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08|08|2007 09:19 am EDT

Tucows introduces cost+ pricing model

by Frank Michlick in Categories: Registrars

Tucows LogoIn an email to their resellers, Tucows announced a change in their pricing model yesterday. As of August 4th, the billing is now based on a cost + maintenance fee model. That means that Tucows resellers will now be charged the registry fee, the ICANN fee and a “Tucows Maintenance Fee” of $3.00 separately.

So here are the current reseller charges at Tucows:

TLD registry cost ICANN Fee Tucows Fee Total
COM $6.00 $0.20 $3.00 $9.20
NET $4.25 $0.20 $3.00 $7.45
ORG $6.00 $0.20 $3.00 $9.20
INFO $5.75 $0.20 $3.00 $8.95
BIZ $5.30 $0.20 $3.00 $8.50

Considering that other registrars such as GoDaddy have also been charging the ICANN fee separately, I would expect other registrar to switch to a similar model over time.

Tucows stock took a plunge yesterday after the quarterly earnings call, which also announced a stronger focus on the aftermarket for the company.

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6 Comments

Michele Neylon

August 8, 2007 @ 6:12 pm EDT

Frank

eNom has been listing the ICANN fee separately for quite some time.

Michele

Frank Michlick

August 8, 2007 @ 8:27 pm EDT

Michele,

As I said in my article above “other registrars such as GoDaddy have also been charging the ICANN fee separately”. However this is the next step that introduces a transparent registry pricing as well. Probably the easiest way to deal with the accounting needed to run a registrar.

Of course the ICANN fee is not charged in realtime at the time of the registration, as far as I know but rather invoiced at a later time. So this gives the registrar some time to “play” with the advance payment.

/Frank

Michele Neylon

August 8, 2007 @ 8:29 pm EDT

Frank

Apologies – I misread you.

Michele

Victor

August 9, 2007 @ 12:55 pm EDT

Does this mean that a registrar have to pay 9.20 for every domain they sell? what does tucows $3.00 fee represent?

Regards

Frank Michlick

August 9, 2007 @ 1:11 pm EDT

Victor, the cost for the Tucows’ resellers is $9.20. What exactly Tucows charges the $3.00 fee you have to ask them.

The cost for the registrar is $6.00 + $0.20 ICANN fee. And then there are some more fees for them, like the “variable ICANN fee”.

Also keep in mind that most of the registry fees will increase in October.

/Frank

Victor

August 9, 2007 @ 1:15 pm EDT

Thank you!

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