Just a random question: how much does it cost to retain a domain name?

I know we can rent a domain name for like an year or such for $5-10 if its a unique one. After 1 year, we have to pay an increased amount for every subsequent year (which keeps on increasing i guess?)

So how does these new emerging companies ( or any company in general ) retail their domain rights? For eg paypal.com would have costed only a few bucks when first bought, but when the company got famous, its domain rent must have increase by a 1000 times. So does these big companies pay millions of dollars just to retain their domain name?

  • 3
    Basically yes
  • 5
    Registration fees are pretty much constant and set by the registry. Shorter names usually cost a whole lot but something like paypal.com should have been priced normally. I don't think big companies have different rates. First one get's the domain and as long as you pay the fee you own it. So they are likely still paying $20/yr
  • 4
    @12bitfloat While thats technically true, if the name is trademarked, the rightful trademark owner can claim it from the one who bought it.
  • 11
    Domains are a couple of bucks, depending on the TLD, but they are still cheap when bought directly from the registry. Also, the price doesn't increase.

    You only have to pay a lot if somone has already bought the domain and you want him to release it for you. People who buy attractive domains in hope of re-selling them are called "domain grabbers", and people hate these assholes.

    Even then, the only time where you have to pay lots of money is for the transfer of another domain holder to you - afterwards, it will still be only a couple of bucks annually to the registry.
  • 3
    I pay the same amount every year - but I got no reduced payment in the first year.
    It will not increase for ever (AFAIK the TLD holder forbids this).
  • 1
    oh okay. thanks everyone
  • 2
    Don't buy it from godaddy and you'll never see a price increase.

    $5-20 depending on tld, and it will stay that price always.

    The 99cent domains, usually are just to get suckers in and then they get hit with renewal fees of what ever the domain would have cost.
  • 0
    My domain hoster has usually at the end of the year special offers(additional ipv6-nets for their server, domains for 10-20% of the normal price) and they never made an higher price for their service.
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