Demystifying ICANN Accreditation. Sandeep Ramchandani Director, LogicBoxes

Transcription

1 Demystifying ICANN Accreditation Sandeep Ramchandani Director, LogicBoxes 1

2 1. Introduction 2

3 Overview For many years now, there have been a number of myths surrounding ICANN Accreditation, its eligibility, feasibility, pros and cons, its importance for webhosts, resellers, and the Industry as a whole. Through this session, let s try and attempt to Demystify ICANN Accreditation 3

4 2. Why ICANN Accreditation? 4

5 The Profit Advantage Domain Registration / Renewal Active Expired 1-45 Days RGP 30 Days Deletion 5 Days BUY AT BASE COST: Registrars buy directly from the Registries TLD Average Wholesale Cost Registrar Cost.com net org info biz mobi % Savings 12.2% 30.8% 22.5% 22.5% 21.8% 44.8% 5

6 The Profit Advantage Domain Registration / Renewal Active Expired 1-45 Days RGP 30 Days Deletion 5 Days $150,000 $130,000 $110,000 $90,000 $70,000 Annual Costs of Operation This gap will keep increasing with time and domains growth Year 1 Year 2 Year 3 Year 4 Year 5 Registrar $76,545 $86,534 $98,022 $111,233 $126,425 Reseller $88,048 $101,255 $116,443 $133,909 $153,996 As Volumes grow, Savings keep increasing Potential Savings as a Registrar 10,000 Domains Annual Savings $7,892 Monthly Savings $658 20,000 Domains $21,684 $1,807 30,000 Domains $35,476 $2,956 6

7 The Profit Advantage Domain Registration / Renewal Active Expired 1-45 Days RGP 30 Days Deletion 5 Days REGISTRY PROMOS 1. In 2010 alone, Registrars enjoyed these Registry Promos: A certain as low as $0.25! A premium $5.99 $1 straight off + $5 off renewals for a popular gtld All new $1 for another gtld Achieve targets and get new registrations at $0.25 a year 7

8 The Profit Advantage Domain Registration / Renewal Active Expired 1-45 Days RGP 30 Days Deletion 5 Days REGISTRY PROMOS 2. In 2010 alone, Registrars enjoyed these Registry Marketing Grants: Marketing grant of upto $125,000 from one of the largest Registries Co-marketing funds worth $20,000 from another Registry Upfront discount on domains + equal additional funds to match Registrar s marketing budget 8

9 The Profit Advantage Domain Registration / Renewal Active Expired 1-45 Days RGP 30 Days Deletion 5 Days REGISTRY PROMOS 3. Advent of new gtlds has forced incumbents to scramble for market share 4. gtld Registry sales promos must be made available to all ICANN Accredited Registrars regardless of size or domicile. 9

10 The Profit Advantage Domain Registration / Renewal Active Expired 1-45 Days RGP 30 Days Deletion 5 Days DOMAIN PARKING Park expired / coming soon / suspended domains Controversial when first introduced, some went overboard Process considered fair and acceptable when done right There are parking companies specialized in monetizing registrar and hoster traffic. Eg. Skenzo 10

11 The Profit Advantage Domain Registration / Renewal Active Expired 1-45 Days RGP 30 Days Deletion 5 Days DOMAIN PARKING Your LOGO 11

12 The Profit Advantage Domain Registration / Renewal Active Expired 1-45 Days RGP 30 Days Deletion 5 Days SMART PARKING You currently delete all domains your customers don t renew They land up with drop catchers (huge business) Registrars renew the high value, high traffic domain names Your parking companies automate this process 12

13 The Profit Advantage Domain Registration / Renewal Active Expired 1-45 Days RGP 30 Days Deletion 5 Days TRANSFER FULFILMENT Even if the domain is not worth smart parking, it might be of value to someone else Offer the domain to an auction house, get your fair share Process can be completely automated 13

14 Additional Revenue Opportunities Post Expiry Handling Reseller vs. Registrar Comparison Chart RESELLER Domain Expires Domain Expires REGISTRAR Goes to Customer Yes Renew No Park Renew Yes Goes to Customer Delete No Smart Park Yes Renew Available Pool Grabbed by Auction House No Transfer Fulfillment No Delete Yes Domain moved to winner 14

15 Increased Marketability Domain Names are an entry point Target International Markets Build a Reseller Channel Differentiation 15

16 Increased Marketability Consumer & Industry Recognition Every WHOIS request promotes your brand = Trust Stability 16

17 Ultimate Control & Security Ultimate Control: Freedom from Registrar Policies Ultimate Security: Registrar level domain locking Consolidate domains under your own Registrar Access to all Registry commands, s and notifications 17

18 Ultimate Control & Security Own your Customers (completely) Treat VIP domains deservingly 18

19 3. Becoming an ICANN Accredited Registrar 19

20 Documents Required Application Form Working Capital to the tune of US$70,000 Commercial General Liability Insurance for $500K Audited financial documents (for resellers) Company Incorporation Certificate 20

21 Costs Involved One Time ICANN Application Fee: $3,500 Annual ICANN Fee: $4,000 ICANN Quarterly Variable Fee: ~$1200/yr (2/3rd waiver possible) ICANN per domain fee: $0.18 Applicable per domain registry fees 21

22 4. Financial Analysis Is ICANN Accreditation Really Feasible? Let s look closely at the numbers 22

23 Financial Analysis Domain Volumes 15,000 Annual Growth % 15% Particulars Costs as your own Registrar using LogicBoxes Costs as a Reseller Per Domain Costs Year 1 Year 2 Year 1 Year 2 TLD No. of Domains Per Domain Cost Total Cost Total Cost + Growth Per Domain Cost Total Cost Total Cost.com Monetization Options 10,950 Registrar $7.52 $82,344 Monetization Options $94,696 Reseller $8.60 Monetization $94,170 Options $108,296.net Registrar 1,575 Cost Benefits $5.58 $8,789 Yearly $10,107 $19,888 $8.06 Yearly $12,695 $14,599 Transfer Fulfilment $2,100 $0.00.org 1,200 $6.93 $8,316 $9,563 $8.94 $10,728 $12,337 Domain Parking Registry Monetization Promos* $3,000 As a Registrar $0.00.info Total 900 $6.93 $6,237 $5,100 $7,173 $8.94 $0 $8,046 $9,253 Promo.biz by one of 375 the largest gtld The Registrar $7.03 Profit $2,636 Advantage $3,032 $5,100 $8.99 $3,371 $3,877 Marketing grant Registry $125,000 Total 15,000 C $108,322 $124,570 $129,010 $148,361 Fixed Recurring Costs Year 1 Year 2 Year 1 Year 2 Promo by another leading gtld Registry Target based marketing grant $15,000 ICANN And Accreditation these Fee were just 3 examples. $4,000 Others $4,000 opportunities include: $0 $0 ICANN Variable Fee $1,400 $1,400 $0 $0 Generous Marketing Grants Co-Marketing Activities Performance Based Discounts Insurance Premium Approx. 50% discount $500 on all registrations Incentive by a major gtld $500 $0 $0 upsold across another gtld $8,500 Total D $5,900 $5,900 $0 $0 Funding we helped raise for a specific client in 2010 $140,000 The Registrar Savings Advantage Year 1 Year 2 Heavy Renewal (A Discounts Conservative estimated savings + B) (C for + each D) registrar $14,788 $ 10,000 $17,891 Volume Rebates, and more ESTIMATED ANNUAL SAVINGS (Conservative) $29,888 A B 23

24 5. How We Help - About Us - The LogicBoxes Value Proposition - The Accreditation Game 24

25 About Us Part of the Directi Group Industry pioneers with over 8 years of experience 100% Accreditation success rate Accredited over 10% of all currently accredited registrars Quick Stats: LogicBoxes platform powers - Over 5.5 Million Domains Names Over 90 ICANN Accredited Registrars across 25 countries Market leaders (55% market share) 25

26 About Us Clients Include 26

27 Delay! = Miss 1 month Start You think of getting ICANN Accredited Research the process, the requirements, the costs, etc. Delay! We execute a Feasibility Report Is an ICANN Accreditatio n Feasible? Start working on your ICANN Accreditation Application We assist you in collating the documents in the required format Try and get the required documents You can t find an insurance provider for the specific insurance required You realize that your bank statement and company financial documents aren't as per ICANN requirements Delay And that comes to Prepare for all the technical changes needed for ICANN compliance 6 months of You Finally submit your application to ICANN Time Effort Money ICANN Responds and you're finally able to get the required documentation in place Delay! ICANN since you re unsure about how to answer some ICANN Accreditation application questions ICANN with a list of questions about the documentation, the insurance, etc. 27 Delay! ICANN raises a technical issue about your name servers, which you fix and report back After some more homework, you finally address ICANN s concerns When Instead you could have been focusing on your business! A Single Iteration with you & We prepare your ICANN Application Congratulations! You re now an Each Registry sends across it's own set of agreements and required documents list End You re Finally Live! You do a final check on your ICANN and Registry compliant system Your system finally passes all OT&E tests The Only steps where ICANN has some We set you up on our ICANN And we do this questions in about the You need to put in 2 months flat! business plan stated in Recognized & Approved your application So some that you effort save Registrar Platform and: Now Time let s are play the game with Pass all the OT&E Tests Effort Money z We do all the liaising with ICANN & the Registries Your technical team gets some technical doubts clarified from the Registries Delay! Your system passes 3 OT&E tests and fails 2 - re-schedule OT&E tests for the 2 Connects you with every gtlds through a Your technical team schedules an OT&E test for each gtld Registry single API integration Your tech team starts building the automation required to handle ICANN & Registry rules Your technical team starts learning each Registry's protocol and starts the integration process

28 6. Conclusion 28

29 Conclusion = Domain name Sales Hosting Sales + New Revenue Channels Transfer Fulfillment Domain Parking & Smart Parking + Increased Reach & Market Presence 29 + Brand Image Registry Grants International Markets Develops Reseller channel Control & Security Costs

30 Conclusion Partnering with a specialist Lowers Cost Shortens Time to market Avoids distraction from hosting business Do your due-diligence Doesn t help everyone Work out the numbers Make an informed decision Accreditation through = Easier Faster Cheaper 30

31 Thank You No-cost, no-obligations Financial Analysis for your company Visit: Write to us Sandeep Ramchandani Director, Strategic Partnerships LogicBoxes Website: Blog: 31

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