20i Reseller Hosting

ICANN Accreditation

Discussion in 'The Bar' started by Ben Thomas, Feb 13, 2020 at 1:14 PM.

  1. Ben Thomas

    Ben Thomas Well-Known Member Full Member

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    Has anybody on this forum bothered with this? It seems extremely worthwhile at first glance - equivalent £0.14p registrations for every 1 year .com registered, lol. If only Nominet took a leaf out of this book. But, the $4000 annual fee is fairly large if you don't have the customer base to make enough to cover that and profit on top.

    Granted that £3069 is considerably better sounding than $4000, it would still take 256, 1 year .COM registrations at a fairly average-for-industry price of £11.99 to make it up before entering profit. Does anybody have any experience with the time scales and stuff surrounding this? For example, how many customers generally buy more than 1 .com a year? At 14p a pop, it seems ludicrously profitable once you've made your ICANN fee back.
     
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    Acorn Domains Elite Member

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  3. wizard

    wizard Well-Known Member

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    ....
     
    Last edited: Feb 13, 2020 at 10:03 PM
  4. dig bick United Kingdom

    dig bick Active Member

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  5. super-whois United Kingdom

    super-whois Active Member

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    I think someone's seen the ICANN fee and forgot about the Verisign fee...
     
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  6. dig bick United Kingdom

    dig bick Active Member

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  7. Siusaidh United Kingdom

    Siusaidh Active Member

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    Yeah, this :

    2020 = 7% rise
    2021 = a further 7% rise
    2022 = a further 7% rise
    2023 = a further 7% rise
    2024 = a further 7% rise
    2025 = a further 7% rise
    2026 = a further 7% rise
    2027 = a further 7% rise

    They've negotiated the right to raise .com prices by 7% a year 8 times in the coming 10 years, so if they choose to, they have freedom to charge these prices.
     
  8. webber United Kingdom

    webber Active Member

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    That's just the ICANN fee. The domain itself costs $7.85 @ Verisign
    You need to hit some big sales for it to be worth it.
    Hence why so few from the UK: https://www.icann.org/registrar-reports/accreditation-qualified-list.html
     
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  9. Fred Steven Cyprus

    Fred Steven Member

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  10. Ben Thomas

    Ben Thomas Well-Known Member Full Member

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  11. Whois-Search United Kingdom

    Whois-Search Well-Known Member

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    Having done it myself I can tell you those $4000 a year ICANN fees are just the tip of the iceberg! How about $1000 membership of the RrSG or travel to ICANN meetings (3 times a year) to learn about ICANN compliance? 24 hour abuse line anyone?

    Then imagine signing up to 10+ registries and not being given a credit limit. Nominet is very rare in that it gives you a credit limit for .uk - most gTLDs require money on account.

    Then imagine the US registries like Verisign only take USD via ACH on a working day (when they are open). So even if you use Transferwise to send them the money you have to send it overnight to get there on a workday. Or pay extra to wire it the same day and wait for Verisign to open about 2pm UK time. I’m now an expert on US bank holidays !

    Then imagine it’s not a level playing field on new creates any more... there are discounts the bigger you are. There is even a promotion on drop catching .com names and one registry (.io) gets cheaper the more DUM you have !

    Then imagine selling new premium gTLDs for $99 - $3000 each when you only have $5000 deposited with Donuts.

    I have a 50 inch screen in my office with a live epp balance at each registry ... like a stock exchange. When it goes red I push more money via TransferWise :)
     
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    Last edited: Feb 14, 2020 at 2:14 PM
  12. LCHappy United Kingdom

    LCHappy Member

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    Can't you just tell them you are Bulgarian and those rules don't apply?
     
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  13. Siusaidh United Kingdom

    Siusaidh Active Member

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    And with the increases DoC have recently authorised, by 2027 VeriSign are allowed to be charging $13.42 a domain.

    Unless you are an ICANN-accredited registrar, that price is likely to be higher, taking into account the registrar's additional rate.
     
  14. Whois-Search United Kingdom

    Whois-Search Well-Known Member

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    There are three yearly fees for ICANN accreditation (plus $3500 just to apply):
    1. $4000 yearly accreditation fee which you can pay at $1000 a quarter.

    2. $0.18 per name per year Transaction-based gTLD fee which you pay quarterly. At the same time as the Transaction-based fees you pay the Variable fee. We are doing well over $1000 per quarter here.

    3. Variable fee is the ICANN registrar budget US$3.42 million per year, divided among all accredited registrars, with two-thirds forgiveness automatically granted to qualified registrars. To be eligible for forgiveness, the registrar must have: (1) less than 350,000 gTLD names under its management; and (2) no more than 200 attempted adds per successful net add in any TLD. We currently pay about $131 per quarter here.
    So even before you start registering any names you have to pay $4,524 per year. Then pay $0.18 for every year (renewal , create , transfer).

    Then you actually have to get the money to ICANN’s bank in California. You can easy lose another $400 in bank fees and exchange rate paying quarterly.

    The other older gTLDs are already getting to that level:

    .biz $12.63
    .info $11.92
    .org $9.93

    Verisign is just playing catch-up now the $7.85 cap is being taken off.
     
    Last edited: Feb 15, 2020 at 11:44 AM
  15. Ben Thomas

    Ben Thomas Well-Known Member Full Member

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    Seems expensive from the outside but I suppose if you're making bank on gTLD's it's not that bad. I mean realistically, you only need to sell a decentish .COM to afford to pay all the fees for the year. Then if you've got a sizeable registrant base you'd probably be ok.
     
  16. Whois-Search United Kingdom

    Whois-Search Well-Known Member

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    Well yes but then you need the EPP platform and to do all the technical compliance. Unlike Nominet you can’t just go in and use the web domain manager (WDM) which doesn’t exist at Verisign.

    You have to write the EPP code for each registry and then store copies of the emails sent to the Registrant (even if it’s you). ICANN can audit almost anything from the renewal emails to transfer requests on any name. Still you can buy all that off the shelf now with logic boxes: https://www.logicboxes.com

    We have one too (for rent) if anyone interested.
     
  17. Ben Thomas

    Ben Thomas Well-Known Member Full Member

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    I've used LogicBoxes before, I think through ResellerClub. Guessing you can just link your own ICANN credentials to it (if you have them) ? In the grander scheme of things, it doesn't appear too bad. So long as you go into it with an already sufficient userbase. Perhaps if you've been reselling for a number of years and have a decent amount of users/traffic/exposure it'd make it easier. Still, I didn't realise such costings were involved aside from the 4k fee.
     
  18. Whois-Search United Kingdom

    Whois-Search Well-Known Member

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    Yes they will even do your accreditation for you: https://www.accreditation.com

    However yes I wouldn’t do it without 25,000+ names first as a reseller. You need the cash flow.

    Plus maybe the UK isn’t the best place to set one up. In hindsight Delaware (USA) might be better with a US bank account.
     
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  19. Ben Thomas

    Ben Thomas Well-Known Member Full Member

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    Thanks for your insight @Whois-Search.