Registrar
A registrar represents a company which has direct relationships with domain name registries being authorized to sell domain names to new r. In order to become a registrar one has to be accredited via an ICANN process to register top-level domains (TLDs).[1]
Short overview
In order to sell domain names to registrants, it is first required to become a registrar. It is also referred to as "Domain Name Registrar" and describes an organization which has gained ICANN accreditation and is able to manage domain names based on the guidelines of domain names.
Why become a registrar?
There are plenty of reasons to become a registrar. First of all, the main objective is to make profit by trading with domain names. Secondly, it is a great way to take advantage of the evolution of domain names and developing a successful business.
This what the registering process of a domain name supposes: the domain names are registered at the domain name registries. Within the registries, technical information is being stored to ease the communication process between the registrant-registrar-registry.
Moreover, the registrars are encouraged to stay in touch with the domain name registries regarding guidelines or any other problems that may occur. Besides selling domain names, the registrars also provide registration services. In this way, the registrar which is being designated for a specific domain names becomes a designated registrar.[2]
Whenever the owner of a domain names needs any changes related to it, the owner should contact the registrar. Changes to the domain name refer to: name server, advanced DNS records, domain name information, contact address, etc. The important thing to remember is that only the designated registrar can modify the domain name in the database of registries.
How to become a registrar
The first step in becoming a registrar involves getting ICANN accreditation. In this way, the registrar will manage the registering process of domain names, but will also deal with business and technical requirements.
ICANN and Registrar
In order to become a registrar one should get accreditation from ICANN. Then, all registrars must pay a $40 fee along with a variable fee. There is rather tough competition among registrars so that the end-users have plenty of choices available with advantageous related services. [3]
In addition, ICANN has also defined the "Policy on Transfer of Registrations between Registrars" which applied in the case domain name transfer. The process of domain name transfer refers to the actions required when changing the designated registrar of a specific domain name. [4]