Becoming a domain registrar

Carl009

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Hi

Is it expensive becoming a domain registrar?

Do domain registrars make a good margin on domain sales? For example some providers are able to offer very low prices for domains such as $1 per year

Do companies wanting to become a registrar apply with all providers? .co.uk .com etc

Apologies for all the questions :)
 

Kieran2001

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It's very expensive to become an ICANN Accredited Provider. There's a registration fee of $3,500 to become a Providers, and there's yearly fees of $4,000. They also require a capital of around $70,000 to prove you can afford on going fees.

Domains that are sold below the At-Cost Price, also known as wholesale, as determined by the registery, will be sold at a loss. GoDaddy does this as they have enough money to make up the short fall, and they expect to make this money back with the renewal rates.
 

Blizbox

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An alternative option if your on a budget is to become a reseller for then major domain sellers such as whom/namecheap.
The margin is not great by this method, which is often only offered as part of hosting to make the users experience simpler.
The method kiaran explained is what would give you more of a return, as you would get domains as bulk, but that requires a great deal of investment
 
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