Demystifying ICANN Accreditationdownload.parallels.com/summit/apac2011/Day2_3_Sandeep... ·...

1

Demystifying ICANN Accreditation

Sandeep Ramchandani – Director, LogicBoxes

2 Profit from the Cloud™

1. Introduction


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


2. Why ICANN Accreditation?


The Profit Advantage

BUY AT BASE COST: Registrars buy directly from the Registries

TLD Average

Wholesale Cost

Registrar

Cost

.com 8.60 7.52

.net 8.06 5.58

.org 8.94 6.93

.info 8.94 6.93

.biz 8.99 7.03

.mobi 13.46 7.43

% Savings

12.2%

30.8%

22.5%

22.5%

21.8%

44.8%

Domain Registration / Renewal Active Expired

1-45 Days

RGP

30 Days

Deletion

5 Days



Domain Registration / Renewal Active

Expired

1-45 Days

RGP

30 Days

Deletion

5 Days

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

$70,000

$90,000

$110,000

$130,000

$150,000

Annual Costs of Operation

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

As

Volumes

grow,

Savings

keep

increasing

This gap will keep increasing

with time and domains growth


1-45 Days

RGP

30 Days

Deletion

5 Days



1. In 2010 alone, Registrars enjoyed these Registry Promos:

• A certain gTLD @ as low as $0.25!

• A premium gTLD @ $5.99

• $1 straight off + $5 off renewals for a popular gTLD

• All new registrations @ $1 for another gTLD

• Achieve targets and get new registrations at $0.25 a year

REGISTRY PROMOS


1-45 Days

RGP

30 Days

Deletion

5 Days



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

REGISTRY PROMOS


1-45 Days

RGP

30 Days

Deletion

5 Days



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.

REGISTRY PROMOS


1-45 Days

RGP

30 Days

Deletion

5 Days



• 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

DOMAIN PARKING


1-45 Days

RGP

30 Days

Deletion

5 Days



DOMAIN PARKING


1-45 Days

RGP

30 Days

Deletion

5 Days

Your LOGO


• 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


SMART PARKING


1-45 Days

RGP

30 Days

Deletion

5 Days


• 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


TRANSFER FULFILMENT


1-45 Days

RGP

30 Days

Deletion

5 Days


Additional Revenue Opportunities

Post Expiry Handling | Reseller vs. Registrar Comparison Chart

Domain

Expires

Renew

Delete

Grabbed by

Auction

House

Goes to

Customer

Domain

Expires

Renew

Park

Goes to

Customer

Smart Park Renew

Delete

Domain

moved to

winner

RESELLER REGISTRAR

Yes

No

No

No

Yes

Yes

Available

Pool Yes

No

Transfer

Fulfillment


Increased Marketability

Domain Names

are an entry point

Target

International

Markets

Build a Reseller

Channel

Differentiation


Increased Marketability

Consumer & Industry

Recognition

Every WHOIS request

promotes your brand

= Trust

Stability


Ultimate Control:

Freedom from

Registrar Policies

Ultimate Control & Security

Consolidate domains

under your own

Registrar

Access to all Registry

commands, emails

and notifications

Ultimate Security:

Registrar level

domain locking


Ultimate Control & Security

Treat VIP domains

deservingly

Own your

Customers (completely)


3. Becoming an ICANN Accredited Registrar


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


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


4. Financial Analysis Is ICANN Accreditation Really Feasible?

Let’s look closely at the numbers…


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 10,950 $7.52 $82,344 $94,696 $8.60 $94,170 $108,296

.net 1,575 $5.58 $8,789 $10,107 $8.06 $12,695 $14,599

.org 1,200 $6.93 $8,316 $9,563 $8.94 $10,728 $12,337

.info 900 $6.93 $6,237 $7,173 $8.94 $8,046 $9,253

.biz 375 $7.03 $2,636 $3,032 $8.99 $3,371 $3,877

Total 15,000 $108,322 $124,570 $129,010 $148,361

Fixed Recurring Costs Year 1 Year 2 Year 1 Year 2

ICANN Accreditation Fee $4,000 $4,000 $0 $0

ICANN Variable Fee $1,400 $1,400 $0 $0

Insurance Premium Approx. $500 $500 $0 $0

Total $5,900 $5,900 $0 $0

A

B

C

D

The Registrar Savings Advantage Year 1 Year 2

(A + B) – (C + D) $14,788 $17,891

Monetization Options Registrar Monetization Options Reseller Monetization Options

Yearly Yearly

Transfer Fulfilment $2,100 $0.00

Domain Parking Monetization $3,000 $0.00

Total $5,100 $0

The Registrar Profit Advantage $5,100

Registrar Cost Benefits $19,888

Registry Promos* As a Registrar

Promo by one of the largest gTLD Registry

Marketing grant $125,000

Promo by another leading gTLD Registry Target based marketing grant $15,000

Incentive by a major gTLD 50% discount on all registrations

upsold across another gTLD $8,500

And these were just 3 examples. Others opportunities include:

•Generous Marketing Grants

•Co-Marketing Activities

•Performance Based Discounts

•Heavy Renewal Discounts

•Volume Rebates, and more…

Funding we helped raise for a specific client in 2010 $140,000

Conservative estimated savings for each registrar $ 10,000

ESTIMATED ANNUAL SAVINGS

(Conservative)

$29,888


5. How We Help - About Us

- The LogicBoxes Value Proposition

- The Accreditation Game


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)


About Us

• Clients Include


Research the process, the

requirements, the costs, etc.

Email ICANN with a list

of questions about the

documentation, the

insurance, etc.

ICANN Responds and

you're finally able to

get the required

documentation in

place

Start

You think of getting

ICANN Accredited

Congratulations!

You’re now an

Email ICANN since

you’re unsure about

how to answer some

ICANN Accreditation

application questions

Is an

ICANN

Accreditatio

n Feasible?

You realize that your

bank statement and

company financial

documents aren't as per

ICANN requirements

You can’t find an

insurance provider

for the specific

insurance required

Your tech team starts

building the automation

required to handle ICANN

& Registry rules

You Finally submit

your application to

ICANN

After some more

homework, you finally

address ICANN’s

concerns

ICANN has some

questions about the

business plan stated in

your application

ICANN raises a

technical issue about

your name servers,

which you fix and

report back

Each Registry sends

across it's own set of

agreements and

required documents

list

Your technical team

starts learning each

Registry's protocol and

starts the integration

process

You do a final check on

your ICANN and

Registry compliant

system

Your technical team

gets some technical

doubts clarified from

the Registries

Your technical team

schedules an OT&E test

for each gTLD Registry

Your system passes 3

OT&E tests and fails

2 - re-schedule OT&E

tests for the 2

Your system finally

passes all OT&E tests

End

You’re Finally Live!

Prepare for all the

technical changes

needed for ICANN

compliance

Try and get the

required

documents

Start working on your

ICANN Accreditation

Application

Delay

!

Delay

!

Delay

!

Delay

! Delay

!

Delay! = Miss 1

month

And that comes to… 6 months of Time Effort Money When Instead you could have been focusing on your business!

Now let’s play the game with z

We execute a 3600

Feasibility Report

We assist you in

collating the

documents in the

required format

A Single Iteration

with you & We

prepare your ICANN

Application

We do all the

liaising with

ICANN & the

Registries

We set you up on our ICANN

Recognized & Approved

Registrar Platform and:

Pass all the OT&E Tests

Connects you with every

gTLDs through a

single API integration

The Only steps where

You need to put in

some effort

are

And we do this in 2 months flat!

So that you save

Time

Effort

Money


6. Conclusion


Conclusion

Hosting

Sales = Costs

Domain Parking & Smart Parking

New Revenue Channels

+

+

Brand

Image

Domain

name

Sales

Control

&

Security

Transfer Fulfillment

Increased Reach & Market Presence +

Registry Grants International Markets Develops Reseller channel


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

=


Thank You

Sandeep Ramchandani Director, Strategic Partnerships

LogicBoxes

Website: http://www.logicboxes.com

Blog: http://blog.logicboxes.com

Twitter: @logicboxes

No-cost, no-obligations Financial Analysis for your company

Visit: http://www.accreditation.com/analyze/

Write to us [email protected]

http://www.logicboxes.com/

http://blog.logicboxes.com/

http://www.accreditation.com/analyze/

mailto:[email protected]


Date post:	02-Aug-2020
Category:	Documents
Upload:	others
View:	1 times
Download:	0 times