Thursday, February 10, 2011

How Much Should You Pay for a Domain?

The price of a domain name is determined by two variables: the base price set by the agencies that control the various domain name extensions (.com, .in, .org, .us, .tv, and so on) and the markup charged by domain name
registrars.




On top of that, different registrars might offer radically different prices for the same domain extension by creating special offers; for instance, if you transfer over from another registrar or host your website through the registrar.


You can also get an existing domain name by agreeing to pay the current registrant to transfer the registration to you. Many registrars offer domain name brokering services to facilitate these kinds of transactions, or some will run domain name auctions. The cost of registering a domain name this way is completely a matter of what you’re willing to pay the current registrant—it can be a couple of hundred dollars or a couple of thousand (or more).


Some top-level domains such as .tv are actually country codes which have been licensed by the country to be sold to anyone in the world. You’re paying for the privilege of having this exclusive extension. In the case of other extensions, such as .pro, you’re paying for an accreditation process among other things. Some specialty domains such as .me have come down considerably in price after initial sales were slow, so sometimes it can pay to wait.

Many domain extensions allow you to register a name for up to 10 years, whereas the minimum registration period is generally 1 year,  but can sometimes be 2 years.Although registering for several years in advance eliminates the worry of missing a renewal, make sure that you don’t forget about your domain. In particular, it’s easy for your contact e-mail to have changed in a few years, so you end up not getting the renewal notice. As long as you keep your information up to date, lengthy registration times can be helpful.

If you’ve registered a domain for a fairly new extension, it might be worth doing a yearly registration. The price for those domains can well go down over time (the .com names were $35 per year not that long ago),
and it would be a shame to lock it in at the higher price. The final point to keep in mind about domain pricing is that domain registrars have nothing to offer except price and service. Having an amazing price with poor service is no deal at all. But what counts as good service from a registrar?

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