The first year is a promotion
Registrars often sell the first term near cost to win the customer, and expect to earn it back on the renewals that follow.
Domain costs, line by line
What a business domain name costs after the first year
A domain is held by the year, so the price that matters is the one you keep paying. The first-year rate is often a promotion. Renewal, privacy and transfer charges decide what the name costs to keep.
Your registrar
One domain name, one business
- Year one
- The registration itself, often at an introductory rate that applies once.
- Renewal
- The regular yearly rate, charged for as long as you keep the name.
- Privacy
- Keeps your contact details out of public lookups. Included by some registrars, a yearly add-on at others.
- Transfer
- Paid to the registrar you move to, and it usually adds a year to the registration.
The renewal line repeats. Plan around that one.
The bill
What gets charged, and when
A domain is registered for a set term and renewed before that term ends. Some of these charges come once and some come back every year.
- Registration
- Once, when you first buy the name
- The price of the first term. It is the number in the advert, and it is often discounted for the first year only, sometimes on one extension only.
- Renewal
- Every term, for as long as you hold the name
- Usually the registrar's standard rate. Because it repeats, it makes up most of what a name costs over the years you own it.
- Privacy
- Each year, unless it is included
- Replaces your personal details in public registration records. Many registrars now include it. Where it is an add-on, count it alongside the renewal.
- Transfer
- When you move to another registrar
- Often priced close to a renewal, and on most extensions it extends the registration by a year, so the money is not lost on the move.
- Late renewal
- Only if the name lapses
- A short grace period may cost no more than a normal renewal. Past that, getting the name back can mean a restoration fee well above the usual rate.
The second year
Why renewal usually costs more than the first year
The gap between the first-year rate and the renewal rate has a few ordinary causes, and most of them can be spotted before you pay.
The extension sets a floor
Each extension is run by a registry that charges registrars a wholesale price. A very cheap first year on an unusual extension can renew far higher than a common one.
Premium names have their own rules
Some names are listed at premium prices, and a few of those carry a premium renewal as well. Check the renewal rate for that exact name, not the general price list.
Paying ahead can hold the rate
Registering for several years up front generally fixes your price for the prepaid term, at the cost of more money today. Some multi-year offers discount only the first year, so read the checkout line by line.
At checkout
What else ends up in the cart
A registrar sells other things beside the name. None of them is needed to own it, and each one can add its own yearly renewal.
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Usually part of the name
DNS management, and at many registrars basic forwarding. Check they are included before paying for an upgrade.
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Often better bought separately
Business email and website hosting. You can point a domain at whichever provider you choose, so neither has to come from the company holding the name.
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Often not needed at all
Security certificates, which many web hosts include. Matching names on other extensions, unless you have a specific reason to hold them.
On a small budget
Choosing a registrar when every yearly bill counts
The cheapest registrar for a business is the one that stays affordable for as long as the business keeps the name.
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Compare renewal rates first
Find the registrar's full price list rather than the homepage offer, and look up the extension you actually want.
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Add up the years
Work out the cost over as long as you expect to keep the name. A few renewals will usually outweigh any first-year saving.
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Check whether privacy is included
If it is an add-on, it repeats every year and belongs in the same sum.
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Read the auto-renew terms
Know when the card is charged and what notice comes first. Leaving it on protects the name, as long as the card on file still works.
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Find out what leaving involves
Moving should be routine: unlock the domain, get an authorization code, and wait out any lock period after a new registration.
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Register it to the business
Use the business's name and an email address you will still read years from now, because every renewal notice goes there.
Later on
Moving a name, and missing a renewal
Two things that happen to a domain years after it was bought, and both follow a set order.
Moving to a cheaper registrar
- Unlock
- Turn off the transfer lock at the current registrar.
- Get the code
- Request the authorization code, sometimes called an EPP code.
- Start and pay
- Begin the transfer at the new registrar and pay its transfer charge.
- Approve
- Confirm the request if asked, then check that DNS settings and email still work.
When a renewal is missed
- Expiry
- The website and email tied to the name can stop working.
- Grace period
- Many registrars still let you renew, often at or near the usual rate.
- Redemption
- Getting the name back now usually means a restoration fee on top of the renewal.
- Release
- The name can go to auction or become open for anyone to register.