Chart 1: Percentage of new domain generations in August 2000 by registrar.

Since the domain name fee is paid every year, cumulative domain registration statistics will be used in the calculation.

The total number of domain names registered as of 22 January 2001 was 35,158,339. Therefore, excluding growth in the domain name registrations, the worldwide annual revenue of the domain registration market is $1,230,541,865 US. The total number of ".com" domains registered was 21,243,588, which translates into $743,525,580 US per year. Taking into consideration the percentage of domain registrars providing domain generation services, the annual revenue directly related to domain generators is 0.025*$743,525,580 US = $18,588,139.5 US.

However, another theory suggests that domain generation services do not substantially relate to the already registered portion of the domain registration revenues, since domain name owners pay the fee in order to retain their already registered sites. These services used to attract customers to register new domain names and therefore, the market size should be estimated taking into account only revenues from new registrations. This theory is supported by the growing number of affiliate domain registrars, providing sophisticated domain generation services and redirecting customers to accredited registrars for a one-time commission. The number of gTLDs registered in 1999 had surpassed 6.6 million, by July 2000 it reached 19 million and by January 22 passed the 21.2 million mark. The unofficial number of new registrations in the year 2000 was estimated to be 13,320,466, which translates into $466,216,310 US. Taking into consideration the percentage of domain registrars providing domain generation services, the annual revenue directly related to domain generators is 0.025*$466,216,310 = $11,655,407.7 US.

 Taking into consideration the incredible growth in domain registrations (see chart 2 for growth analysis), the above figures should be continuously revised on a monthly basis.

Chart 2: Growth analysis of domain name registrations over 1999-2000 period.