Domain Name Wire is reporting that the new generic top-level domain names announced by ICANN this summer, allowing registrants to choose their own domain name suffix such as .nyc, will cost registrants approximately $185,000. ICANN has spent almost $13 million for this new project, and Domain Name Wire reports that a large portion of that $185,000 estimate ($26,000 in fees) will go towards recouping those costs. $100,000 of the application fee will cover the application process, and the remaining $60,000 has been added in through risk calculations by an insurance firm.
Despite these high costs, ICANN is expecting 500 applicants in the first round. It remains to be seen whether the return on investment for these new gTLDs will be worth the cost and what effect these new domains will have on the Uniform Domain Name Dispute Resolution Policy and trademark infringement on the web.