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Why A Domain Price Is Different With Each Service Providers

Why a domain price is different with each service providers?

While planning to purchase a domain name it is logical to make an online survey of various providers and compare them in terms of prices. Often times we come across different prices of same domain name while trying to find out prices from different service providers. This can be quite perplexing.

Multiple Factors Affecting Domain Pricing

It must be appreciated that price of a domain name is influenced by multiple factors. Usually domain names are offered at low upfront prices and providers would earn higher margins by jacking up renewal prices. Following services are usually offered along with a domain name:

 - WHOIS Privacy
 - Website Builder
 - Web Hosting Service
 - Email Service

Buyers must look at the cost of overall package without getting carried away by the deceptively low initial prices of domain names. These are sales gimmicks and are designed to hook customers to extract more money from future transactions.

Hence it would be a better idea to compare price of a domain name by looking at various factors.

Overview of Smart Tactics of Some Domain Sellers

It is observed that many sellers are offering some additional features along with domain names. These features make up for the price differences. You need to take a closer look and understand what additional features are being offered along with domain name.

Sometimes, these additional features are offered to buyers as free services. An interesting example is WHOIS privacy. It is designed to prohibit others from accessing your contact information. Some sellers charge extra amount for this service while it is offered free by some providers.

Sometimes sales promotions activities can bring down prices of domain names. This is commonly observed in case of Top Level Domains. If you are going to purchase a domain name from these providers, then it is better to check renewal charges. Such sellers are known to cover their margins by inflating renewal charges.

The best way to understand prices of domain registration is to have a holistic approach by understanding the fine print. Following are some of the tactics used by smart Alec sellers to fleece customers while selling domain names.

Read Between the Lines

In the section 'Terms and Conditions', which usually appears in the smallest possible font, you might notice a term 'transfer out fee'. This is the fee charged to you while moving away from the seller and is usually twice or even thrice the cost of basic registration. And the worst part is, you will be authorizing the vendor to deduct it directly from your credit card.

It is seen that some sellers lure customers to pay discounted fee for five years period. This is another smart way of making money, since you won't be able to recover the fee if you plan to move out before the completion of five year term due to a 'no refund' policy.

There cannot be any free lunches, especially in the complex business of domain registration. Hence the best bet would be to get associated with a reputed host who practices transparency by paying the registrar exactly according to your registration. You should also be able exercise seamless control on DNS settings of your domain with unhindered access to auth codes, WHOIS records, and registrar locks.

Next time when you are comparing domain prices it would be prudent to consider these factors for a clearer picture. It will help you make an informed decision instead of falling into the trap.

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