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How To Make Your Own Domain Registrar?

Discussion in 'Introductions' started by mitchyjones, Feb 22, 2013.

  1. mitchyjones

    mitchyjones Newbie

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    How would you set up one of these businesses?

    I assume it takes a lot of hard work and time, but I'm quite curious because there are so many of these sites who all claim to be the best for some reason or other, and are all quite expensive.

    Has anyone had any experience in this sort of thing?

    Thanks.
     
  2. bryanon

    bryanon Executive VIP Premium Member

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    It takes exactly as much hard work and time than setting up any other business. Getting the rights to sell domains is the easiest part - just sign up with enom or a similar company as a reseller and you're done. Even some large companies (such as Name.com) are enom's resellers.

    The difficult part (like with any business) is finding your competitive edge and getting your client base. This is especially difficult on this market as you will have to deal with a lot of competition and price dumping.

    Not really. Registrars' profit margins are actually extremely low as the vast majority of what you pay for a domain name goes into covering expenses.
     
  3. mitchyjones

    mitchyjones Newbie

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    There must be room to put their price down a little bit. For example GoDaddy have about 10million customers, lets say they charge an average of $3 for a domain. That's $30 million. What expenses are there from this sort of thing?
     
  4. keinehabe

    keinehabe Supreme Member

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    true ... then spend $20 mil on advertising , $5-6 mil on operations costs , $% taxes :) ... plus ... hard to think someone will be able to actually steal customers from those large companies ... I mean average joe's ... not peoples who simply change their registrar because of the shitty work godaddy do ....
    Money's on registrar business don't come from the fees of the domains ... profit comes from additional services ( webhosting , ssl certificates , advertising , residual traffic , webdesign & so on ... )

    To answer to your original question ... there are some fees involved to become ICAAN reg ... if I`m not wrong is around $100k ? ... check their official site long time didn't checked so .... :)
     
  5. bryanon

    bryanon Executive VIP Premium Member

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    Not really. Even if you want to become an ICANN registrar directly (and not resell) the fee is only $3.5k and $4k a year but you do indeed have to demonstrate that you have at least $70k of capital available, as well as meet their qualification criteria, which involves having a sufficient infrastructure in place to be able to handle volume - this is what gets costly.

    Read more here: http://www.icann.org/en/resources/registrars/accreditation
     
  6. bryanon

    bryanon Executive VIP Premium Member

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    This is where you're dead wrong. You're forgetting that by becoming an accredited registrar, you still need to pay for the domain names that you re-sell. Currently the registry fee for .com is $7.85, meaning that if you were to sell domains at $3 a pop you would produce a loss of $4.85 per domain name.
     
  7. mitchyjones

    mitchyjones Newbie

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    gotta be honest, i didnt think of all this regulation and what not. Thanks for your knowledge and advice. I dont think il delve much deeper into this subject.