Several years ago the Internet Corporation for Assigned Names and Numbers (ICANN) added a fee to domain registrations in order for their organization to balance the books. The fee was 25 cents and was to be added to every single domain purchase. Some companies swallowed the cost and other, like Go Daddy, added the fee seperate from the cost of the domain name, which made for some misleading prices.
In a recent email to Dreamhost, ICANN told them that registrar fees were changing this year, from 25 cents per domain plus $3.8MM shared among all registrars (based on their size), DOWN to just 22 cents per domain and $.8MM shared!
At first I was really happy about this because I assumed that registration fees would go down slightly but as I think of it, I would rather fees go up! If registration fees were $100 per year, we would never see ridiulous domain names and websites would have some more thought. The extra money could go to an organization that could develop new technologies for the internet or go for something to do with hosting or name servers.
On the other hand, what does ICANN really need money for? We are paying them a fee to “administer assigned names and numbers”. How hard can that be when everything is already layed out? Over the past few years there biggest accomplishments were approving terrible TLDs like .mobi, .info, .museum, .biz, .coop, .aero, .name, and .pro. As Dreamhost said it:
I don’t mean to be blunt, but the only purpose to ANY new gTLD these days is the transfer of wealth from trademark holders to domain squatters, registry operators, and ICANN. After all, the ONLY people who get domains in all these TLDs are large companies who just absolutely need to own every TLD for every brand they oversee!
He also pointed out:
- Even though the number of domains has only risen about 30% in the last year, ICANN’s total budget is rising from $23MM to $34MM, almost 50%!
- Their payroll for 2000-2001 was $1.2MM for 15 people, an average of $80,000 a person. In 2005-2006 it was $7.3MM for 59 people, an average of $124,000 a person! And for 2006-2007 it is $12.4MM for 89 people, an average of over $140,000 a year each! Which is why I’m quitting my day job and going to become an intern at ICANN!
- Their budget for board meetings and travel went from $3.8MM in 2005-2006 up to $5.9MM for 2006-2007! That’s $500,000 a month! Now, it does look like they have a lot of meetings… but maybe they could combine just a few of those and just have say, one a quarter? Also, instead of having all their meetings in crazy international locales (San Juan, Lisbon, São Paulo, Marrakech, Amsterdam, in the car, their parent’s basement, frat houses), they could save money by just getting tickets for the same flight on Space Ship One. That’d also save them money on getting high!