Domain Costs: What does a domain really cost?

The internet has become a huge global marketplace. Therefore, companies and freelancers can hardly do without their own website. In order for potential customers to find them easily, a meaningful domain is required. However, domain registration and management are not free. Additionally, there are significant price differences between different domain offers.

How exactly are the costs for a domain composed and how much should website owners spend on an internet address? We provide an overview.

How are domain costs composed?

The address of a website should be distinctive to the corresponding presentation. Therefore, the domain name should clearly refer to the website owner or their brand. The extension of the address can also be crucial for the success of the website.

To get an overview of the possible costs, it is important to understand how a domain is composed.

The following three components make up a complete domain and have different influences on the costs:

• Top-Level-Domain: This is the ending of the internet address. Examples of so-called TLDs include .de, .com, or .org.
• Second-Level-Domain: It contains the actual domain name. This is freely chosen and often corresponds to the brand name or the title of the web project.
• Third-Level-Domain: This area is also called a Subdomain and defines a subsection of the address. The subdomain is usually www, but it can also be determined individually.

Costs for the Top-Level-Domain

The crucial cost point of a domain arises from the choice of the Top-Level-Domain (TLD). A distinction must be made between country-specific and generic TLDs.

The allocation of country-specific domain extensions is subject to certain conditions. This often means that the web project is hosted in the corresponding country, the operator has their headquarters in the country, or at least has a registered address there. Depending on the registry, the conditions and costs can vary significantly. Some registrars even offer free domains.

To register a German TLD (.de), applicants can either contact the registration authority Denic directly or book the domain through their web hosting provider. DENIC itself charges 116 euros for the registration or transfer of a domain with subsequent one-year management. Each additional year costs 58 euros.

However, those who register their internet address through a web hoster or domain provider can expect significantly better prices. A .de domain usually costs around 3 to 10 euros per year. Many providers offer especially new customers a high discount for the first 12 months, which can be over 90%. Most web hosting packages typically even include one or more domains as free inclusive domains.

Generic domain extensions (gTLDs) like .com, .org, .shop, or .business can vary greatly in price. The new gTLDs are often much more expensive than the traditional domain variants. However, they have the advantage that the costs of purchasing an already assigned domain name can be bypassed by using a new gTLD. Depending on the extension, the costs for generic domain extensions can range between about 10 and 100 euros per year.

Tip: Find out about the most popular domain extensions that are most frequently registered.

Costs for Second-Level Domains

If the domain name is not yet taken, it does not incur any additional costs. However, it should be ensured that the choice of Second-Level Domain is not a protected trademark name for which the operator must have the appropriate rights to use.

If the domain name is already taken by another owner, there is the option to purchase it from them. The price for this sale must then be negotiated between the respective parties. Depending on the popularity of the term, the cost range can vary from a few pounds to millions.

Additional Costs

In addition to the costs for domain management, fees for registration or transfer from another provider may apply.

Furthermore, additional services such as WHOIS protection are possible. This is a service that protects WHOIS data from public view. For domains whose registrars operate within the EU, this has not been necessary since the GDPR. However, with certain generic domains, it may happen that the registry is not bound by the EU's data protection laws, allowing WHOIS data such as the address, email, and phone number of the domain owner to be queried.

When booking a domain through a web hosting provider, additional products such as web hosting packages, dedicated servers, SSL certificates, or email mailboxes can be added. The costs vary depending on the product and offer and should be compared. Also, it should not be forgotten that a domain alone cannot operate a website. Additional web hosting costs or, when using content management systems, additional WordPress web hosting costs will be incurred.

Domain Costs Overview

Here is an overview of the costs of a domain depending on the domain extension (TLD):

What Should a Domain Cost?

The appropriate cost for a domain depends heavily on the purpose of the website and the owner's budget. Private bloggers, for example, have different resources to allocate compared to operators of commercial web projects. The following three examples illustrate sensible cost models for their respective target audiences.

Freelancers

Sole traders and freelancers typically use their website as an online business card to showcase themselves and their services. The website usually includes work samples and a contact option. However, the marketing budget here is quite limited. A good option is a .de domain, which incorporates the freelancer's name and possibly an indication of their services.

For a freelance graphic designer, the domain name could be:

www.graphicdesign-mustermann.de

The cost for this domain would be around £5 to £15 per year, which is definitely a reasonable price.

Start-ups and SMEs

For small to medium-sized businesses, especially in the start-up phase, it is important to be visible. The domain name should be specific to the business or brand. In addition to the typical country code TLDs, generic options like .io, .shop, or .me are also suitable. Furthermore, it can be beneficial for a start-up to secure multiple domains. For an internationally expanding business, a mix of TLDs such as .de, .com, or .io is recommended.

The costs here can amount to around £100 to £150 per year, which represents only a very small portion of the overall marketing budget.

Large Enterprise or Corporation

Global corporations typically maintain multiple domains. Companies like Google or Amazon are accessible through numerous country-specific as well as generic domains. The selection of domains depends on the markets in which the business operates. Acquiring previously owned domains from their previous owners can also be a worthwhile investment, especially if they involve specific popular terms that can be used to position the business in the market.

Large enterprises should budget around £1,000 per year for domain management. Additional costs may include expenses for trademark rights or purchasing already registered domain names.

Conclusion: Domains don't have to cost a lot

The costs for a domain mainly depend on the choice of the top-level domain. Registering a available .co.uk domain, for example, only incurs a few pounds per year as domain costs. However, costs can quickly escalate for more specific domain extensions or purchasing already registered domain names. If a company has its sights set on a particular web address, this investment can still be worthwhile.

Our Domain Comparison can help you find the right provider and keep domain costs as low as possible: