Fees estimated to cover actual costs of new TLD process.
Want to offer .anything? Prepare to write a hefty check.
Internet Corporation For Assigned Names and Numbers (ICANN) estimates that total application fees for entities wishing to offer new top level domain names, such as .nyc or .money, will be about $185,000. Despite the high price tag, ICANN expects 500 applications in the first round.
The application fee is expected to cover the historical costs of implementing the program in addition to future costs of the application process.
ICANN estimates it has spent nearly $13 million to date on new gTLD planning. With 500 applications expected, about $26,000 of the total application fee will be used to cover those expenses. Because these expenses have already been paid for, the money will be added to ICANN’s reserve.
$100,000 of the application fee will cover the direct costs of managing and evaluating applications. The remaining $60,000 will essentially cover “unknowns” and is based on risk modeling by an insurance firm.
But the financial costs don’t stop at the application fee. Setting up a registry is expensive, and annual fees to ICANN are expected to be at least $75,000. I suspect that many applicants will partner with existing registries to leverage their expertise with running a registry.