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January 31, 2024How Much Does a Domain Name Really Cost? (Expert Answer)

If you have ever tried to register a domain name before, then you have likely seen a wide-variety of prices ranging from $9 to several thousand dollars. The cost of a domain name varies based on the domain extension (such as .com, .org, .net), domain registrar, availability, and few other factors. Apart from new domain names, you can also buy premium domain names from someone else who has registered it before you. Domain name investors often register premium domain names that are shorter, brandable, and easy to remember for the sole purpose of reselling. In this article, we’ll explain how much does a domain name really costs. We’ll also show you different ways to buy a domain name including a way to get one for free. Since this is a comprehensive guide on domain name costs, we have broken it down into few sections:
- How much does a new domain name cost?
- What are the hidden costs of a domain name?
- How much does a premium domain name cost?
- How to estimate the value of a premium domain name?
- How much does an expired domain name cost?
- How to buy a domain name not listed for sale?
- Things to look for before buying a domain name
- Frequently asked questions about domain name costs
How Much Does a New Domain Name Cost?
Buying a new domain name would typically cost you anywhere between $9 and $14.99 per year. However, these prices may differ based on the domain extension or the domain registrar you choose. If you are starting a new website, then we recommend using Bluehost. They are one of the top web hosting companies in the world. They are offering WPBeginner users a free domain name + free SSL certificate on top of the 60% discount on their web hosting plans. → Claim Your Free Domain Name with Bluehost ← Since you need both a domain name and web hosting to make a website, this is the most affordable option to get started. If you just want to purchase a domain name, then we recommend using Domain.com as your registrar. You can use our Domain.com coupon code to get 25% off your purchase. Here is how much a new domain registration costs with different registrars.
- Bluehost – Free domain with hosting $2.75 / month
- Domain.com – $7.45 for .com domain names with our coupon code
- HostGator – Free domain with hosting $2.64 / month
- GoDaddy – $11.99
- DreamHost – Free domain with hosting $2.59 / month
These prices are for new .com domain names only. The pricing of other extensions such as .net, .org, .info, .blog, etc. will vary based on the domain registrar you use. When it comes to domain extensions, we always recommend users to use .com because it’s the most popular one.
Hidden Costs of a Domain Name
Aside from the domain registration cost, there are few hidden domain costs and upsells that you should be aware of, so you can make the most educated decision. Yearly Renewals Domain name registration is done on a yearly basis. You can maintain control over your domain name as long as you continue to renew your registration each year. Some domain registrars offer domain name discounts on first year purchase, but their renewal costs are much higher. If you see a promotion where you can pay $0.99 for a domain name, then please know that it’s usually for first year only. Your annual renewals will be at a much higher price. WHOIS and Domain Privacy ICANN is the not-for-profit public-benefit corporation that is responsible for coordinating the assignment and maintenance of domain names. They require each domain registrar to collect contact information for the website owner. This information can be publicly accessed using WHOIS data. Other businesses and companies can use this information to contact you about a potential business partnership. Having the WHOIS data publicly available can result in unwanted emails and phone calls. This is why many domain registrars sell an add-on called Domain Privacy. This addon typically costs an additional $9.99, and it’s completely optional. The problem is that often registrars automatically add it to the cart, and you have to manually remove it if you don’t want to pay for it. Some registrars like DreamHost offer free domain privacy with their domains. Business Email Accounts (Email Domains) When buying a domain name, you will likely see an addon for email domains for setting up a professional business email address. You do not need to buy this because you can get a free business email address with most web hosting companies. If you want a more professional option, then we recommend buying this directly from G Suite or Microsoft Office365, so you’re not locked into a registrar. Pro Tip: Secure Domain Discounts for Multiple Years Some registrars like Domain.com allows you to pre-pay for multiple years upfront. This is a great way to get the introductory discount offer for multiple years. Since you have to pay for domain renewals every year, pre-paying for multiple years can be a significant saving. Not to mention, it saves you from future price increases. But these hidden fees and domain cost explanation is primarily for new domains that are available to register. What about premium domains or domains that you buy from other people? Let’s take a look at the premium domain costs in details.
How Much Does a Premium Domain Name Cost?
Premium domain names are pre-registered domain names that are often shorter, brandable, and more memorable. Often domain investors register these premium domain names to sell later at a higher price for profit. Cost of premium domain names can range anywhere from a few hundred dollars to thousands of dollars. It all depends on the uniqueness of the name, domain length, and its overall brand potential. Some premium domains may even cost hundreds of thousands to millions of dollars. Here are some of the most expensive domains sold in history:
- Insurance.com – $35.6 million
- PrivateJet.com – $30.18 million
- Hotels.com – $11 million
- Fb.com – $8.5 million
- Business.com – $7.5 million
You can find premium domain names listed for sale by private sellers on various websites. We recommend buying domain names from reputable websites to ensure a safe transfer of the domain name. See our guide on the best places to buy a premium domain name.
How to Estimate The Value of a Premium Domain Name?
Many beginners ask us about how to find the right offer to make for a premium domain or a pre-registered domain name? Domain names that are already taken are often sold at a higher price. However, most of the time the asking price is outrageously high which discourages many inexperienced domain buyers from making an offer. We recommend users to do some research and make a reasonable counter offer. Remember, the domain investor only makes money when they sell the domain. Like most trades, the value of a premium domain largely depends on the maximum you’re willing to pay and the lowest the seller is willing to accept. However, you can look at domain marketplaces like BuyDomains, Sedo, or Flippa to better understand the market rates, so you can make a respectable offer for a particular niche.