ICANN's Revenue Model
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ICANN's revenue model is primarily based on a fee structure that supports its operations and activities. Here are the key components of ICANN's revenue model:
- Domain Name Registry Fees: ICANN charges a fee to registries, which are entities responsible for operating and managing top-level domains (TLDs) such as .com, .org, .net, and country-code TLDs like .uk or .de. These fees are typically based on a percentage of the registry's transaction revenue or a fixed fee per domain registration.
- Domain Name Registrar Accreditation Fees: ICANN accredits domain name registrars, which are companies that offer domain registration services to the public. Registrars pay an initial accreditation fee and annual fees to ICANN based on the number of domain names they manage.
- IP Address Allocation Fees: ICANN oversees the allocation and management of IP addresses through its regional Internet registries (RIRs). RIRs charge fees to organizations requesting IP address allocations or assignments, and ICANN receives a portion of these fees to support its activities.
- New Generic Top-Level Domains (gTLDs): ICANN introduced the new gTLD program, allowing the creation of customized domain extensions beyond traditional ones like .com or .org. ICANN charges application fees from organizations seeking to operate new gTLD registries. Additionally, ICANN receives ongoing fees from the operation of these gTLD registries.
- Auction Proceeds: In cases where multiple organizations apply for the same new gTLD, ICANN may conduct an auction to determine the winning applicant. The proceeds from these auctions contribute to ICANN's revenue.
- Support from ccTLD Registries: Country-code top-level domain (ccTLD) registries, such as .uk or .de, operate under agreements with ICANN. These agreements may include financial contributions from the ccTLD registries to support ICANN's mission and activities.
- Other Contributions: ICANN also receives voluntary contributions from various stakeholders, including domain name registries, registrars, Internet service providers (ISPs), and other organizations that recognize the importance of ICANN's work.
Finance Committee of the Board (BFC)[edit | edit source]
The ICANN Board's Finance Committee is responsible for:
- consulting with the President on ICANN's annual budget process;
- reviewing and making recommendations on the annual budget submitted by the President; and
- developing and recommending long range financial objectives for ICANN.[1]
References[edit | edit source]
- ↑ https://www.icann.org/en/board/committees/finance-bfc ICANN: Finance Committee of the Board (BFC)]
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