How much does it cost to buy a domain name? Is it a yearly expense?

Whether it’s a clothing brand or a billion-dollar law firm, its rare that the companies would exist without a website for their platforms. These websites are the bridges that are formed between the customers and the businesses, whether they are local, domestic, or international. The impact of a company, as well as it’s visibility, increases if the platform has a website.

If you’re planning to take your business on new heights by creating a website for the platform and bringing it online, then there are certain things that you’ll have to consider before you work on the plan. The most important thing for the process of developing a website is acquiring a domain name that suits your business the best and is available. Before you proceed further, the next thing you would want to know is how much the domain is going to cost you.

What is a domain?

A domain name is the name with which your website will be recognized. A domain is a name that gives your website existence on the web. However, it is not necessary to use the same name as the company for the domain name. The global system of Domain Name System (DNS) is the platform that assigns addresses for servers and web pages. The domain name is the part that comes after the ‘www.’ and the same name will be used for the official email of the company.

What are the TLDs (top-level domains)?

TLDs are the rightmost part of the domain, which marks the beginning of the domain. The commonly used TLDs or premium domain names are:

  • .com
  • .org
  • .net
  • .biz
  • .edu

How much does a domain name cost?

There are times when the domain that you are looking for is not available, and sometimes the available domain is way too expensive for a person to buy. The price of a domain name depends on various factors. These are:

  • the platform you purchase from (a registrar, aftermarket service, private purchase, etc.)
  • domain extension (.com, .in, .shop)
  • the duration of registration

Buying a domain for your business is like an investment as people get what they are willing to pay for. Several costs have to be taken care of before the actual setup of a website begins.

How much does a domain name cost per year?

The minimum amount you can spend for a domain name and hosting on an average are $10-$20 a year. This can, however, change depending on how much you are willing to spend for the domain name. The prices can go from a few dollars to hundreds to thousands to millions as the exclusivity of the domain name increases.

Note: In 2019, Block.one purchased the most expensive domain name, ‘voice.com,’ for $30 million.

Once the domain name is decided, and all the necessary purchases are made, the website needs a host to store its data and files on a server so that users across the world can use the platform. Various web hosting companies provide this service, and in the initial phase, it is recommended to use the shared hosting services as it fits well under the budget, and a person can spend as low as $50 per year to use these services.

Things will change once the website becomes famous, and the traffic would start growing. This will be the time for the company to shift from the shared hosting platform to Virtual Private Servers (VPS). This shift to private servers or a dedicated server could increase the yearly expense to $1000 and more.

How much does a domain name cost through a registrar?

The cost of a domain name would depend on the registrar platform you choose to buy the domain name. Each registrar has it’s own standard pricing, packages, fees, and accessorial fees. TLDs are the most commonly used domains across the world, and they have standard pricing.

Sometimes, there are complaints about the registrars, and it was found that most of them charge fees that the customer was not aware of. These charges are taken in the form of auto-renew or transfer out charges, and these are mentioned in ‘Terms of Service.’ Today’s world is fast, and people don’t take time to read the contracts and terms and conditions.

Choosing the right registrar for the right domain is crucial as there would be times when the attractive cheap domain can have hidden charges that can damage the customer’s funds. But then there are times when the domain you want is available, and a reputable registrar is chosen for the service; the low price for the domain can turn out to be a good investment.

Conclusion

In the end, the cost of a domain depends on the amount you are willing to spend for your business and the things you are looking for in a domain. If you’re ready to settle for any domain name that you are given, then the cost will be low. But if you are looking for a specific domain name, then that particular domain can drain your wallet. Most importantly, the person should be aware of the hidden fees, discount scams, and read the terms of agreement carefully.

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