How can I become an accredited domain registrar?
Becoming an accredited registrar is not for everyone. You will need to have a well-funded company and meet extensive technical requirements. Companies simply wanting to offer registration services to their customers would normally consider becoming a domain reseller for an existing registrar, which is much easier and less expensive. (See “What is a registrar?” and “How can I offer domain registration services?“)
If you do wish to become an accredited registrar, the accreditation process is done through ICANN. the governing body for the domain name system. It takes approximately three to four months with startup costs of around $12,000 US (operating on a shoestring budget) with around $5k in annual costs. You’ll also need to prove that you have at least $70,000 US in working capital, and deposit ample funds from which your registrations costs will be debited from. These are ballpark figures only. For more specific details, keep reading.
The steps for becoming an accredited registrar are
1. Apply for Registrar Accreditation. You must complete an ICANN Registrar Accreditation Application and send it to ICANN along with a non-refundable US $2,500 application fee. You must submit the Application and review the Instructions for Completing the Application and the current Registrar Accreditation Agreement in order to apply.
2. Receive Notification That You Qualify for Registrar Accreditation. After completing its review of your application and conducting any necessary follow-up inquiries, ICANN will inform you by e-mail of its decision to accredit your business or not. ICANN will announce your accreditation, along with contact information for your company on its web site, unless you specify that you would prefer, for business reasons, to postpone the announcement of your accreditation.
3. Sign an Accreditation Agreement with ICANN. The last step in the ICANN Registrar Accreditation process is for you to execute a Registrar Accreditation Agreement with ICANN. The current version of the agreement was posted May 17, 2001. This is a standard document that all registrars sign with ICANN.
ICANN will send you two copies of the Agreement. Once you have signed both and returned them to ICANN, we will have them signed on ICANN’s behalf. ICANN will then notify the applicable registries of your accreditation so they can contact you to start signing agreements with them and get your systems prepared.
4. Receive Fully Executed Agreement from ICANN and Pay Accreditation Fee. Two or three weeks after you return your signed copies of the Registrar Accreditation Agreement to ICANN, you will recieve one of the originals back, fully executed, for your records. You will also receive an invoice for the annual fixed portion of the accreditation fee, which equals US$4,000 for the first TLD, and US$500 for each additional TLD.
5. Complete Preparation of Your Agreement with Customers and Uniform Domain-Name Dispute Policy. The ICANN Registrar Accreditation Agreement provides some guidance on these requirements. ICANN adopted a Uniform Dispute Resolution Policy which all accredited registrars are required to follow. You may also wish to implement a Privacy Policy to comply with the requirements of your accreditation agreement.
6. Inaugurate Your Service. After the above steps have been completed, you should be in a position to begin offering services to the public as soon as you pass testing and become operational with the respective registries for which you have been accredited.
Financial considerations
This is not an exhaustive list of all costs involved in becoming an accredited registrar, but is meant only as a helpful listing of many the costs registrar applicants may encounter in connection with the approval process.
To ICANN:
- US$2,500 non-refundable application fee, to be submitted with application.
- US$4,000 for the first TLD, and US$500 for each additional TLD yearly accreditation fee.
- US$70,000 in working capital requirement. THIS DOES NOT NEED TO BE PAID TO ICANN; ICANN requires only that you demonstrate (by submitting an independently verified financial statement) that you have at least this much liquid capital (cash or credit) before your ICANN accreditation becomes effective.
- Quarterly accreditation fee (variable portion) paid once you begin registering domain names. This fee represents a portion of ICANN’s operating costs based partly on your share of overall domain name registrations in the TLDs for which you are accredited, so it will vary depending on your volume of names registered as well as the total volume of all names registered.
More information on the accreditation process can be found at
http://www.icann.org/registrars/accreditation.htm
Update: coreymail adds, “This is the beginning. The hardest part is showing you have the computer-systems/servers, technical resources and people, security procedures, and ability to handle such a large project. ICANN assumes you are running a warehouse of systems with a Microsoft (OK, not quite, but close) level of operations ready to go.” Thanks! -rj-
Posted: December 10th, 2007 under ICANN, Registrars.
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