Domain Registration and Renewal Costs Mean Little (Unless You Have a Lot)Posted: February 15, 2012 | |
You might wonder why anyone cares much about the rising cost of domain registration. Most domain owners (including companies) own only a few domains at most. In most cases, those domains will cost them less than the annual cost of web hosting, especially if they host on a dedicated server.
Consider however the companies and investors that own hundreds, thousands, tens of thousands or even hundreds of thousands of domain names. All of a sudden, the few extra bucks per year can really add up.
Every business can benefit greatly with more domains. Many of the top businesses like Google, Apple and Amazon make good use of additional domains to strengthen their online presence and help grab even more traffic. It’s certainly worthwhile for any business to look at how more domains can help them.
That said, it’s important to understand the difference between buying domains that can improve your business and buying more domains that don’t really do anything for you. One of the examples we’ve given in the past involves protecting your trademark with domains.
In that article, we mention universities buying .xxx domains in protection from possible adult use, but many domains being registered in this manner were ones no one would ever register. The costs for those domains may seem minor to a university, but it’s completely wasted money which could have been spent on meaningful domains that could actually help them get more students.
The same can be said for domains you get to help promote your business or get additional search traffic. Getting more domains for that purpose is smart thinking, but the domains you get must actually do something for you in that regard. Otherwise, you’re wasting money that could either be spent on domains that can help you or on other business or marketing expenses.
If you do decide to get more domains to help your business, do make sure you get good quality domains even if they’re simply helper domains (we have plenty of posts to help guide you there in our recap). When people do make mistakes with their additional domain purchases, it’s most often due to buying poor domains.
A good thing about scrutinizing the quality of the additional domains you purchase is that you could end up with valuable assets whether or not they help your business much in the end. You can wind up with good investments that even
For example, one of my early domain and web development experiences involved purchasing a domain for about $600 for a site I wanted to start. I registered about a dozen similar domains that were tied in to the site I wanted to make. I could have registered much more, but I knew well enough that it could get out of hand and I felt I got the ones that were high enough quality to get.
Unfortunately, I ended up dealing with a flaky programmer that never delivered the site they promised. When that happened, I let the site idea go. Given I was generally buying domains to sell anyways and felt confident in the quality of all those domains I got, it was no big deal to turn around and sell them.
Not long after that, I sold 3 of the domains. How much did they sell for? $800, $1,000 and $1,300. The kicker? None of them were the primary domain I paid $600 for – these were all part of the additional domains I had registered for about $8 each.
Those additional domains made the idea profitable even though it never got off the ground! That may not have been the case however if I instead bought 100 additional domains and paid years of renewal on each of them. Most of them wouldn’t have been good enough quality domains to either help the site or sell.
So moral of the story, if you do dive into buying additional domains to help your business, make sure you’re buying domains with a definite purpose that are good enough to serve that purpose. Don’t go overboard with it or those registration and renewal fees can add up and eat into your bottom line.