If I own my domain, how come I have to pay a yearly renewal fee? Why isn't the domain name mine forever?

Another great question from a DNforum.com member. No one in the world really "owns" a domain name except the Network Information Centre (NIC), or domain name registry. Most of the NICs in the world receive an annual fee from a legal user in order for the legal user to utilize the domain name (i.e. a sort of a leasing agreement exists, subject to the registry's terms and conditions). Depending on the various naming convention of the registries, legal users become commonly known as "registrants" or as "domain holders". Most people consider this "owning a domain name", but this is actually false.

ICANN holds a complete list of domain registries in the world. One can find the legal user of a domain name by looking in the WHOIS database held by most domain registries.

For most of the more than 240 country code top-level domains (ccTLDs), the domain registries hold the authoritative WHOIS (Registrant, name servers, expiry dates etc). For instance, DENIC, Germany NIC holds the authoritative WHOIS to a .DE domain name.

However, some domain registries, such as for .COM, .ORG, .INFO, etc., use a registry-registrar model. There are hundreds of Domain Name Registrars that actually perform the domain name registration with the end-user (see lists at ICANN or VeriSign). By using this method of distribution, the registry only has to manage the relationship with the registrar, and the registrar maintains the relationship with the end-users, or 'registrants'. For .COM, .NET domain names, the domain registries, VeriSign holds a basic WHOIS (registrar and name servers etc). One can find the detailed WHOIS (Registrant, name servers, expiry dates etc) at the registrars.

Since about 2001, most gTLD registries (.ORG, .BIZ, .INFO) have adopted a so-called "thick" registry approach, i.e. keeping the authoritative WHOIS with the various registries instead of the registrars.


Some of this information has been taken from: Wikipedia.org