How To Avoid Expensive Domain Name Renewals
You probably registered a domain name last year at a very good price by using a coupon or offer. Unfortunately, when you try to renew it you see a very expensive price and you can’t understand why.
I will present an easy table to find out where you can find the cheapest renewal prices. Keep reading even after this table since I will explain how you can always get the cheapest price and some additional tips. You will also find out why renewals are always more expensive.
*These prices might change so just follow the links below of the table to see the updated ones.
*You will also pay a small fee (0.18$) to ICANN which is the organization that oversees the domain registrars. Consider that if you are based in EU you will pay an additional tax (VAT) close to 20% (it depends on the country).
Domain Renewal Price Comparison
Continue reading since I will share with you some tips that will help you to get always the best price for domain name renewals. I will also explain to you why domain renewals are more expensive. If you would like to know what happens when you don’t renew a domain, check here: What Happens When A Domain Expires?
Why Domain Renewals Are So Expensive
Domain registrars want to get new customers so very cheap prices for the first year is a good strategy. They know that you need to renew your domain name every year so they can recoup some of the original discounts. They also know that most of the times someone who buys a domain name will probably create a site or a business email.
They don’t earn so much from a domain name registration so they are trying to sell you other services too. These services can be related to website hosting or business emails.
It is a usual tactic that in some cases (and not all the registrars) try to upsell things that you don’t currently need. Even in the case that they are useful services, you can always add them after you complete your registration.
When you see a very cheap initial domain registration you should immediately check the renewal price too. You should always consider the long term cost of a purchase.
If you are curious who takes the biggest cut when we buy a domain name check my previous post: Why Do Domains Cost Money?
Why Godaddy Renewals Are So Expensive
Godaddy is the biggest registrar around. They invest a lot of money on marketing efforts. They are also known for the very cheap registration they offer for the 1st year. Sometimes the price can be less than 1$ for first-time users.
You should be aware that the “wholesale” price for a .com domain name is around 8$. This is the cost for Godaddy when someone purchases a domain from their site. The same applies to any registrar, at least for .com.
As I explained earlier the registrars need to recoup this cost in the long term. That’s why Godaddy offers so many up-sells during a domain name registration since it needs to have some profits.
Of course, another way is to increase a lot the domain renewal from the second year and beyond. Most of the people are not so tech-savvy and they afraid to transfer a domain name. So, they usually end up paying expensive renewals.
They are also more familiar with Godaddy due to their ads and they don’t trust other registrars.
Let’s check now some other tips that will help you to save some more money.
Transferring A Domain vs Renewal
A cool trick is to transfer a domain name in between registrars when you are close to the renewal. That way you will always get better prices compared to the renewal price. When you transfer a domain name your new registrar will charge you the renewal fee (which will be lower). Registrars use the low transfer price as an initiative to move your domains to them.
In reality the transfer fee is just the renewal price.
The domain registrar can’t refuse you a transfer. Some they delay it some days or they ask you again and again if you are sure about your choice.
Of course, you can avoid that hassle if you initially chose a registrar with good prices. You need also to consider that price is not always the only thing you need to consider. Things like interface, support, and security are crucial too.
*Check also the links I shared in the previous paragraph to compare the transfer cost since these prices might change.
Domain Name Transfer Pricing
Search For Coupons
It is harder to find coupons for domain name renewals compared with first-time registrations but you can try. I suggest looking at Namepros which is the best forum for every matter related to domain names. From time to time you can find some good deals.
Another cool trick is to abandon a cart but rarely it works with renewals. You can try to reach just one point before you finish the transaction and then abandon the cart. Sometimes the registrar will send you a coupon code in your email. Usually that works for other transcations aside renewal but you don’t lose anything if you try it.
In case you don’t want to mess with constant renewals and you just want to buy a domain name for life just check my previous post: Can You Buy A Domain Forever?
Prefund Your Account
If you are planning to register and keep a lot of domain names, many registrars offer discounts if you pre-fund your account. When you deposit a big amount of money you are eligible for bulk pricing. I know that Namebright.com, Dynadot.com, and Namesilo.com have that option.
Don’t expect huge discounts but if you have a lot of domain names you will pay slightly less.
Sometimes registrars make special discounts for people in certain countries. I don’t encourage this tip but it is something I need to mention. You can take advantage of this type of discount if you use some VPS. In that case, it will seem that the traffic comes from this country and you will see the updated price.
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