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ICANN’s Fee Structure Promotes Monopolization
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Thankfully for us, a small Registrar that does NOT participate in the deleted names market, ICANN "forgives" two-thirds of the Per-Registar Variable fee. It is obvious that ICANN saw a large segment of the industry making substantial margins in the repurchase of deleted domain names and decided that they needed to get their piece of the pie.
I am astounded by the growth in ICANN fees over the years. In the past 12 months, ICANN's "taxes" on Registrars have gone up 300%. They are adding huge "taxes" on new sTLD contracts and trying to negotiate additional per-domain fees at the Registry level into the new .NET contract. It is clear that Registries are going to pass these fees on the the Registrars who, to survive, are going to have to find additional sources of revenue and/or raise fees to consumers. Even GoDaddy is already passing the 25 cent transaction fee on to the consumer as a separate line item above their advertised purchase price.
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