Now that ICANN has met again and we are getting closer to the 2026 application window for new Top-Level Domain Names, I thought I would share some rough figures on the cost of running a Registry with 100,000 Domains Under Management (DUM). The base ICANN cost to establish a TLD is about $232,000 (includes a $5k Rights Protection Mechanism Access Fee), and to maintain it at 100,000 domain-years is $51,500 per year, based on fees from the draft agreement and 2026-round materials. This includes:
- Initial ICANN setup cost: $232,000 (extras not included).
- Ongoing annual ICANN fees once the TLD is live
- Draft RA: annual registry fee ($25,750) plus $0.2575 per transaction. At 100,000 transactions, the annual ICANN cost is about $51,500.
This assumes one transaction per domain per year at 100,000 domains, reflecting the typical steady-state registry size for ICANN fees. The per-transaction fee generally applies if over 50,000 transactions per year, which a 100,000-DUM registry will typically exceed.
Two key caveats should be kept in mind when budgeting using these figures. The draft agreement allows ICANN to raise fees in line with inflation, so $51,500 is only a current estimate based on draft figures. Other possible costs not included: conditional evaluation fees, auction or contention costs, objections, RSTEP fees for technical evaluations, RPM fees for Sunrise/Claims periods, or the Variable Registry-Level Fee if registrars disapprove variable accreditation fees. These are situational and should only be included for comprehensive modeling.
In summary: ICANN-only planning number Setup: $232,000 Annual run rate at 100k DUM: $51,500/year
That is the simplest version.
You’ll still need to consider the following variable costs:
- Registrar and marketing needs – Registrars may require registry support for marketing and integration.
- Fraud monitoring – as the registry grows, maintaining security and handling abuse incurs costs.
- RSP and DNS fees – Estimate predictable technology management costs.
- Data escrow, legal, and policy – Plan for these necessary, if modest, expenses.
- Staff – Some registries run on minimal staff, but if you want to scale, you’ll likely need some help.
What Can a Registry Be Worth? Is it Worth it?
Below are the biggest examples. Very little data exists on what new gTLD registries have been sold for since 2012. But certainly, there is a market for them. A registry can be worth the risk if the TLD has real demand, strong renewals, and a solid distribution plan. These are some of the top industry players.
- Verisign (.com / .net): about $1.56B in annual revenue and roughly $26B market value
- Public Interest Registry (.org): about 11M domains and roughly $106M in annual revenue
- Proposed .org / PIR sale: $1.135B (not completed, but a strong valuation signal)
- Nominet (.uk): about 10.2M domains and £55.9M in revenue
- .ai (Anguilla): became a major economic asset, generating tens of millions in revenue
Examples for some of the 2012 players:
- Rightside sold to Donuts (2017): about $213M
- Neustar registry business sold to GoDaddy (2020): $218M
- MMX assets sold to GoDaddy (2021): about $120M
What makes a registry valuable:
- Recurring renewal revenue
- Pricing power
- Premium domain inventory
- Strong brand or category relevance
- Good registrar/channel distribution
- Low operating overhead once established
Bottom line:
A registry is not valuable just because it exists. It becomes valuable when it turns into a durable, recurring digital asset. A strong string can be worth millions or more. With a good team and a strong idea, a registry business can be very valuable.
Acronyms:
DUM – Domains Under Management
RPM – Rights Protection Mechanism
RSTEP – Registry Services Technical Evaluation Panel
RSP – Registry Service Provider
DNS – Domain Name System
RA – Registry Agreement
Sources:
Much of what I gleaned above comes from ICANN’s draft registry agreement. In many ways, this document is more important than the Applicant Guidebook.
- https://newgtldprogram.icann.org/sites/default/files/documents/agreement-draft-clean-28feb26-en.pdf
- https://newgtldprogram.icann.org/sites/default/files/documents/2026-round-applicant-journey-27jan26-en.pdf
Disclaimer: Nothing I state in this article or on my blog is meant to be investment or legal advice. Applicants must do their own due diligence and consult with an attorney or their own investment advisors.
