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D EMYSTIFYING ICANN A CCREDITATION A presentation by Sandeep Ramchandani – LogicBoxes Tim Cole – ICANN 20 th January, 2011.

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Presentation on theme: "D EMYSTIFYING ICANN A CCREDITATION A presentation by Sandeep Ramchandani – LogicBoxes Tim Cole – ICANN 20 th January, 2011."— Presentation transcript:

1 D EMYSTIFYING ICANN A CCREDITATION A presentation by Sandeep Ramchandani – LogicBoxes Tim Cole – ICANN 20 th January, 2011

2 A GENDA 1. Introduction 2. W HY consider an ICANN Accreditation? 3. W HAT does it take to get Accredited? 4. Financial Analysis 5. H OW we can help 6. Conclusion 2


4 B RIEF O VERVIEW 1 A 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 webinar, lets try and attempt to Demystify ICANN Accreditation, with the help of arguably two of the most respectable and eminent people in this field… 4

5 S PEAKERS P ROFILES 2 B Tim Cole – Chief Registrar Liaison, ICANN Tim has been deeply involved in promoting Registrars He oversees the new and renewal accreditation processes for Registrars Tim also provides oversight for the ICANN approved dispute resolution service providers 5 Sandeep Ramchandani – Director, Strategic Partnerships, LogicBoxes Sandeep has been a founding member of LogicBoxes Over 150 successful ICANN Accreditations over 6 years He is also an active participant in the GNSO Registrar constituency, where he represents the interests of 80+ Registrar clients


7 7 T HE C OST A DVANTAGE 2 A B UY AT B ASE C OST : Registrars buy directly from the Registries TLD Average Wholesale Cost Registrar 8.60 8.06 8.94 8.94 8.99 7.03.mobi13.467.43 % Savings 12.2% 30.8% 22.5% 21.8% 44.8% Domain Registration / Renewal Active Expired 1 – 45 Days RGP 30 Days Deletion 5 Days

8 T HE C OST A DVANTAGE 2 A Potential Savings as a Registrar 10,000 Domains Annual Savings $7,892 Monthly Savings $658 8 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 Year 1Year 2Year 3Year 4Year 5 $72,215$83,047$95,504$109,829$126,304 $86,007$98,907$113,744$130,805$150,426

9 T HE C OST A DVANTAGE 2 A In 2010 alone, Registrars enjoyed: – 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 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 Registrars marketing budget 9 Domain Registration / Renewal Active Expired 1 – 45 Days RGP 30 Days Deletion 5 Days R EGISTRY P ROMOS

10 T HE C OST A DVANTAGE 2 A Advent of newgtlds has forced incumbents to push hard gTld Registry sales promos must be made available to all ICANN Accredited Registrars regardless of size or domicile. 10 Domain Registration / Renewal Active Expired 1 – 45 Days RGP 30 Days Deletion 5 Days R EGISTRY P ROMOS

11 A DDITIONAL R EVENUE O PPORTUNITIES 2 B 11 Domain Registration / Renewal Active Expired 1 – 45 Days RGP 30 Days Deletion 5 Days D OMAIN P ARKING For so many Registrars today, Parking > Profit from Revenues Domains 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 Your LOGO

12 A DDITIONAL R EVENUE O PPORTUNITIES 2 B You currently delete all domains your customers dont 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 Domain Registration / Renewal Active Expired 1 – 45 Days RGP 30 Days Deletion 5 Days S MART P ARKING

13 A DDITIONAL R EVENUE O PPORTUNITIES 2 B 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 Domain Registration / Renewal Active Expired 1 – 45 Days RGP 30 Days Deletion 5 Days T RANSFER F ULFILLMENT

14 A DDITIONAL R EVENUE O PPORTUNITIES 2 B 14 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 R ESELLER R EGISTRAR Yes No Yes P OST E XPIRY HANDLING | R ESELLER VS R EGISTRAR C OMPARISON C HART Available Pool Yes No Transfer Fulfillment

15 I NCREASED M ARKETABILITY 2 C 15 Domain Names are an entry point Target International Markets Build a Reseller Channel Differentiation

16 I NCREASED M ARKETABILITY 2 C Consumer & Industry Recognition 16 Every WHOIS request promotes your brand = Trust Stability

17 U LTIMATE C ONTROL & S ECURITY 2 E 17 Consolidate domains under your own Registrar Access to all Registry commands, emails and notifications Ultimate Security: Registrar level domain locking Ultimate Control: Freedom from Registrar Policies

18 U LTIMATE C ONTROL & S ECURITY 2 E 18 Treat VIP domains deservingly Own your Customers (completely)

19 19 27Apr08 3. Becoming an ICANN Accredited Registrar Tim Cole Chief Registrar Liaison 20 January 2011

20 Q UALIFICATION 3 A Business RequirementsFinancial Capabilities Commercial General Liability 20

21 G OVERNING A GREEMENTS AND P OLICIES 3 B Registrar Accreditation Agreement (RAA) Registry-Registrar Agreement (RRA) Registrar-Registrant Agreement Reseller Agreement (if applicable) Consensus Policies Data Escrow Agreement More details: 21

22 F EES ( CURRENT AS OF 10 J AN. 2011)3 C Application fee (1 time USD 2,500) Yearly accreditation fee (USD 4,000) Quarterly variable fee (approximately USD 1,100 per quarter). Possibility of 2/3 reduction for smaller registrars (see budget) Transaction fee (USD 0.18 per one year increments for new registrations, transfers or renewals) Fees paid to the Registries 22

23 D OCUMENTS TO DELIVER 3 D Application form duly completed and signed; ( accreditation-application.htm). accreditation-application.htm Applicants Certificate of Incorporation, Company Articles or equivalent document. Document evidencing the liquid capital availability (prior to the completion of the accreditation process). Copy of the insurance policy (if already in force) or document from an insurer stating the applicants insurability. 23

24 A PPLICATION P ROCESS 3 E 1 1 The applicant submits the completed application and pays the application fee. 2 2 ICANN reviews the application for approval – Follow-up conducted with the applicant for further information or to clarify application answers. 3 3 Once the application is approved, ICANN sends the RAA along with an invoice for the first year accreditation fee to the applicant. 4 4 Applicant must then return the signed RAA and the payment of the first year fee and satisfy any outstanding requirements. 5 5 ICANN signs the contract and announces the new registrars accreditation to the registries. 24

25 M ISCELLANEOUS A DVANTAGES 3 F Participate in industry policy formation Make a direct impact on rules and regulations that directly affect your business Network with and learn from the exclusive set of elite Registrar businesses from around the world 25


27 F INANCIAL A NALYSIS 4 27 Domain Volumes 15,000 Annual Growth % 15% ParticularsCosts as your own Registrar using LogicBoxesCosts as a Reseller Per Domain Costs Year 1Year 2 Year 1Year 2 TLDNo. of Domains Per Domain Cost Total CostTotal Cost + GrowthPer Domain CostTotal Cost.com10,950 $7.52 $82,344$94,696$8.60$94,170$108,296.net1,575 $5.58 $8,789$10,107$8.06$12,695$14,599.org1,200 $6.93 $8,316$9,563$8.94$10,728$12,337.info900 $6.93 $6,237$7,173$8.94$8,046$9,253.biz375 $7.03 $2,636$3,032$8.99$3,371$3,877 Total15,000 $108,322$124,570 $129,010$148,361 Fixed Recurring Costs Year 1Year 2 Year 1Year 2 ICANN Accreditation Fee $4,000 $0 ICANN Variable Fee $1,400 $0 Insurance Premium Approx. $500 $0 Total $5,900 $0 A B C D The Registrar Savings AdvantageYear 1Year 2 (A + B) – (C + D)$14,788$17,891 Monetization OptionsRegistrar Monetization OptionsReseller Monetization Options 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 RegistryTarget 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


29 A BOUT U S 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 Million Domains Names Over 90 ICANN Accredited Registrars across 25 countries Market leaders (55% market share) Clients include: 29

30 30 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! Youre now an Email ICANN since youre unsure about how to answer some ICANN Accreditation application questions Is an ICANN Accreditation Feasible? You realize that your bank statement and company financial documents aren't as per ICANN requirements You cant 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 ICANNs 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 Youre 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! = Miss 1 month And that comes to… 6 months of Time Effort Money When Instead you could have been focusing on your business! Now lets play the game with z We execute a 360 0 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

31 31 6. C ONCLUSION

32 C ONCLUSION 6 32 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

33 C ONCLUSION 6 33 Accreditation through Easier Faster Cheaper = Partnering with a specialist Lowers Cost Shortens Time to market Avoids distraction from hosting business Do your due-diligence Doesnt help everyone Work out the numbers Make an informed decision

34 T HANK Y OU 34 Get in touch: Sandeep Ramchandani Director, Strategic Partnerships Free Cost-Benefit Analysis + Free Accreditation Services (fees rebated) Visit: Write to us Gold Sponsors February 2011 Platinum Sponsors March 2011 Meet us:

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