Automattic Becomes a Domain Registrar

Matt Mullenweg, founder of Automattic and one of the creators of WordPress, announced that his company had become a fully accredited registrar.

It can now register domains on its own without another company being involved.

This move gives Automattic a competitive advantage over companies such as SquareSpace and MovableType’s TypePad service.

What it Means to Be a Registrar

The Internet Corporation for Assigned Names and Numbers (ICANN) is the non-profit group that coordinates the domain systems and authorises domain registrars.

It has only approved approximately 1535 registrars, of which only about 1400 are both still active and accredited.

The accreditation process for new registrars is brutal. It costs $2,500 just to apply and $4,000 in annual fees. Plus, there are documents, liability insurance and transparency requirements to deal with. Only dedicated businesses even attempt it.

What Are the Benefits For Automattic?

Speculating, we can assume Automattic are aiming for the following pros:

• Profit. Accredited registrars pay only the minimal ICANN domain fee, eighteen cents per domain per year. Yes, that’s just 18 cents.
• Security. With the information only passing through one company, the registration process is viewed as being marginally more secure.

Of course, there are higher overheads, so registrars need to go for massive volumes to break even.

What Does it Mean For Customers?

The cost of a domain probably won’t change. But obtaining a domain through Automattic’s websites (such as its WordPress blog hosting service) could be easier.

The move represents more of a behind-the-scene change at Automattic than something customers need to concern themselves with, but it’s interesting to note the new direction Automattic is about to take.