The past ICANN80 meeting captured the attention of many in the domain world, particularly those interested in applying for new Top-Level Domains (TLDs). The good news is that the dates remain on target, with the application window set to open in April 2026. However, a significant and ongoing topic of discussion has been the application fees.
At the recent meeting in Kigali, ICANN presented new scenarios on application volumes and associated fees. The presentation included new surprising options which raised eyebrows across the industry, but it’s essential to understand the context.
As we dive deeper into the details of these fees, we’ll discuss the timing and the rationale behind the cost structure. This information is vital for businesses planning to budget and prepare for their applications effectively.
In the recent ICANN80 meeting held in Kigali, ICANN introduced new projections for application fees that have sparked extensive discussion. One of the attention-grabbing figures was a projected fee of $293,000 per application based on the unlikely scenario of receiving only 500 applications. This drew significant skepticism given its high cost.
However, a more probable scenario suggests that with a conservative estimate of 1,500 applications, the fee would drop to around $220,000 per application. This estimate seems more aligned with industry expectations and reflects a balanced approach to covering the operational costs associated with the new gTLD program.
ICANN also provided two other scenarios using a volume of 1,000, resulting in a projected fee of $242,000 and 2,000 with a fee of $208,000.
ICANN’s new gTLD program is to be revenue-neutral. This means the fees will cover all costs associated with the processing and evaluating of new TLD applications without requiring subsidies from other ICANN funding sources. This approach is designed to keep the program self-sustaining and transparent.
Exact details of the final application fees are expected by September. This timeline allows applicants to incorporate the fees into their budgeting plans. Knowing the exact costs upfront is crucial for businesses planning to allocate resources for their applications. Applicants may find the prolonged timing for fee finalization perplexing, but it should help to ensure that all expenses are meticulously accounted for.
Refund policies are another important aspect of the fee structure. If the application revenues exceed the projected volume of the fees, the applicants will receive a refund for the surplus amounts. So, if ICANN uses a fee of $220,000 associated with a volume of 1,500 applications and has 2,000 applications, each application should receive a refund of $12,000. This provides a form of financial safeguard for those paying the hefty application costs. To help avoid lengthy delays, ICANN must clearly outline key refund milestones before the application window opens in April 2026. Ideally, the refund process will take place soon after Reveal Day—the day when all applied-for TLDs are publicly disclosed.
Understanding the projected fees and their timelines is essential for applicants. This will help businesses plan appropriately, ensuring they meet all financial obligations and are well-prepared for the upcoming application window.
Many people wonder why the fees for ICANN applications have increased since the 2012 round, which was set at $185,000. Over the years, ICANN has made various changes to improve and streamline the application process. These improvements come with additional costs, which ICANN cites as a reason for the higher fees. One key factor is inflation, which affects the overall expenditure for managing and evaluating TLD applications.
Additionally, ICANN has introduced new systems and processes, including Brand Exemptions like Specification 13, which adds complexity and cost to the evaluation. These new features aim to provide a more robust and comprehensive framework for applicants, but they also contribute to increased operational costs.
Another aspect that could affect fees is the fluctuating number of applications. ICANN has no data on the potential number of applications and wants to minimize its risk. Of course, lower application volumes would mean each application has to cover a larger share of the total costs. As a result, ICANN needs to set the fees to ensure that the program remains self-sustainable, recovering all operational costs without subsidization from other funding sources.
Besides the core application fees, there are additional costs that applicants need to consider. For instance, ICANN has not yet determined the fees related to Community Priority Evaluation and Geographic Name reviews. These reviews add another layer of expense for applicants who meet specific criteria.
Brand exemptions and joint venture reviews also represent extra costs. If you’re applying as part of a joint venture, you will need to account for these fees in your budget. Besides these potential costs, ICANN is discussing an “occupancy fee” for lingering applicants who do not delegate their TLDs promptly. This fee aims to encourage timely delegation, adding an expense for those who delay.
We believe the $220,000 figure is a conservative and reasonable fee structure for ICANN to aim for. From an applicant’s perspective, it would be prudent to budget around $250,000 to cover any incremental items that may come up later. Remember, this budget only focuses on the application fees and does not include launch and operational costs.
As we prepare for ICANN80 and the opening of the application window in April 2026, understanding the details of application fees and associated costs becomes crucial for successful planning. From breaking down the fees and their timelines to understanding the reasons behind increased costs and additional fees, applicants need to be well-prepared financially.
The insights provided here should help guide your planning and budgeting for your brand’s TLD application. Knowing these details will enable you to make informed decisions whether you’re applying for a brand-specific TLD or a generic one.
Need help navigating the ICANN application process? At TLDz, we specialize in guiding businesses through the complexities of obtaining their brand top-level domains. Contact us today to maximize the potential of your online presence.
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