Why Do Some Domain Extensions Cost More|


January 31, 2017

Growth and Productivity, Scaling Your Business 2 min read

Why do some Domain Extensions Cost More?

You may have noticed a stark contrast in prices when registering a new domain name. Some domain extensions are generally cheaper while others cost hundreds of dollars. So why are some domain names expensive when they all function the same way? Let’s explore the reasons why some domains cost more than the others.

Who controls the price of domain extensions?

To better understand why domain extensions are priced as such, it’s crucial to understand who sets these prices. You register your domain name through a domain name registrar such as Vodien. We act as your domain name retailer.

Domain name registrars reserve domains through a wholesaler known as domain name registry. It is an organization that controls top-level domains (TLDs). They create and set rules on domain names, and work with domain name registrars to sell domains to the public.

Nominet and VeriSign are just a few examples of domain name registries that charge registrars per domain name. These fees vary depending on the domain registry and the domain name.

Related Post: 5 Tips for Choosing the Perfect Domain Name

Why do some domains cost so much?

When searching through our Domain Checker, you’ll find that prices will vary for different domain extensions. You can get a .com TLD for as little as S$20 up to S$60 for a .com.sg per year.

So what’s with the huge price difference? The domain registry sets the price that domain registrars pay whenever customers register their domain names. Domain registrars will likely mark up the wholesale prices a little bit more to cover the cost and make a decent profit.

It depends on the domain registries on how much they are going to charge. One of the factors affecting the price is support cost. Some domain extensions may cost more since it requires special support or configuration before they can be used.

Some domain extensions have locked wholesale prices. These prices were negotiated between ICANN (Internet Corporation for Assigned Names) and the domain registry. This is the reason why old domain extensions such as .com, .biz, and .net are typically cheaper.

Since ICANN has no control on the prices of new top-level domains (examples: .music, .buzz, .guru), domain registries can set their own prices however they want. Thus, it is subject to the  laws of supply and demand which can lead to wide price ranges. ICANN do not also regulate registries on how much they can charge for country code top level domains (ccTLDs) such as .uk, .sg, us.

How much is your domain worth?

Domain names are more than just web addresses that identifies a website on the Internet. It has the ability to create a unique brand for your company. Depending on how much you think your domain name is worth, it can go as high or as low as you want it to be. One thing’s for sure, it is something that you shouldn’t skimp on if you really want to boost your site’s online brand.

If you have a cool domain name that you think will reinforce your brand to the next level, then why not do the next best step and have it registered? Register your billion-dollar domain name with Vodien today. Click on the link below to get started.

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