How To Become A Domain Name Registrar

One of the hallmarks of the Internet is its unregulated, uncensored content. Virtually anyone can own and operate a Web site affordably. But one prominent area of the 'Net is regulated and costs a lot of money to join—the business of domain name registration.

ICANN, the U.S.-based Internet Corporation for Assigned Names and Numbers, oversees the businesses that register domain names for end users. Because it is the governing body for the regulation of old and designation of new TLDs (top-level domains; the identifying extension at the end of a URL), it determines who can and cannot register domain names that have ICANN-designated TLDs.

The good news is that the steps for applying to become an ICANN-accredited registrar are clearly spelled out on the ICANN site (www.icann.org/registrars/accreditation.htm). Application is open to anyone—that is, anyone with a Web-based business, a big pile of cash, and good credit.

Forms. Your first step is to complete the ICANN Registrar Accreditation Application and submit it with supporting documents and a nonrefundable $2,500 application fee to ICANN headquarters in Marina del Rey, Calif. A copy of the application is available at the ICANN Web site, but online application is not permissible. Hard copies of the application and supporting documents, along with the fee, must be delivered to ICANN offices.

The application begins with a request for general information about your business or proposed business, such as its location; legal description; and the names of its directors, officers, and anyone owning at least 5% of the company.

When you get to the applications tenth question, you'll see that the process of applying for ICANN approval is not for the faint of heart. This is a 15-part inquiry that seeks a thorough disclosure of your business's capabilities (or proposed capabilities) and overall company plan. You'll need to address topics such as system security, information processing systems, the number of domain name registrations you anticipate handling in a month's time, insurance coverage of your business, and working capital.

The supporting documents you'll need to include with the application are indicated within the questionnaire. One such document is proof of insurance coverage for your business; another is a copy of your company's most recent annual report, if applicable.

Funding. Now, get out your checkbook. As mentioned, you'll need to send the nonrefundable registration fee of $2,500USD along with your application. If ICANN approves you as a registrar, you'll need to come up with more money for each TLD you register domain names in. Annually, the accreditation fee for one TLD is $4,000, plus $500 for each additional TLD. Currently, ICANN is accrediting registrars in the .biz, .com, .info, .name, .net, and .org TLDs.

But wait—there's more. You must prove to ICANN that you have at least $70,000 in working capital, cash, or credit. For proof, you can submit an independently verified financial statement of your capital. In addition, ICANN will assess your business a quarterly accreditation fee after you have begun registering names. This fee goes to support the operating costs of ICANN, a nonprofit governing body founded four years ago by a coalition of Internet-related groups. The fee will vary depending on the number of names you register and the number of all names ICANN-accredited registrars register.

ICANN advises that these costs are not necessarily all the expenses you might encounter to get your registrar business up and running, but they do include all that you'll need to pay for ICANN accreditation.

Final considerations. Once you have submitted all the necessary forms and fees, ICANN will notify you by email to let you know if you won accreditation status. With your approval, it will also list your business's name and contact information on its Web site in a section listing all ICANN-accredited registrars. (You may choose to delay the announcement of your accreditation for business purposes.)

Next, you must read, sign, and return a Registrar Accreditation Agreement to ICANN. A copy of this agreement is posted at www.icann.org/registrars/ra-agreement-17may01.htm. A few weeks after submitting this agreement to ICANN, you will be required to send in your annual TLD fees. Once you pass testing and become operational, you may begin registering domain names.



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