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Why are some domain extensions more expensive than others?

Last Updated: Sep 26, 2015 03:01AM NZST

When you have a look at our domain price list, you will notice that some domain name extensions are more expensive than others. So why is that?

There are three factors that determine our domain name pricing (apart from the fixed costs of running the business):

Registry price – this is the price a domain registrar (like us) is charged by the registries. What you may not be aware of is that it is not us who are actually holding your domain name but a designated registry such as VeriSign (.COM/.NET), PIR (.ORG), Nominet (.UK) or Denic (.DE). These registries charge a fee per domain to registrars, which can vary considerably from one top-level domain to another. Ultimately, it is up to the registries how much they charge. This varies according to their operational cost, whether they are community-driven organizations, or regulated by the government, for example.

Restrictions and exclusivity – Some organizations or registries that apply for domain extensions and are successful in getting them delegated and launched intend for the domain extension (TLD) to be exclusive. They don't want just anyone to be able to use it. The TLD could be intended for a specific group, like a company, e.g. .BMW. Or a profession, like .ACCOUNTANT or .LAWYER. Or the TLD could be used to describe a specific product or service, like .APP. To register domains with these TLDs, often you have to meet certain criteria and be willing to pay a higher price.

Currency – we usually buy domains in the local currency of a country. Most European country code top-level domains (ccTLDs) are in Euros, while others are not part of the Eurozone, e.g. Denmark uses Danish Krone, the Czech Registry uses Czech Koruna, so they can all be subject to currency fluctuations.

Support cost – some top-level domains have special registration procedures, for others you need to fulfill certain requirements for nameserver changes or WHOIS contact updates. E.g. .EU domain updates are handled in a unique way. Some registries are quite small and not very automated, so managing their domains requires more work (and is why working with those domains can take more time). The world of country code domains is full of exceptional cases that have to be factored in additional support cost into the yearly registration fee as well.

As you can see, there are a number of variables that influence the price for domains. We believe transparency is important, so we hope this article has given you some insight into domain name pricing.

We do offer monthly discounts on registrations and transfers. Discounted prices are shown in green on our domain pricing and transfers pages. (Note that renewal prices the following year are billed at the regular price.)

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