How Much Does a Domain Name Really Cost? (Expert Answer)

By Naveed Ahmed | Reviewed by Syed Balkhi | September 10, 2024 | Reader Disclosure

As an expert in the digital marketing space for the past 15 years, I’ve had the pleasure of helping countless individuals and businesses establish their online presence. One of the most common questions I encounter is, “How much does a domain name really cost?”

The answer, unfortunately, isn’t a simple one. Domain name prices can vary wildly, ranging from a few dollars to thousands (even millions) for premium domains. This wide price range often leaves new website owners confused. In this article, I’ll break down the actual cost of a domain name, drawing on my experience and highlighting valuable tips for choosing and acquiring the perfect domain.

To make this a comprehensive guide, I’ve divided it into several sections:

• How Much Does a New Domain Name Cost?
• Hidden Costs of a Domain Name
• How Much Does a Premium Domain Name Cost?
• How to Estimate the Value of a Premium Domain Name
• How Much Does an Expired Domain Name Cost?
• How to Buy a Domain Name Not Listed for Sale
• Doing Your Homework Before Buying a Domain Name
• Frequently Asked Questions About Domain Name Costs

How Much Does a New Domain Name Cost?

Generally, purchasing a new domain name will cost you between $9 and $14.99 per year. However, prices can fluctuate based on the domain extension (e.g., .com, .org, .net) and the registrar you choose.

If you’re starting a new website, I recommend Bluehost. They’re consistently ranked among the top web hosting providers worldwide. What makes them stand out is their offer for WPBeginner users: a free domain name and a free SSL certificate in addition to a 60% discount on their web hosting plans.

Since you’ll need both a domain name and web hosting to create a website, this is the most cost-effective option. However, if you’re only looking to purchase a domain name initially, I suggest Domain.com as a registrar. You can get a 25% discount on your purchase with my Domain.com coupon code.

Here’s a quick comparison of new domain registration costs at various registrars:

Domain Registrar	Pricing
Bluehost	Free domain with hosting for $1.99 per month
Domain.com	$7.45 for .com domain names with our coupon code
Hostinger	Free domain with hosting for $2.69 / month
Network Solutions	$7.49 for .com with our coupon code
HostGator	Free domain with hosting for $2.52 / month
GoDaddy	$11.99 for the first year
DreamHost	Free domain with hosting for $2.59 / month

These prices are for new .com domain names only. Prices for other TLDs (Top-Level Domains) or extensions like .net, .org, .info, .blog, .biz, etc., can vary depending on the registrar. In my experience, users often find these extensions priced differently depending on the provider they choose.

Additionally, there are ccTLDs (country code top-level domains) like .co.uk, .de, .ca, and others. These domains can sometimes be more expensive than .com, especially if you’re targeting specific regions.

There are also TLDs reserved for government (.gov), military (.mil), and educational websites (.edu). You can’t purchase .gov or .mil domain names from domain registrars. Similarly, registering .edu domains is restricted to recognized and accredited educational institutions. I’ve assisted many educational institutions in navigating this process to ensure they meet the required criteria.

When it comes to domain extensions or TLDs, I always recommend users choose .com because it’s the most popular and widely recognized. A .com domain name is suitable for all types of websites, whether personal, business, eCommerce, or anything else.

**Tip:** The easiest way to search for a domain name is using our Business Name Generator or the Nameboy domain name generator.

Hidden Costs of a Domain Name

Beyond the initial domain registration cost, there are a few hidden domain costs and add-ons you should be aware of to make an informed decision.

Annual Renewals

Domain name registration is annual. You can maintain control over your domain name as long as you renew your registration every year.

I strongly advise setting up automatic renewals for your domain names to prevent accidentally letting your domain expire. This doesn’t incur extra costs, but it ensures your online presence isn’t hijacked.

Some domain registrars offer discounts on the first year of purchasing a domain name, but their renewal costs are much higher. If you see a promotion where you can get a domain name for $0.99, understand that this usually applies only to the first year. The annual renewal fees will be significantly higher.

WHOIS and Domain Privacy Protection

ICANN (Internet Corporation for Assigned Names and Numbers) is a non-profit organization responsible for coordinating the allocation and management of domain names. As part of their requirements, every domain registrar needs to collect contact information for the website owner. Many users have reached out to me for help when they encounter this step during domain registration.

This information can be publicly accessible through WHOIS data, allowing businesses and companies to contact you for potential partnerships. In my experience, this is a helpful feature for some, but it’s a nuisance for many. When WHOIS data is publicly available, it often leads to unwanted emails and calls. Many domain registrars offer an add-on called Domain Privacy Protection, which has proven to be a helpful option for protecting your data.

This optional add-on typically costs around $9.99. However, some registrars automatically add it to your cart, so you might need to manually remove it if you don’t want to pay for it. I’ve guided users through this process many times.

Some registrars, like DreamHost, offer free privacy protection with their domains, saving you additional costs.

Business Email Accounts (Email Domains)

When you buy a domain name, you’ll likely see an add-on for email domains to set up a professional business email address. You don’t need to purchase these, as most web hosting companies provide free business email addresses.

If you want a more professional option, I recommend purchasing directly from Google Workspace or Microsoft Office 365 so you’re not tied to a registrar.

**Pro Tip: Secure Domain Discounts for Multiple Years**

Some registrars, like Domain.com, allow you to pay for multiple years upfront. This is a great way to take advantage of the introductory discount for several years. Since you’ll need to pay for domain renewal every year, paying upfront for multiple years can save you a substantial amount. Not to mention, it protects you from future price increases.

However, these hidden fees and explanations about domain costs primarily relate to new domains available for registration. What about premium domains or domains you purchase from other people? Let’s delve into the cost of premium domains.

How Much Does a Premium Domain Name Cost?

Premium domain names are pre-registered, often shorter, brandable, and memorable. Domain investors often register these premium domain names with the intention of selling them later at a higher price for profit.

Premium domain names can cost anywhere from a few hundred dollars to several thousand. It all depends on the uniqueness of the name, the domain’s length, and its overall brand potential.

Some premium domains can even fetch hundreds of thousands to millions of dollars. Here are a few of the most expensive domains ever sold:

• Insurance.com – $35.6 million
• PrivateJet.com – $30.18 million
• Hotels.com – $11 million
• Fb.com – $8.5 million
• Business.com – $7.5 million

You can find premium domain names for sale from private sellers on various websites. I recommend purchasing domain names from reputable websites to ensure a secure transfer. You can find the best places to buy a premium domain name in my guide.

How to Estimate the Value of a Premium Domain Name

Many beginners ask me how to find the right price for a premium or pre-registered domain name. Domain names that are already taken are often sold at a higher price. However, the asking prices are often outrageous, discouraging many novice domain buyers from making an offer.

I advise users to do some research and make a reasonable counter-offer. Remember, the domain investor only makes money if they sell the domain. Like most deals, a premium domain’s value largely depends on how much you’re willing to pay and how much the seller is willing to accept.

However, you can check out domain marketplaces like BuyDomains, Sedo, or Flippa to get a better understanding of market prices and make a respectable offer for a particular niche.

If the domain you’re looking at already has a listed price, you can initially offer 50-75% of the listed price.

**Note:** Most domain value estimation tools are utterly useless, so don’t use them as a reference.

I recommend being cautious when purchasing a registered domain name. If you’re unsure if the domain is valuable for your business, just leave it.

How Much Does an Expired Domain Name Cost?

Thousands of domain names expire every day. These are domain names whose owners have decided not to renew their registration or have forgotten about them. Expired domains present a fantastic opportunity to find great brandable domain names.

Here are a couple of places where you can look for recently expired domain names:

1. FreshDrop

   FreshDrop is a domain marketplace where you can track expired and soon-to-expire domain names. It also features an advanced search function that allows you to narrow down your search.

2. ExpiredDomains

   ExpiredDomains is a search engine for expired domain names. It might not be as user-friendly as other domain search tools, but it has a vast and constantly updated index of domain names.

**Note:** Before purchasing a used, pre-registered, or expired domain name, you need to check it for abuse and other issues (more on that later).

Cost of Expired Domain Names

Typically, you can register an expired domain name at your domain registrar’s standard annual rates. However, if a domain name is about to expire, you can use a domain backorder service. This allows you to place a pre-order for the domain name. If there are no other backorders for that domain name, your order will be successful. Most domain companies charge a small one-time fee (between $25 – $99) for this service, separate from the domain name’s price.

How to Buy a Domain Name Not Listed for Sale

So far, we’ve talked about the cost of domain names available for registration or sold by third parties. What if you have your eye on a domain name that’s already taken but isn’t listed for sale?

The chances are good that you might still be able to get your hands on that domain name. Many users register domain names to start new online ventures. Many never use the domain name or give up on the idea. Since they’re not using the domain name, you can approach the domain owner directly with an offer to purchase it.

If the domain name has a website, you can use the website’s contact form to reach out. Alternatively, you can use a Whois search to find the domain owner’s contact information and send them a message expressing your interest.

Sometimes, people register domain names for future ideas, and even if they don’t use them, they don’t want to sell them. Some people get greedy and demand a premium to part ways with their domain. Remember, you’re buying someone’s “dream idea,” so you need to respect and realistically assess its value.

**Pro Tip:** If you have a business idea, it’s better to register a domain name, even if you’re not 100% sure. You don’t want to risk someone else registering the name before you get to it. I consider this an insurance policy, as a domain costs only $9.99.

Doing Your Homework Before Buying a Domain Name

If you’re purchasing a domain name that’s never been used before, you’re on the safe side. However, if you’re buying a domain name that’s already owned by someone else, you need to perform a basic check.

These domain names could be infringing on copyrights or trademarks, used to distribute malware or spam, or abused for other malicious activities. Don’t worry. There are many tools to help you do your homework.

1. Trademark Check

   First, you should ensure that the domain name isn’t a registered trademark of an existing company. If a domain name infringes on a company’s registered trademark, that company can claim the domain name or demand its removal under ICANN regulations. You can perform a quick trademark search in the United States Patent and Trademark Office database. Just type your domain name into the search field to see if there are any matches.

2. Check Past Domain Name Usage

   Next, you should look at how the domain name has been used in the past. What types of websites were created under that specific domain name? The easiest way to do this is using the Wayback Machine. It’s a massive historical archive of the internet that regularly archives snapshots of websites.

3. Check Historical Whois Records

   Whois tools give you historical Whois records for all types of domain names. This allows you to see when a domain name was created or last renewed, what DNS changes were made, and other historical data.

4. Run a Domain Health Check Test

   Finally, you need to ensure that the domain isn’t used for sending spam, launching DDoS attacks, or distributing malware. You can use MxToolBox’s Domain Health Tool to see if the domain is flagged.

Frequently Asked Questions About Domain Name Costs

While helping thousands of users launch blogs and websites, I’ve answered many questions about domain names. Here are some of the most common inquiries:

Can I get a free domain name?

While a domain name typically costs $14.99 per year, you can get a domain name for free as a bundled offer with various web hosting companies. Hosting providers like Bluehost, Hostinger, HostGator, Dreamhost, GreenGeeks, and others offer free domains with their web hosting packages. Keep in mind that the free domain name is usually only offered for the first year. Renewal prices may be higher.

What is the best domain name registrar?

I believe Domain.com is the best registrar at the moment because it offers the features you need and a 25% discount. However, it’s a wiser decision to get a free domain with web hosting like Bluehost because it saves you time and money. You can always transfer your domain name to another popular domain name registrar if you’re not satisfied with your current provider. Some domain registrars might require you to pay an extra year of registration fees for the domain transfer.

Do I need both a domain name and web hosting to create a website?

To create a website, you need both a domain name and web hosting. A domain name is your website’s address on the internet, while web hosting is where your website files are stored. You can learn more about the difference between domain names and web hosting (explained) in my guide.

Can I buy a domain name forever (permanently)?

No, you can’t purchase a domain name permanently. Domain name prices are for annual registrations, meaning you need to renew them every year. However, you can pay for up to 10 years in advance, guaranteeing you have a domain name for 10 years.

How much does a domain name cost with Wix compared to WordPress?

When you use a hosted website builder platform, the cost of your domain name varies. It’s essential to remember that website builder platforms offer a combination of hosting and domain. For example, Wix domains cost $14.95/year but are free if you choose the annual plan, which costs $13/month.

WordPress.com domains cost $18 per year but are included for free with the Personal annual plan, which costs $8 per month. However, if you’re using a self-hosted WordPress platform, you can set up a website with Bluehost for $2.75 per month, and you’ll get a free domain name. You can learn more about the difference between WordPress.com and self-hosted WordPress.org in my guide.

Conclusion

I hope this article has helped you understand how much a domain name truly costs. You may also be interested in my guide on how much it really costs to create a WordPress website.

If you enjoyed this article, please subscribe to my YouTube channel for WordPress video tutorials. You can also find me on Twitter and Facebook.

If you’re interested in learning more about tech news, feel free to visit my website: www.naveedahmed.me.

FAQs

What are the different types of domain extensions?

Domain extensions are the letters that appear after the dot in a domain name (e.g., .com, .org, .net). They indicate the purpose or nature of the website. Some popular extensions include:

• .com: Commercial websites
• .org: Non-profit organizations
• .net: Network infrastructure
• .info: Informational websites
• .biz: Businesses
• .edu: Educational institutions
• .gov: Government entities
• .mil: Military organizations

Can I transfer my domain name to a different registrar?

Yes, you can transfer your domain name to a different registrar. However, you may need to pay a transfer fee to the new registrar. The transfer process usually takes a few days to complete.

What happens if my domain name expires?

If your domain name expires, it becomes available for anyone to register. This means you could lose your domain name and your online presence. Therefore, it’s crucial to set up automatic renewals to prevent this from happening.

Can I use a domain name for more than one website?

No, you can’t use the same domain name for multiple websites. However, you can use subdomains (e.g., blog.yourdomain.com) to create separate websites within the same domain name.

What is a domain name privacy protection service?

Domain name privacy protection services hide your personal information from the public WHOIS database. This helps to protect you from spam, telemarketing calls, and other unwanted contact. Many domain registrars offer this service as an additional cost.

How do I choose the right domain name?

Choosing the right domain name is essential for your online success. Here are some tips:

• Keep it short and easy to remember.
• Use relevant keywords.
• Avoid hyphens and numbers.
• Check for trademark infringement.
• Make sure the domain name is available.

What are the advantages of using a premium domain name?

Premium domain names can offer several advantages, including:

• Short and memorable names.
• High brand recognition.
• Potential for high resale value.
• Established online presence.

What is a domain name backorder service?

A domain name backorder service allows you to place a pre-order for a domain name that is about to expire. If no other backorders are placed, you can register the domain name. This service is particularly helpful when trying to acquire a valuable domain name.

What is a domain name auction?

Domain name auctions are a way to buy and sell domain names. Auctions are often held on domain marketplaces like GoDaddy Auctions, Sedo, and Flippa. They offer a competitive way to acquire high-demand domain names.

What are some domain name search tools?

There are many domain name search tools available online. Some popular options include:

• Nameboy
• GoDaddy Domain Search
• Domain.com Domain Search
• Namecheap Domain Search
• Google Domains

These tools allow you to search for available domain names, check for trademark infringement, and find domain names that are relevant to your business.

I hope this comprehensive guide has cleared up any confusion you may have had about the cost of domain names. Happy web building!