that article anywhere now. and I think it was $50K yearly?

this is why I asked. and I can't see the cost being more than $1 million year. I'm sure it's not a one time fee and has to be a yearly license fee.

 

[creataweb]

Yes the fees can be high to start out. An interesting story to read is Godaddy's start by Bob Parsons.

 

[Ted.T]

1. Verisign charges around $8/.com domain
2. Specials are specials, meant to attract new customers, not revenue.
3. Don't be naive. If a registrar costed XX,XXX, every domainer would be able to find some domainer-friends and start their own registrar. While Dropcatch would have thousands and tens of thousands.

 

[WhoaDomain.com]

They have to pay 2 different fees for each .com reg'd for example. Those fees add up to around $8 +/- and all those places selling for less are taking a loss upfront for each .com sold.

Maybe they will make it up via hosting sales and other services. Also higher renewals, which obviously will be 1 year or more later.

Thanks for that. see hmmm that kind helps my idea. so they are a taking a loss for sure when offering these specials.

and the hope is these domains will renew at higher cost later which often never does as most will be transferred out via domain sales.

I think question answered. I'll hold off on saying the idea in this thread for obvious reasons.

 

[WhoaDomain.com]

1. Verisign charges around $8/.com domain
2. Specials are specials, meant to attract new customers, not revenue.
3. Don't be naive. If a registrar costed XX,XXX, every domainer would be able to find some domainer-friends and start their own registrar. While Dropcatch would have thousands and tens of thousands.

This is why I started this thread to confirm that the price I read was wrong. I thought it was a bit LOW lol Createweb's price of $10 million was more believable lol

 

[Kate]

https://www.icann.org/resources/pages/accreditation-2012-02-25-en

 

[WhoaDomain.com]

https://www.icann.org/resources/pages/accreditation-2012-02-25-en

thanks. see. that's another thing I did not even think about. I'm sure Icann will have fees to even start a Registrar.

I'm never gonna start a Registrar but it's good for knowledge sake to know the in's and out's

Thanks Kate. always a pleasure to hear from you.

 

[Lite]

DomainSherpa - Build Your Own Registrar, Ray King Tells You How
http://www.domainsherpa.com/ray-king-porkbun/

 

[WhoaDomain.com]

DomainSherpa - Build Your Own Registrar, Ray King Tells You How
http://www.domainsherpa.com/ray-king-porkbun/

Thanks Lite. I would click Thanks but I want to be able to reference this later.

 

[equity78]

Thread has been cleaned up, people are allowed to ask a question and replies need to be on topic to the question. Feel free to contact Eric Lyon if you think a member is violating a rule by starting a thread you deem inappropriate.

 

[Cdomains]

why doesn't someone start a registrar that permanently have $1.99 and 99 cent .com regs all day everyday

These low reg fees are just a way to get you to sign up with the registrar in hopes you will stay and not transfer out to another registrar when it is time to renew.

They lose money on these regs and hope to make it back when you renew a year later, and hopefully for many years, and at much higher renewal fees.

By getting you to sign up they also hope you will buy their other services as well.

They consider these low fees as "advertising" costs, and I believe it is a cheaper and more direct way to get new customers than traditional advertising.

 

[Cdomains]

What are the costs involved in starting your own Registrar?

Too much!!

Too much money.
Too much time.
Too much in lost sanity.
Too much speculation.

 

[DN_Hunter]

These low reg fees are just a way to get you to sign up with the registrar in hopes you will stay and not transfer out to another registrar when it is time to renew.

They lose money on these regs and hope to make it back when you renew a year later, and hopefully for many years, and at much higher renewal fees.

By getting you to sign up they also hope you will buy their other services as well.

They consider these low fees as "advertising" costs, and I believe it is a cheaper and more direct way to get new customers than traditional advertising.

And they also make money on "Expired Domain Auctions" -- I mean they auto-renew the name, and then auction it off. If it does not sell, they get a refund for the renewal fee... have you seen some of the daily Expired Auction Prices that GoDaddy gets???

 

[WhoaDomain.com]

These low reg fees are just a way to get you to sign up with the registrar in hopes you will stay and not transfer out to another registrar when it is time to renew.

They lose money on these regs and hope to make it back when you renew a year later, and hopefully for many years, and at much higher renewal fees.

By getting you to sign up they also hope you will buy their other services as well.

They consider these low fees as "advertising" costs, and I believe it is a cheaper and more direct way to get new customers than traditional advertising.

You mentioned advertising? People always say registrar's lose money on these specials. I read somewhere whenever companies look like they are giving it away practically they just have good accountants that chalk it up to "advertising and promotion cost or losses" ie tax deduction. So can't be that bad. I wait to be corrected as I'm not sure.

 

[Cdomains]

You mentioned advertising? People always say registrar's lose money on these specials. I read somewhere whenever companies look like they are giving it away practically they just have good accountants that chalk it up to "advertising and promotion cost or losses" ie tax deduction. So can't be that bad. I wait to be corrected as I'm not sure.

Like I said - advertising!

 

[WhoaDomain.com]

Like I said - advertising!

Tax deduction it is then! Like those las Vegas off peak 3 night stay at a Vegas hotel for free coupons. Just have to pay the taxes and fees.

Hotels purposefully give these out during off season to get a tax deduction at end of year for " Non performing rooms" so win win for them.