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You are here: Home / Blog / Here Are Several Reasons For Disparities In Prices Of Domain Extensions

Here Are Several Reasons For Disparities In Prices Of Domain Extensions

Updated: May 12, 2020 By Aidi Leave a Comment

Pricing rates differ from one service provider to the other and you are likely to notice this when registering for a new domain. The main extensions are quite affordable although a majority will cost you quite a fortune with some going for several hundreds of dollars. But given that all domain names operate in a similar manner, you have no reason whatsoever to pay more.
Here Are Several Reasons For Disparities In Prices Of Domain Extensions
Therefore, we try to offer the reasons behind the disparities in pricing rates for various types of domain names.

Registrars and Registries

The first step is to know who sets the rates for domain names. When you buy your domain name from a retailer, such is called a registrar. Registrars keep the domains names via registries which we can call wholesalers. In turn, the registries get power over every top-level domain alternative, and this is the bit of the dot in your domain e.g. .biz, .net, or .com.

The simplest way to understand this is to think of the registrars as the target and the registry as being Coca-Cola. You cannot purchase directly from the company, but you must purchase via a retailer who is the target. The retailers and wholesalers of domains, just like in the example of Coca-Cola, set the pricing rates.
Wholesalers set prices the retailers must pay whenever a client registers one of the domain names from wholesalers. Just like all other stores, the domain retailer adds up to the total wholesale price when making the domain available for procurement.

Consider this; Verisign is the wholesaler for .com. This means that when a retailer registers a domain name for a client, Verisign will charge them a particular rate. It means for the registrar to recover the cash and yield returns, they must price them a little higher.

Disparities in Domain Prices

When you sample domain options, you’ll notice a gap in the prices. A company like Namecheap provides domain alternatives for as low as 0.88 dollars.
However, many high-end domains cost more. Again, if you wish to register a domain extension like .sucks, you must be ready to cough several hundreds of dollars. In fact, it goes beyond that; some domain options cost even thousands of dollars more. Unless you are a filthy rich person, buying a domain like a .rich will cost you an arm and tooth.

Question Is Why The High Costs For Some Domains?

A registrar such as Namecheap only adds a small fee to every domain it sells to recover some expenses. Therefore, when there is a huge disparity in pricing, it’s just because the registry charges more for the domain. Still, some domain names come with fixed wholesale rates negotiable between the wholesaler and the non-profit which is known as ICANN (Internet Corporation for Assigned Names and Numbers). ICANN is a moderator for domain names. The prices for domain alternatives like .biz, .net, or .com are limited by the regulator at a wholesale price since they are old domains and that’s why the register finds them expensive.

However, the moderator has no powers price over the never TLD alternatives like .news, .shop, or .dub. In fact, the registries for the domain extensions levy whatever price they so wish for such domains: hence, making them subject to the rules of chain demand and supply for the open market. In the end, you’ll encounter the price disparity. Also, ICCAN cannot control what the registry of domain alternatives like .ca or .us levy.

Is there Any Value in Purchasing a Pricey Domain Name?

Assume the domain name you are looking for costs about 50 dollars, but there is another one that costs 10 dollars, make sure you rethink your decision to bypass the expensive domain to save a few dollars. Remember that your domain name is your corporate brand; it is your identity on the internet. In other words, it is your calling card and your address that connects you to your clients and the world. Your domain name is as serious as that, and you cannot afford to skimp on it anyhow. Therefore, going for the pricier domain could be worth all your money.

With the information in this article, you should consider registering your next domain name with a company such as Namecheap. In fact, its .com domain may cost you as little as 5.88 dollars albeit for a limited time. .COM domain name just $0.99 at GoDaddy, 1&1…Take advantage of the deals before any shifts in pricing occurs.

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