What Is a TLD Registry? Why Registries Matter to Registrars — and How the Relationship Actually Works

If you run (or are building) a domain registrar, you can go years “selling domains” without ever internalizing the most important operational truth in the business: you do not buy domain names from ICANN, and you do not “create” domains in your own system. You broker registrations in other people’s namespaces, under contracts, policies, and billing rules set upstream by registry operators.

Once you understand what a TLD registry actually does—and how registries and registrars really work together—everything gets clearer: pricing, margins, promo campaigns, abuse workflows, escrow obligations, launch phases, and why some TLDs are operationally effortless while others are surprisingly demanding.

A TLD registry, in plain terms

A TLD registry operator is the organization responsible for operating a top-level domain such as .com, .org, .net, or a new gTLD like .app. In ICANN’s own framing, registry operators maintain the master database for all domain names registered under a particular gTLD. 

That “master database” point is not marketing language—it is the core technical and legal reality. The registry is the authoritative source of record for registrations under that TLD, including:

The registry also publishes (or causes to be published) the TLD’s zone file that ultimately drives global DNS resolution, and it operates critical DNS infrastructure for the TLD. This is why “registry operations” is not just a software product; it is an uptime, security, and continuity discipline.

If you are a registrar, your system talks to registry systems (typically via EPP) to create, renew, transfer, update, and delete registrations. A registry-registrar agreement often spells this out explicitly—for example, Verisign’s Registry-Registrar Agreement describes the “System” it operates for registrations and the supported provisioning protocol. 

“Do registries own the TLD?” The accurate way to think about it

People casually say registries “own” a TLD. Operationally, registries behave like the owner because they run the platform and set commercial terms for registrars. But in the ICANN gTLD world, it is more precise to say a registry operator is delegated and contracted to run the TLD, typically under a Registry Agreement framework and ICANN’s contracted-party model. 

This distinction matters because it explains why:

> A registrar’s job is to navigate this reality efficiently.

> The registry can run its own backend—or outsource to an RSP

A registry operator may run its own registry backend (the shared registration system, EPP, DNS publication pipeline, data escrow integrations, reporting, compliance tooling), or it may outsource some or most of those functions to a Registry Services Provider (RSP).

ICANN has long recognized and documented that registries can outsource elements of registry functions to third parties—but the registry operator remains accountable for meeting its contractual obligations. 

This is where the industry sometimes confuses newcomers: some companies are both:

Identity Digital and CentralNic are good examples of this dual role.

CentralNic Registry explicitly positions itself as a registry services provider that develops and licenses its own registry software and operates platforms for a range of domain extensions. 

CentralNic Registry

Identity Digital similarly describes itself as managing its own TLDs as well as those operated by its registry service customers, and it offers “Registry Backend Services” as part of its partner services. 

So yes—CentralNic and Identity Digital are registries, and yes—they sell registry backend capabilities as a SaaS-like service to other TLD operators. Both can be true at the same time.

The registry–registrar relationship is three relationships layered together

To understand how the ecosystem really functions, separate the relationship into three layers.

First, the registry has a contract framework that governs its right and obligations to operate the TLD within ICANN’s contracted party system (for gTLDs). ICANN’s contracted-party pages and registry agreement references reflect this “registry operator” model. 

Second, the registrar has its own contract with ICANN: the Registrar Accreditation Agreement (RAA). ICANN’s registrar resources describe registrars as the entities ICANN accredited to act as registrars in one or more gTLDs—again, this is not the same thing as “selling domains on the internet.” It is a regulated contracted-party role. Learn here more about how to become an ICANN accredited domain registrar.

Third—and this is the day-to-day operational layer—the registrar signs a Registry–Registrar Agreement (RRA) (or equivalent) with each registry (or with a channel platform that provides access) to actually provision names in that TLD. Verisign’s .NET Registry-Registrar Agreement is a canonical example of this structure and makes clear that it is the registry system the registrar connects to for registrations. 

Registrars that ignore any one of these layers typically end up surprised later: by billing mechanics, compliance duties, launch restrictions, data requirements, or promotional settlement terms.

The financial relationship: why the “domains cost only 20 cents” myth won’t die—and why it’s wrong

There are two different types of “domain fees” that people conflate.

One category is ICANN’s per-transaction fees that apply within the gTLD program. ICANN publishes fee schedules showing a per-domain-year transaction fee for registrars and other fee components; for example, the registrar fee schedule references a transaction fee of US$0.18 per domain-year along with a fixed component. 

That number is real, but it is not the wholesale cost of a domain name.

The other (and much larger) category is the registry’s wholesale fee—the amount the registry charges the registrar for the registration, renewal, transfer, and related services. This is set by the registry (subject to its agreement constraints, where applicable), and it varies widely by TLD. For .com, ICANN’s published notice materials have referenced a $10.26 wholesale price effective September 1, 2024. 

That single example is enough to kill the “20 cents” myth. Domains do not cost $0.20 wholesale. ICANN does not sell you domains. ICANN collects fees under the gTLD program; the registry sets the wholesale, and the registrar sets the retail.

How registries actually bill registrars: wallets, deposits, and credit limits

Most serious registries do not operate on vibes and goodwill. They operate on credit policies.

In Verisign’s .NET Registry-Registrar Agreement, registrars are required to provide payment security—either an irrevocable letter of credit or a cash deposit. The agreement states that the amount establishes the registrar’s credit limit in the Verisign system, that billing is monthly in arrears, and that Verisign can draw upon the payment security to satisfy outstanding balances—suspending registrations if the security is depleted and not replenished. 

Operationally, registrars often describe this as “funding the registry wallet” or “maintaining deposit with the registry.” The terminology varies, but the control mechanism is consistent: registries must manage financial risk at massive scale.

Promotions and “discounts”: often the registry is funding the discount, not the registrar

When you see a $0.99 first-year promo on a TLD, many customers assume the registrar is eating the cost as a marketing expense. Sometimes that happens—but in a large number of campaigns, the registry funds the economics upstream, either by:

Identity Digital explicitly offers “Go To Market + Rebate Programs” as part of its partner services, which is the plain-English version of “we will collaborate commercially to drive registrations.” 

GoDaddy Registry similarly notes that registrars can participate in co-marketing programs and joint PR opportunities. 

Even Verisign’s historical .NET application materials referenced offering marketing programs to registrars on an equivalent basis, reinforcing that registry-funded marketing is a long-standing channel practice, not a new invention. 

So the correct mental model is: registrars are often the storefront, but registries frequently provide the promotional fuel.

The marketing relationship: why registries care about your sales channel

Registries do not succeed merely by being technically competent. They succeed when registrars actually sell their namespace—and when end users build on it in a way that sustains renewal value.

That is why registry–registrar marketing relationships can become surprisingly deep, including:

Co-branding appears because it serves both sides. Registrars want conversion and margin. Registries want adoption and renewal stability. The programs exist because, at scale, neither side can win alone.

This is also where the best registry teams stand out. The strongest registry partner managers understand registrar funnels, pricing psychology, and the operational constraints of a registrar platform. The strongest registrar teams understand registry lifecycles, launch phases, and how to operationalize a campaign without breaking support and billing.

Five major registry operators every registrar should understand

There is no single perfect “top 5” list because “top” can mean different things (domains under management, portfolio breadth, geographic reach, or relevance to your registrar’s target market). But the following five are objectively important touchpoints for registrars because of their scale, their portfolios, and their influence on how the registrar channel operates.

Verisign

Verisign is the incumbent-scale operator most registrars cannot ignore. Verisign positions itself as operating the authoritative registry for .com and .net (and others), which is why its operational practices often become “default assumptions” for many registrar teams. 

From a registrar-operations perspective, Verisign is also a clean example of how registry billing, security requirements, and ICANN fee pass-through mechanics are written into the registry-registrar contract model. 

Public Interest Registry

Public Interest Registry (PIR) is the nonprofit operator created to manage .org, and it positions .org as a mission-oriented namespace with a specific community identity. 

From the registrar side, PIR is a useful reminder that registry operators can be nonprofit or for-profit—but they still operate as contracted parties with fee structures, policies, and enforcement mechanisms, and they can carry significant reputational expectations tied to their TLD’s brand.

CentralNic Registry

CentralNic Registry describes itself as a premier provider of registry services that develops and licenses its own software and operates platforms for domain extensions. 

For registrars, CentralNic matters not only as a registry operator in its own right, but also because it reflects the broader reality of backend outsourcing: many TLDs you sell may be “run by” one entity on paper while being powered operationally by a specialist platform provider.

Identity Digital

Identity Digital positions itself as having one of the largest domain extension portfolios and explicitly acknowledges that it manages its own TLDs and those of registry service customers. 

Commercially, it also signals what modern registry–registrar relationships look like by advertising partner services that include go-to-market and rebate programs as well as backend services. 

GoDaddy Registry

GoDaddy Registry positions itself as a provider of registry services powering more than 200 TLDs, including ccTLDs, generics, brands, and cities. 

From a registrar’s viewpoint, GoDaddy Registry is notable for explicitly describing channel enablement—tools, templates, and the option to participate in co-marketing and joint PR—because it reflects how much “registry success” depends on registrar execution. 

Other registry operators worth knowing: Amazon, Google, and iNaming

Not all registries are “registry-first” companies. Some are large technology firms operating TLDs as part of a broader infrastructure and brand strategy.

Amazon operates as an ICANN-contracted registry operator through Amazon Registry Services, and ICANN’s contracted-party listings include Amazon Registry Services, Inc. across multiple TLD entries. 

Google operates Google Registry and openly presents it as Google’s domain registry; it also announces TLD launches (such as .app) through Google’s own channels, which is a reminder that for some operators, TLDs are a platform strategy, not just a naming product line. 

And outside the usual Western narrative, operators like iNaming (Internet Naming Co., Ltd.) appear within ICANN/IANA-style listings as contracted-party entities for certain TLDs, reflecting how global and regionally diverse registry operations really are. 

Why this matters if you are a registrar (or becoming one)

Registries are not “suppliers you pay in the background.” They are the upstream operators whose contracts, systems, and commercial programs shape your retail reality.

If you get the registry relationship right, you can:

If you get it wrong, you end up with the common registrar pain: confusing cost models, failed promo math, underfunded registry accounts, launch-day outages, policy violations, and a support team drowning in tickets that are actually upstream lifecycle mechanics.

The best part—and this is something most people only realize after they start working closely with registries—is that the registry side of the industry is full of exceptionally capable people: protocol veterans, DNS reliability engineers, policy experts, product marketers who actually understand channel sales, and partner managers who can help a registrar grow faster when the relationship is run professionally.

That is the real takeaway. A registrar scales not just by adding more TLDs to a search box, but by building disciplined, repeatable registry partnerships—and treating registry operations as a core competency, not a vendor checkbox.

If you want DotUpTech.com to be your registrar-operations edge, this is a strong place to start: build your internal playbook around registry contracting, registry billing mechanics, and the commercial reality of registry-funded promotions. The registries are not distant infrastructure. They are your closest upstream business partners—and your growth curve depends on how well you work with them.