Domain Name Cost Breakdown

NOTE: The prices in this article are no longer up to date. Many of the central registries have raised prices since this article was written in 2006.

Domain name prices have plummeted in recent years. When domain names first became available to the public back in 1995, they cost $70 for a two-year registration. Since then the average price paid for a domain name has steadily declined. These days paying more than $10 a year is considered expensive.

In the last year or so, some hosting companies have started selling domain names for $3-$5 dollars a year. They lose money on each domain name, but make up the difference with customers that later buy hosting from them. Domain names become a 'loss leader' for them.

There is always catch when you buy a domain name (or anything) for below cost. Some of the common situations are:

• You can only buy a very limited number of domains at the below cost price. After that you pay regular price.
• You have to pay very high renewal fees.
• You have to buy hosting to get the low price.
• The below cost price is for a limited time only, after which the prices will increase.
• Only the first few hundred customers get the low price.
• Often the domain control panel is inferior, because most of these companies do not specialize in domain names.

Remember, you get what you pay for, and there is no such thing as a free lunch, no matter what their marketing department tells you. Always read the fine print.

Here at Dynadot, we believe in charging a low price for an excellent service. At $7.99 a domain (same price for renewals), we offer one of the lowest prices in the industry. Furthermore, we specialize in domain names, and have top notch customer service and control panels as well. We believe in running an open and honest business - no catches, gotchas or gimmicks. What you see is what you get.

We charge you $7.99 for a dot com domain registration. Our costs are as follows:

As you can see, we make less than $1 profit for each domain name we register. With over 450 accredited registrars, the competition is fierce. We survive by cutting costs to the bone, and registering lots of domains for lots of people. It's a great deal for our customers.