Starting a Registrar.

[David]

If had the money to apply and start an ICANN accredited registrar, how hard would it be to make it successful? What do you think it takes? Any input?

 

[GeorgeK]

I think right now, it's very difficult to make money as a pure registrar -- you'd need to bundle it with other services like GoDaddy is doing, such as webhosting, etc. The market is fairly saturated, in my opinion.

 

[David]

I want to start a business, online. Any other routes you may recommend. I was thinking that if I could acquire the capital needed, I would have it a webhosting, etc.

 

[ehdonhon]

Better to start an internet service that people like and then start offering registrations to your customers than the other way around.

If you start out as just another registrar that offers some services, then the only way you are going to get customers is by lowballing the competition. Very dangerous unless you've got a lot of capitol.

On the other hand, if you start gaining customer by selling (or giving away) some popular internet service, then you will have a user base that is more likely to register with you because they know you.

 

[nyspqr]

You can become a reseller with Godaddy. Only $99 for the year and they give you a webiste. Try going to http://www.wildwestdomains.com

 

[David]

You can become a reseller with Godaddy. Only $99 for the year and they give you a webiste. Try going to http://www.wildwestdomains.com

I wanted to be ICANN accredited.

 

[Leading Names]

I wanted to be ICANN accredited.

You will need plenty of cash, upwards of 100k.

- Rob

 

[David]

You will need plenty of cash, upwards of 100k.

- Rob

Well aware of that.. My question is, is it worth it?

 

[Restecpa]

Well aware of that.. My question is, is it worth it?

I doubt it, with all the large companies such as Enom and Godaddy already doing a good job and being well established.

 

[David]

I doubt it, with all the large companies such as Enom and Godaddy already doing a good job and being well established.

Well, say I have about 700k invested in this. I spend about 200-300k on ad's such as TV spots...?? Think that would help.

 

[Restecpa]

Money always helps, but I don't think you could get that money back and end up with a positive ROI anytime soon, by just selling domains on such a competitive market. If I had $0.7mio to invest, domain registration business would definitely not be it. There are other, less risky, less time consuming, less stressfull and more profitable ways to turn that money. Whichever way you decide to go, make sure you research it good before you invest. Heh, why am I even saying this Anybody with this kind of money to invest must be well familliar with business and all of it's traps. Good luck!

 

[eSology]

Well, say I have about 700k invested in this. I spend about 200-300k on ad's such as TV spots...?? Think that would help.

Some things still don't work despite how much cash you throw at it.

Here is one thing I remember from my marketing classes back in the day. First to market is "golden". Add to that a household name and you almost cinched the audience. Now think about it. eNom, GoDaddy, Dotster, Register.com, NetworkSolutions, etc. These are the names and faces you will compete with at the level you are mentioning (accredited & TV ads). You will need a smart team to break into the market share.

 

[Dave Zan]

If you're really willing to risk it, you could lessen it by focusing on a niche or
so. Many registrars have recognized this and are focusing on what they feel is
something they're really darn good at.

Trouble is, have you found that niche?

Someone here suggested starting out as a reseller, and I think that's a good
option. One such registrar, moniker, started out as a reseller (though I don't
remember who for), before striking it out on its own and eventually earning its
own place among domain insiders here and around.

Whatever you're considering, good luck. And it's your money, after all.

 

[thekingz]

The best idea for you is to start small and grow big! Go become a reseller of another company find one you like then once you have websites built and you offering other services like web hosting, email accounts etc.. If you get your site to do well that can help you go to next step! As then eventurly if your doing good you can pay and get ICann accepted and then branch away from the other company!


--"Always Start Small And Grow Big, Bad idea to Go Big And Chance Getting Small"--

 

[BLazeD]

Do not get into web hosting - my 2 cents

 

[Jack Gordon]

I understand your dilemma. You've got time and money to invest, and are looking for the right business opportunity to spend your resources developing.

Starting out as a reseller and duking it out with thousands of other resellers offering the same exact product at the same exact prices is a nonstarter. It is thinking too small.

Looking at the competitive marketplace, I think you ought to listen to what people are telling you - the chips are stacked against you. Why take on the big names unless you've really got an angle that could separate you from the crowd? It doesn't sound like you have that.

Instead, I would look for existing business opportunities that have ~$25-$35k revenue now and potential to grow, either online or offline.

Best of luck!

 

[David]

Wow, a lot of advice here.. Thanks...

Instead, I would look for existing business opportunities that have ~$25-$35k revenue now and potential to grow, either online or offline.

Like?

 

[Jack Gordon]

Wow, a lot of advice here.. Thanks...

Like?

Open up the classifieds this Sunday and look for business opportunities. Or Google business opportunities and see what kinds of listings come up in your area. Call an area business broker and ask what's available in your price range. Most major real estate companies have a business broker in house. Put out the word to friends and family that you are looking for a new business and ask them to put out feelers for you (that's how I got mine!)

For online businesses, look around and you should find some comparable resources to those. I've never tried it so I'm not sure where to send you, but I have no doubt they are out there and findable. If nothing else there may be a registrar or hosting company available with that kind of revenue, ripe for a takeover bid. That's a much better way to go than starting from scratch.

My best advice, and I hope you don't need to hear this from me, is that before you spend that kind of money you better do your homework and hire a good attorney to lead the due diligence process - no matter what kind of business you get into.

 

[David]

Hrmm yea, I'm looking to really break big into online business though, me and my family do have a few business outside of the internet and we do have a few attorney's. And of course, you never spend any sort of money on anything without doing your homework, I spend hours pouring of information and such just registering a $7 domain.

You know what I was also thinking about, starting an Affiliate program such as Kanoodle, AdSense or AzoogleAds. Anyone know anything about that?

 

[Nexus]

dberube,

I think you would need to have a novel approach to make any headway in the registrar business, OR have a captive audience whose trust and business you already have (more than traffic, but actual business dealings).

IMO, currently, there is so much competition founded on "low price", that it wouldn't make a significant impact to be an "also ran" on that virtue alone (even though "price" is a huge draw). The registrar market looks even more "cut throat" than the PC industry. Companies like DirectNic made excellent headway by gaining customers when $15 registration was a "bargain". Now, GoDaddy has ridden its low price point, critical mass, upselling, and economy of scale to being #1. They have used the "reseller" platform they run under WildWest Domains, and a different model of "discounting" (subscription) via BlueRazor to continue their march towards the height of success.

Good websites for research:
http://www.registrarstats.com/
http://www.webhosting.info/
http://www.icann.org/tlds/monthly-reports/

A number of registrars have tried to outright advertise "free domains" hoping to attract enough people that sign-up for for extended services. I'm sure the information on the sites above will testify as to whether the tactic proved successful.

An "affiliate" program would essentially be the same as a "reseller" program without as much teeth. One of the biggest draws for a registrar looking to capture reoccuring business, is to partner with hosting companies as their preferred service. Here is a registrar shootout from ISP Planet that analyzes a group of registrars and how attractive or unattractive their model appears to this group:
http://www.isp-planet.com/services/registrars/

Definitely something well worth reading even for general knowledge. If nothing else, it gives in some cases a candid view into the business considerations and program representations of some of the registrars interviewed.

Best of luck. Again, I think your best book is to sit down and brainstorm for a "novel approach" to the business. I think that will only be possible by finding an audience for domain names, a highly effective way of providing the product to them, and a good delivery mechanism. The more innovative the better. I'm a big believer in dark horses. Often the current players may miss an amazing angle that creates an opportunity. Without that however, I think the challenges of the business would grind against the financial incentive.

I think Fabulous has done a great job entering the market and providing very unique and appealing mechanisms for domain names owners with top-notch service. Moniker's nitch seems to be in paying close attention to security. eNom and Tucow have focused very highly on empowering their reseller infrastructure with highly flexible API driven systems companies can integrate transparently into their services.

~ Nexus