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Main Profiteer in Domain Sales

Started by KayammaNony, Feb 06, 2024, 12:23 AM

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KayammaNonyTopic starter

I have pondered the question of who reaps the largest benefits from domain sales. It's intriguing to consider whether registrars claim the majority of the proceeds when a domain is registered in the .info or .com zone, with a significant portion going to ICANN.

Moreover, my curiosity extends to the registration of .FR domains and whether they also fall under the purview of ICANN. Could it be that my assumptions are misplaced, and there are other entities at play in this domain ecosystem? Who truly profits from the lucrative business of domain sales and registrations?
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chpolaxvm

When a domain is registered in the .info or .com zone, the benefits are distributed among various entities. Registrars do indeed receive a portion of the proceeds from domain sales, as they facilitate the registration process and often set the pricing for domain names. However, it's important to note that the bulk of the revenue generated from domain registrations does not typically go to registrars alone.

ICANN, the Internet Corporation for Assigned Names and Numbers, plays a crucial role in overseeing the domain name system. They collect fees from registrars for each domain registered, which contributes to their operational costs and the maintenance of the global domain infrastructure. Therefore, a significant portion of the proceeds from domain sales does indeed flow to ICANN.

Moving on to the registration of .FR domains, it's essential to clarify that these fall under the purview of AFNIC, the registry for .FR domains. AFNIC functions as the official registry for .FR domain names and is responsible for managing the domain database, ensuring the stability and security of the .FR namespace. While AFNIC may receive a share of the revenue from .FR domain registrations, it is not directly affiliated with ICANN.

There are other stakeholders who benefit from domain sales. Domain investors, also known as domainers, participate in the buying and selling of domain names for profit, adding another layer of complexity to the domain ecosystem. Furthermore, web hosting providers, online marketing companies, and other internet service providers also stand to gain from the increased demand for domain names, as businesses and individuals require hosting services and digital marketing solutions for their online presence.
The business of domain sales and registrations involves a diverse array of entities, each with its own vested interests and opportunities for profit. While registrars, ICANN, and domain registries play central roles, the broader domain ecosystem encompasses a multitude of players, all contributing to the intricate dynamics of the domain industry.
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lamnzxzfd

ICANN receives approximately 25 cents for each .com domain registration, and the cost of applying for a first-level domain involves paying thousands of dollars to ICANN. The owner of the first-level domain earns money through negotiations with resellers, who in turn receive a percentage of the sales.
Additional payments and details can be found on the ICANN website, iana.org. Moreover, technical support for both the zone owner and registrars also generates revenue.
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ubsviarzobilla

only membership fees are directed to ICANN and IANA from the government. Here is a list of the sponsors of the zone: https://www.iana.org/domains/root/db/fr.html
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