How Much Does a Domain Name Cost? 4 Key Factors Influencing What You Should Expect to Pay

adminMarch 11, 2023

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Buying a domain name is a big decision.

On the one hand, you want to get the best possible name because you know it’s an important part of your brand. On the other hand, your budget is limited, so you must be willing to make compromises.

Reading: How to create an email for your domain

But how much does a domain name cost? And also: how much should you be willing to spend on a domain name?

Why your domain name matters

You might think your domain name isn’t a big deal. After all, it’s just a web address, not a company name, right?

In fact, choosing a domain name is a very important decision as it affects your branding, traffic and credibility.

So you want to start your freelance business but have no idea how much your domain is going to cost, eh? 😵 We’ve analyzed the numbers and put together this guide to help you make the best call!Click to Tweet

Your domain name and branding

People often think that the word ” Brand” means a company name.

However, a brand is much more than that, your brand is the overall company image that you present to the world.

It is important to ensure that everything in your company from company name to Domain names to website design to content to tone of voice, works together to convey the image you want to project.

Imagine you’re interviewing and thinking that the candidate is great.

She’s professional, she has the experience to match, she seems a good fit in terms of company culture…

But when she leaves, you take another look at her resume and you notice that her email address is [email protected].

No offense to the sk8ergurls out there, but let’s be honest: such an email address would be mak if you put your initial impression of her in Ask a question.

Well, the same goes for branding. If everything about your business conveys a certain image, but your domain name doesn’t fit that image at all, potential customers will be wary.

And the last thing you want to do is give them a reason to be suspicious.

Your domain name and traffic

Your domain name matters in search results.

As SEO expert Brian Dean in explains in his article “Google’s 200 Ranking Factors: The Complete List (2019)”, while including keywords in the domain name doesn’t give you the boost it used to, it still serves as a relevancy signal.

Besides, if that Since the target keyword appears as the first word in the domain name, it gives you an advantage over websites that have the same keyword in the middle or at the end of a domain name (or not at all).

The direct traffic aspect also needs to be considered, ie the people who end up on your website inde When they type your address into their browser.

If your domain name is hard to remember, you’re going to lose some of these people because they misspell it and go to… god knows where be brought.

Remember that buying traffic is expensive, so you must do whatever it takes to get your organic traffic.

Credibility

Not all Domain names are the same.

According to research by Growth Badger, .com is the most trusted TLD extension out there.

Plus, people are 3.8x more likely to People who don’t remember a website address ending in .com than anything else.

Here’s how the most popular domain extensions stack up in relation to the perceived Trustworthiness:

Of course, it’s important to remember that this was probably done with a was a generic sample of 1500 people, which means your target audience might perceive certain domain extensions differently.

For example, the .io extension might seem strange to most people, but it’s probably safe to say that techies trust it given how trendy it is in the tech world.

There are also regional extensions to consider, for example if you are targeting a Lithuanian audience then using the .lt extension is fine, but people outside of Lithuania probably wouldn’t be receptive to it.

All of this means you need to give your domain name the attention it deserves.

How to choose a domain name

As we explained in our How to choose a domain name article, there are a few six important things to consider when making a purchase.

1. Your domain name should be easy to remember

You want to make sure your domain name is easy to remember. But what exactly does that mean?

Basically, the more things you ask someone to remember, the harder it is for them to remember.

When it comes to domain names, each word and symbol is a separate element, which is something to keep in mind when considering different options.

For example, www.luciddreaming . com is easier to remember than www.world-of-lucid-dreaming.com (note that using hyphens is particularly confusing).

Try to keep your domain short, avoid the Use symbols and get a fountain -known extension.

2. Your domain name should be easy to type on mobile

Do you know what happened on June 29, 2007?

Let me give you a couple of clues: Apple. Steve Jobs. iPhone. Yes, you guessed it: On that day, Steve Jobs unveiled the first iPhone that changed the world forever.

Now, a little over a decade later, we’re all battling smartphone addiction, and we’ve gotten to the point where dumbphones are making a comeback. But what does this have to do with domain names?

Well, in the first quarter of 2019, mobile traffic made up 48.71% of global website traffic, and it’s safe to say that number will continue to grow.

This means that it is best if your domain name is easy to type on a mobile phone.

3. Your domain name should be search engine optimized

A keyword in the domain name doesn’t give you a huge advantage over your competitors in terms of search rankings.

But it can give you a small advantage , which is not to be scoffed at given the insane competition to appear on the first page of Google search results.

Nonetheless, it’s not necessary, so if you can’t find a way to include a keyword in your integrate domain names, don’t push it.

4. Your domain name should be brandable

Your domain name must be brandable.

Basically, when people hear your domain name, it must sound like a reputable company in your industry and have a hip vibe.

So if you were starting a remote job board, for example, you could call it www.remotejobsboard.com… But doesn’t remoteok.io sound much better?

Of course you have to Considering industry standards, boring names work for businesses that need to appear formal.

Let’s say if you run a funeral home then it’s important that you be serious, nobody wants to be in a ‘hip ‘ Funeral directors hold a wake.

You probably don’t need to be formal though, so get creative!

5. Your domain name should not violate any law

There was a time when the Internet was the Wild West.

Those days are long gone. Now it’s full of deep-pocketed companies that will bankrupt you if you look at them from the wrong perspective. That’s why it’s important to be careful.

Imagine that. You’ve come up with a great name. You register it. You launch your website. And then, just as your business is picking up steam, you’re hit with a cease and desist letter.

“What the…???” is your first thought.

But then, as you If you decipher the legal parlance, you realize that your domain name appears to be trademarked, which means you’re in a world of trouble.

You can avoid this by exercising due diligence.

For example, you can check US trademarks on the website of the United States Patent and Trademark Office.

Alternatively, you can check the trademarks on whatever country you do business in through the local equivalent of the USPTO.

And of course Google can help you too, because if nothing comes up, you probably don’t need to worry.

Well, unfortunately, if you’ve come up with a cool name, chances are you’re not the first person to come up with it does, which means you have to go back to the drawing board at the end.

But remember that going back to square one is far better than being hit with a lawsuit, so go ahead and do it here no compromises.

6. Choose the right TLD for your domain name

Your TLD affects your credibility, so it’s important to choose wisely.

Check out this graphic on the subject:

TLDs ordered by trust, Memorability and Usage Time — TLDs ranked by Trust, Memorability, and Usage Times

These are the extensions to consider when serving a global audience.

Of course, .com domain names are much more expensive than the others, so you may have to compromise there if you don’t have the budget.

Don’t get stuck in analysis paralysis

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Choosing your domain name is a serious decision. You should treat it with respect and give it the attention it deserves.

Apart from that, it’s also important not to get stuck in analysis paralysis. A good domain name that you can register today is better than a perfect domain name that takes three months to develop.

What to do if you cannot get the domain name you want?

It is not always possible to get the domain name you want. What should you do then?

It may be unavailable or parked. You can contact the owner and make him an offer. Alternatively, you can change your domain name by adding a word to it. For example, if you use your product name, you should add the word “get” like Drip did with www.getdrip.com.

It could be outside of your budget. You can significantly reduce your domain name costs by choosing a less popular domain extension. Just don’t overdo it. A wacky extension that no one has seen before could hurt your brand.

It might be trademarked, like “WordPress”. If that’s the case, it’s best to just drop the idea and get back to the drawing board. Don’t play with fire if you don’t want to get burned.

Yes, it’s really annoying when you can’t get the domain name you want, but your only option is to get creative. And who knows, you might come up with something better?

How much does a domain name cost?

So how much does a domain name cost? That’s a pretty tricky question to answer since the price range for domain names is insane.

For example, at GoDaddy, you can get a .xyz domain name for $0.99. While www.lasvegas.com sold for $90 million in 2005.

Well, this is the full range of domain name prices, $0.99 and $90 million represent opposite ends of the spectrum.

But what determines how much a domain name costs?

Availability

Of course, if the domain name is available, it will be cheaper as if it were already owned by someone. Wanting something that only one person can sell you puts you in a very weak position when it comes to negotiating the price.

This is especially true if that person can visit you and find that you have money. In fact, there are people who intentionally buy domain names that someone wants in the future.

It’s best to find a domain name that is available if you want to save money.

Keywords

Keywords vary greatly in terms of search volume, which affects the cost of domains using a particular keyword.

They also differ in terms of profitability , which also affects how much a domain name with a particular keyword costs.

For example, the keyword “Las Vegas” has a huge search volume because there are always many people wanting to visit Las Vegas . Also, this keyword is incredibly easy to monetize since tourists need accommodation, a car to rent, shows to watch, etc.

That explains why www.lasvegas.com is priced at $90 million.

However, since keywords in the domain name aren’t as important as they used to be, it’s probably best to use a unique name without lucrative keywords.

Domain Extension

Your choice of domain extension can have a massive impact on the price of the domain name.

Basically, if you want that .com, you should be prepared to pay premium price.

For example, when Kyle Byers was conducting his domain extension study, he used a made-up domain name “matressranking.tld.”

Back then, you could get this domain name with a reputable domain extension for $12-$15, with Except for the .com extension, which costs an additional $4,250.

You have to decide if you really need .com (or not). How important is credibility to you?

Don’t forget the extra costs

It’s easy to get so focused on buying a domain name that you forget the extra costs involved.

Obviously, a domain name is not a one-time purchase, it must be renewed every year, which will generally cost you exactly what you paid for it (expensive domain names are an exception to this, as they cost a lot more to buy cost than maintenance).

But then there are also various add-ons that you can purchase, the most popular of which is Privacy Protection, which ensures that your privacy or business details are not displayed , when people search for your domain name.

In general, these additional costs don’t add up too much, but it’s worth considering anyway.

How much should you pay for a domain name?

Okay, so how much should you pay for a domain name?

Well it all depends on your budget, if you are a billionaire and want to buy www.lasvegas.com, do that You are.

However, you’re probably not a billionaire, which means that you need to think carefully about how much you are willing to invest in a domain name.

There is a common mistake that young entrepreneurs make. They use their limited seed capital to give the appearance of a reputable company. You get an expensive domain name, custom web design, business cards, etc. But all this isn’t a business, it’s a business.

Sure, you must look professional, but don’t let that distract you from what actually makes you money, which is selling your product or service.

Basically, when you’re just starting out, you should only spend money on Output things that directly contribute to your bottom line. Everything else can wait.

Thefacebook.com 2004 — Thefacebook.com, in 2004 (Image source: web.archive.org)

For example, when Mark Zuckerberg started Facebook in 2004, it was called The Facebook and hosted on www.thefacebook.com.

Facebook acquired its current domain name in 2005 for $200,000.

By then, Mark Zuckerberg had validated his idea, the social network was growing rapidly, and Facebook had already received their first investment from PayPal founder Peter Thiel.

Zuckerberg wanted to call his social network Facebook from the start, but the domain name wasn’t available, so he just added the word “das” to it and got to work.

When you’re just starting out, you have to be frantic, you want to use that seed money to get as much runway as possible.

That means getting a cheap domain name, even if it’s not the one you really want, and focus on generating revenue.

Once you get your business off the ground you can invest in a better domain name by getting a better name and extension, or both.

Be patient. Eventually, if you have a viable business idea, you will have enough money to comfortably afford a better domain name. But don’t put the cart before the horse.

Where to buy a domain name

Companies that sell domain names are called domain registrars.

There are quite a few domain registrars out there. How can you decide which ones to choose?

What should you look for in a domain registrar?

We covered this in detail in our How to choose the best domain registrar ( Our Recommendations).

Here are the top things to look out for:

Low price. You don’t want to spend more money than you have to. Luckily, the competition in this industry is fierce, so all major companies offer affordable prices.

Free WHOIS protection. People can look up the details of any domain name and find out who owns it. This can lead to privacy issues. It is best to use WHOIS protection, which prevents snoopers from seeing this information.

Automatic renewals. If you don’t renew a domain name, it will eventually be put back on the market. This can lead to serious problems if an enterprising person snags your domain name and then offers to sell it back to you for a significant amount of money. Because of this, it’s best to go with a domain registrar that will automatically renew your domain name.

Even if a domain registrar isn’t transparent about their pricing, you should do so as a See warning sign stay away.

Another thing to watch out for is a bad user interface. You shouldn’t need a computer science doctorate degree. to find out how to do basic tasks like parking or transferring domains.

And finally, if a domain registrar doesn’t offer 24/7 customer support, it might be too risky to use their services. What if something goes wrong and you need immediate help? You can lose a lot of money in potential revenue if the problem isn’t solved right away.

GoDaddy vs. Namecheap

Even if you follow the above criteria, choosing the right company could can be a challenge.

You can simplify this task by narrowing the list down to the two most popular options: GoDaddy and Namecheap.

GoDaddy

GoDaddy is the the industry’s most popular domain registrar with over 18 million customers.

But being the biggest doesn’t always mean being the best. If you look at GoDaddy reviews online, you will most likely find a lot of negative things. They offer a variety of services such as B. WordPress hosting, so if one product isn’t as good as the other, it also affects their reputation.

Namecheap

Namecheap is another popular domain name provider and one of GoDaddy’s biggest competitors. According to their press release, they manage over 10 million domains.

Which should you choose?

It’s best to check both websites for your desired domain name to see which company can give you a better deal .

Namecheap offers .com domains at a lower price than GoDaddy (both for the first year and on renewal). However, it’s important to remember that money isn’t the only thing that matters, so you might want to take a closer look at GoDaddy and Namecheap’s track record of their views and behavior to see which companies represent the values you resonate with better.

Not sold on GoDaddy or Namecheap? Be sure to read our Google Domain Reviews (Pros vs. Cons) blog post.