Today we will discuss the factors that influence the prices of domain names.
If you have ever been tasked with registering a domain name, you may have noticed that prices range from a couple of dollars to a couple of thousand dollars. It is known that prices have reached several tens of millions of dollars. There are many examples in history, one of them being VacationRentals.com, which was sold for $35 million. As explained by HomeAway founder Brian Sharples, the company decided to purchase this domain in 2007 to prevent competitors like Expedia from acquiring it.
Given this, it can be confidently said that the answer to the question “How much does a domain name cost?” is not very simple and clear.
The price of domains depends on several factors, including domain zones and choice of registrar, so it’s important to carefully consider each of them before purchasing a new domain.
Let’s explore these factors, as well as some other useful things to consider when buying a new domain, and by the end of the article, you will have a clearer idea of what exactly determines the cost of a domain name.
What determines the cost of domain names?
As we mentioned, there are several factors that influence this:
If you come up with a domain name that has not yet been registered, you will most likely have to pay $10-15 for it (depending on the domain zone you choose), as new domains are always cheaper than existing ones. When choosing a domain, also make sure it is logically justified. It should contain an indication of the theme of the site. You can place a keyword related to your activity in the domain name. This will help customers and visitors to remember the site name more quickly. Thus, with a little creativity, you can easily get a great domain that will cost you cheap. However, if you have your eyes on a domain that is already registered to someone else, be prepared to negotiate and ultimately pay “good” money for it, as not everyone is willing to easily give up their domain.
RX-NAME.NET will help you easily check whether a domain name is available and how much different versions of it may cost you. Remember that checking the availability of a domain is a good reference point regardless of whether you want to buy or sell it.
Naturally, the price of your future domain will also depend on the domain registrar you choose. If you are a novice in purchasing domains, make an effort to choose the right registrar, otherwise it may lead to the loss of your domain. You should also remember that to maintain your rights to your domain, you need to renew its registration annually. That’s why it’s important to choose a reliable and transparent domain provider in terms of their prices.
Here’s what to look for when choosing a registrar:
Low prices – after all, you don’t want to spend all your earnings or savings on purchasing your first domain. Look for registrars offering competitive prices (RX-NAME is one of them) and buy your domain there.
However, you must be careful and make sure that it is provided for free. We’ll talk about that later.
- Domain Zone
This is definitely what affects the price of your domain. In short, the more “popular” the domain zone, the more you’ll pay for the domain.
Zones like .COM, .CO, .IO, and even .NET will always cost much more than less popular ones like .XYZ, .INFO, and others. The reason for this is that internet users are not very familiar with the latter and do not trust them as much as they do with the .COM domain.
Of course, you decide whether it’s worth caring more about trust or saving money. If you need trust, then one of the top-level domain zones is what you need. If it’s not that important to you, then you can choose a cheaper zone when registering.
Although keywords in a domain name may not directly affect your search engine optimization efforts, they will certainly help you create an SEO-optimized website and brand. That’s why domains containing common keywords with a high search volume are often much more expensive than those without them.
The more people know the keyword in your name, the more they will search for it, and the more popular your domain name/brand will be. However, when it comes to choosing between a domain with a common keyword or a completely unique name, we suggest you choose the latter, as unique names are much easier to brand and are also slightly cheaper.
These are some of the main factors that can impact the final price of your domain name. When purchasing a new domain, it’s easy to get lost in the process and forget about additional expenses and hidden fees, but it’s definitely something you should pay attention to.
So, what are some hidden costs that you should consider?
Remember, we mentioned that the domain registrar you choose should offer free WHOIS protection? The reason is that many providers actually charge a fee for privacy protection on an annual basis, which increases the expenses for you and can even double the price of domain registration.
Therefore, before purchasing a domain, be sure to check whether the registrar offers privacy protection for free or for an additional fee. This is something you really need so that people cannot find you and steal your domain name, and it’s always nicer to get something for free, right?
When you decide to buy a domain name, make sure that the renewal fee is not different from or higher than the initial price. Many registrars use discounts to trick you into buying a domain for a year, and then forget to mention that the renewal fee is three times higher than the initial price.
It’s important that you know about the renewal price from the beginning (if there is one) and decide whether it suits you or not. As we mentioned earlier, you can also choose the auto-renewal option and not worry about it when it’s time to “renew” your domain.
At some point, you may decide that you want to change registrars, and when (and if) you do, don’t forget to check whether there are any significant fees for transfer. Most registrars won’t mention this, but when the time comes, they will charge you a significant fee for transferring your domain.
Always read the fine print regardless of which market or registrar you choose, as this will save you from a lot of trouble in the long run.
Business Email Domains
When purchasing a domain name, you may notice that some registrars offer add-ons in the form of an email domain, which will help you set up a professional business account for your new domain.
In many cases, this is just a simple way to get more money from you, so it’s important to remember that you don’t actually need to get an email domain, especially since some hosting companies offer this for free.
Yes, it’s important to choose a great domain name that you like, but it’s also important to understand that you shouldn’t rush into it unprepared and spend all your hard-earned money in one go. But that doesn’t mean you should choose the cheapest available domain name either. You need to study all the options and do your research before making a decision.
As you have seen, there are many factors that influence the price of a domain name, and if you want to buy it at a reasonable price, you should follow these guidelines:
Choose a new domain name, not an existing one,
Choose a (reliable) registrar that offers competitive prices,
Get a less popular extension than .COM,
Choose a unique domain name, not a keyword-based one,
Check the fine print on privacy protection, transfer fees, and annual renewals.
We hope this article has helped you better understand the factors that determine the prices of domain names, and if you decide to purchase a domain, you will be fully prepared for any surprises or obstacles you may encounter. And, as always, RX-NAME will help you not only find the perfect domain for your business but also register it hassle-free and in the shortest possible time.