How To Become a Domain Registrar and Make Money

Introduction.

Have you ever thought about running a domain registration business? Or maybe you’ve wondered how people make money by selling domain names.

The idea of owning and operating a domain registrar might sound complicated at first, but the reality is that it’s a pretty straightforward business to start—if you know what you’re doing.

If you’ve got the drive and are willing to learn, becoming a domain registrar could be a smart way to earn money online.

In this article, I’m going to walk you through the basics of becoming a domain registrar, how you can make money, and what steps you need to take to get started.

No need to worry about techy jargon; I’ll keep everything simple, easy to follow, and practical so you can understand the process without feeling overwhelmed.

What Exactly Is a Domain Registrar?

Let’s start with the basics. A domain registrar is a company that manages the registration of domain names. For example, when someone wants to start a website, they need to register a domain name (like www.yourwebsite.com).

A domain registrar is the company they go to for that. These registrars are accredited by the Internet Corporation for Assigned Names and Numbers (ICANN), the organization that oversees domain name systems globally.

As a registrar, you’ll essentially be the go-between for people who want to buy domain names and the organizations that manage the domain names themselves.

You’ll sell them domains, manage renewals, and provide additional services like web hosting and email accounts.

Why Become a Domain Registrar?

There are several reasons why starting a domain registrar business can be an excellent move. Here are a few:

High Demand: Every day, new websites are being created, and with that comes a constant demand for domain names. As of 2023, there are over 370 million registered domain names globally, and that number keeps growing (Source: Statista). The market for domains is huge and still expanding.
Potential for Passive Income: Once you’ve set up your domain registration business, there’s a lot of potential for passive income through renewals and upselling additional services like web hosting, email, and security.
Low Startup Costs: Compared to many other businesses, starting a domain registrar doesn’t require massive upfront costs. Most of the investment will go into setting up a website and possibly investing in reseller programs for domains.
Control Over Your Business: Owning a registrar means you have full control over the services you provide, your pricing models, and how you market your business. You can even offer customized services that can attract specific types of customers, whether they are bloggers, small businesses, or large enterprises.

How Does a Domain Registrar Make Money?

Let’s get into the fun part—how you’ll actually make money. There are a few different revenue streams for domain registrars:

Domain Sales: The most straightforward way a domain registrar makes money is by selling domain names. You’ll typically mark up the price of domain names, meaning you buy them from a wholesaler or directly from a registry, and then sell them at a higher price to customers. The difference is your profit.
Renewals: Domains need to be renewed every year, and this provides an ongoing revenue stream. Many customers forget to renew their domains, and this is where you can swoop in and make additional income by sending reminders and offering automatic renewal options.
Add-Ons: As a domain registrar, you can also offer extra services like hosting, SSL certificates, website building tools, and email services. These add-ons are highly profitable because they’re usually sold on a subscription basis.
Premium Domains: Premium domains are highly sought-after names that are short, memorable, or keyword-rich. You can buy these at regular prices and then resell them at a higher price to customers who need them for branding or business purposes.
Affiliate Marketing: Some domain registrars also make money by promoting third-party services, like web hosting or security tools, and earning affiliate commissions for each referral.

How Do I Become a Domain Registrar?

Now, let’s talk about how you can get started. Here’s a simple step-by-step guide to becoming a domain registrar:

Get Accredited by ICANN: To legally sell domains, you need to be accredited by ICANN (Internet Corporation for Assigned Names and Numbers). This step is essential if you plan on operating as a standalone domain registrar. Getting accredited can take time and requires you to meet certain technical and financial criteria. The process might be a bit lengthy, but it’s the key to running a legit domain registrar business.
Alternatively, you can become a domain reseller first. Resellers partner with accredited registrars to sell domains under their own brand name without going through the full ICANN accreditation process.
Choose a Domain Reseller Program (If You’re Not Getting Accredited Right Away): If you don’t want to go through the lengthy process of becoming an accredited registrar right away, you can start by partnering with an established registrar through a reseller program. Some popular options include companies like ResellerClub, Namecheap, and GoDaddy. These programs let you sell domains and related services under your brand without needing ICANN accreditation.
Set Up a Website: You’ll need a website to sell domain names. This is where potential customers will go to search for and purchase domains. Make sure your website is user-friendly and has an easy-to-navigate domain search feature. You can either build a site from scratch or use a website builder that integrates with your reseller program.
Offer Add-On Services: As mentioned earlier, domain registration is just the beginning. You’ll want to offer other services like hosting, email, and website security. These can be a great source of recurring income and will help you stand out from other registrars who only offer domains.
Market Your Business: Marketing is key to bringing in customers. You can use search engine optimization (SEO), paid ads, social media, and email marketing to get the word out about your services. Offering discounts and promotions can also help you attract customers, especially in the beginning.
Stay Updated: The domain business is ever-changing, so make sure you’re always up-to-date on the latest trends, pricing changes, and tools. This will ensure you stay competitive in the market.

Common Challenges of Running a Domain Registrar Business

Like any business, running a domain registrar has its challenges. Here are a few to watch out for:

Competition: There are lots of domain registrars out there, and the market can be quite competitive. You’ll need to offer something unique—whether that’s great customer support, lower prices, or extra features—to stand out.
Customer Support: Dealing with customers who need help with domain issues can be time-consuming. Having a solid support system in place (whether it’s via chat, email, or phone) is essential.
Managing Renewals: Ensuring your customers keep renewing their domains can be a challenge. You’ll need to remind them before their domain expires and offer incentives to keep them loyal.

FAQs

1. How much does it cost to become a domain registrar?

The cost can vary. If you want to get ICANN accredited, it can cost thousands of dollars, including a $4,000 annual fee for ICANN accreditation. If you’re starting as a reseller, you can get started with as little as a few hundred dollars, depending on the program you choose.

2. Do I need to know a lot about technology?

Not necessarily. While it helps to understand the basics of how the internet and domains work, many reseller programs handle the technical stuff for you. You just need to focus on marketing and customer service.

3. Can I make money from domain registration without getting ICANN accredited?

Yes! You can start as a domain reseller, which allows you to sell domains without full ICANN accreditation. However, if you want to eventually run your own registrar, you’ll need to get accredited.

Conclusion

Starting a domain registrar business can be a lucrative and flexible way to earn money online. The demand for domain names is constant, and with a little effort and the right approach, you can tap into this market.

Whether you start as a reseller or go all-in with ICANN accreditation, the potential for making money is there.

So, are you ready to dive into the world of domain registration and start your own business? What’s the first step you’ll take today?