ICANN corporation has published its approved operating budget for 2016. One of the corporation’s sources of income are new gTLDs transaction fees. For their preliminary estimation ICANN has decided what renewal rate to expect. This level was estimated at 50%.
This number was used in the draft of operating budget published in March. Clearly it is very low considering that a usual renewal rate in generic top-level domains is 70%. Moreover, the announced 50% for new gTLDs is ICANN’s highest and the most optimistic estimation. The low estimate is at 35%. ICANN expects that the renewal rate in the new domains that gave names away for free will be only 25%.
