DEMYSTIFYING ICANN ACCREDITATION

A presentation by

Sandeep Ramchandani – LogicBoxesTim Cole – ICANN20th January, 2011

AGENDA

1. Introduction

2. WHY consider an ICANN Accreditation?

3. WHAT does it take to get Accredited?

4. Financial Analysis

5. HOW we can help

6. Conclusion

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1. INTRODUCTIONA. BRIEF OVERVIEWB. SPEAKERS’ PROFILES

BRIEF OVERVIEW 1A

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, let’s try and attempt to Demystify ICANN Accreditation, with the help of arguably two of the most

respectable and eminent people in this field…

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SPEAKERS’ PROFILES2B

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

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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

2. WHY ICANN ACCREDITATION?A. THE COST ADVANTAGEB. ADDITIONAL REVENUE OPPORTUNITIESC. INCREASED MARKETABILITYD. BRANDING ADVANTAGEE. ULTIMATE CONTROL AND SECURITY

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THE COST ADVANTAGE2A

BUY AT BASE COST: Registrars buy directly from the Registries

TLD AverageWholesale 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%

THE COST ADVANTAGE2A

Potential Savings as a Registrar

10,000Domains

Annual Savings $7,892

Monthly Savings $658

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20,000Domains$21,684

$1,807

30,000Domains$35,476

$2,956

As Volumes grow,Savings keep increasing

This gap will keep increasingwith time and domains growth

Year 1 Year 2 Year 3 Year 4 Year 5$72,215 $83,047 $95,504 $109,829 $126,304

$86,007 $98,907 $113,744 $130,805 $150,426

THE COST ADVANTAGE2A

• 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 Registrar’s

marketing budget

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REGISTRY PROMOS

THE COST ADVANTAGE2A

• 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.

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REGISTRY PROMOS

ADDITIONAL REVENUE OPPORTUNITIES 2B

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DOMAIN PARKING

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

ADDITIONAL REVENUE OPPORTUNITIES 2B

• 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

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SMART PARKING

ADDITIONAL REVENUE OPPORTUNITIES 2B

• 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

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TRANSFER FULFILLMENT

ADDITIONAL REVENUE OPPORTUNITIES 2B

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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

POST EXPIRY HANDLING | RESELLER VS REGISTRAR COMPARISON CHART

Available Pool

Yes

No

Transfer Fulfillment

INCREASED MARKETABILITY2C

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Domain Names are an entry

point

Target International Markets

Build a ResellerChannel

Differentiation

INCREASED MARKETABILITY2C

Consumer & Industry Recognition

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Every WHOIS request promotes your brand

= TrustStability

ULTIMATE CONTROL & SECURITY2E

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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

ULTIMATE CONTROL & SECURITY2E

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Treat VIP domains deservingly

Own your Customers (completely)

1927Apr08

3. Becoming an ICANN Accredited Registrar

Tim ColeChief Registrar Liaison

20 January 2011

QUALIFICATION3A

http://www.icann.org/en/registrars/policy_statement.html#IIA

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GOVERNING AGREEMENTS AND POLICIES3BRegistrar Accreditation Agreement (RAA)Registry-Registrar Agreement (RRA)Registrar-Registrant AgreementReseller Agreement (if applicable)Consensus PoliciesData Escrow Agreement

More details:http://www.icann.org/en/registrars/governing-policies.htm

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FEES (CURRENT AS OF 10 JAN. 2011)3C

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

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DOCUMENTS TO DELIVER3D

Application form duly completed and signed;(http://www.icann.org/en/registrars/

accreditation-application.htm).

Applicant’s 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 applicant’s insurability.

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APPLICATION PROCESS3E

11• The applicant submits the completed application and pays the

application fee.

22• ICANN reviews the application for approval – Follow-up conducted with

the applicant for further information or to clarify application answers.

33• Once the application is approved, ICANN sends the RAA along with an

invoice for the first year accreditation fee to the applicant.

44• Applicant must then return the signed RAA and the payment of the first

year fee and satisfy any outstanding requirements.

55• ICANN signs the contract and announces the new registrar’s

accreditation to the registries.

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MISCELLANEOUS ADVANTAGES3F

• 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

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4. FINANCIAL ANALYSISIS ICANN ACCREDITATION REALLY FEASIBLE? LET’S LOOK CLOSELY AT THE NUMBERS…

FINANCIAL ANALYSIS4

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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 $0.00Total $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

ESTIMATEDANNUAL SAVINGS

(Conservative)

$29,888

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5. HOW WE HELP- ABOUT US- 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 Million Domains Names• Over 90 ICANN Accredited Registrars across 25 countries• Market leaders (55% market share)

• Clients include:

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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

StartYou 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 anICANN

Accreditation 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

requiredYour 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

EndYou’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

TimeEffortMoney

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

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

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6. CONCLUSION

CONCLUSION6

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Hosting Sales=

Costs

Domain Parking & Smart Parking

New Revenue Channels+

+Brand Image

DomainnameSales

Control &

Security

Transfer Fulfillment

Increased Reach & Market Presence+

Registry Grants International Markets Develops Reseller channel

CONCLUSION6

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Accreditation through EasierFasterCheaper

=

• 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

THANK YOU

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Get in touch:

Sandeep RamchandaniDirector, Strategic Partnerships sandeep.r@logicboxes.com

twitter.com/logicboxes blog.logicboxes.com

Free Cost-Benefit Analysis + Free Accreditation Services (fees rebated)

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

Write to us consult@logicboxes.com

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