Guest
You asked for it you got it.
As an ICANN accredited registrar, my cost currently for a CNO domain are roughly $6.25 a domain that we must pay to Verisign and ICANN. BTW, this is supposed to go up at the beginning of next year to somewhere around $6.50-$6.75.
Now this price does not include any salaries, benefits (health insurance, life, social security, FICA, and other taxes), bandwidth costs, server costs, credit card processing, charge back fees, rent, parking for employees, or other costs associated with running a business.
Since we are in the domain business, we as a registrar have determined our costs to run our business about $1.00 per domain. So I will use this as my basis for all comparisons.
So all registrars initial cost to sell a domain is as of today is roughly $7.25. This is their break even cost. If they go higher than this they are making money.
Any registrar that is selling a domain for less than this is either losing money, hoping to make the loss up with upsells (hosting/redirection, stock art, DNS/nameservers, email forwarding/pop3), has another scheme to make money (purchase x credits at $6.95, if you don't use them in a year, you are SOL), or just plain stupid.
So let's take enom, somebody mentioned that they purchased domains from enom for $6.95 a year.
1. As you can see the average cost for a domain is $7.25 a domain. So enom is probably already losing roughly 50 cents a domains with you purchasing those domains.
2. Upselling. Enom doesn't offer paid hosting, they do offer 100 email rules, and map my domain (like who is going to pay for that), they do provide free DNS, so what do they upsell, nothing!
3. Scheme. Can't find one expect for that they are not making any money.
4. Enom is supposed to be owned by some large corporation, called Syllogistics LLC, more infrormation can be found at http://www.icann.org/registrars/accreditation-qualified-list.html
So based on this information, to really make money enom has to sell domains at least at $8.60 a domain to break even.
$6.25 for the domain
$0.75 per sale per domain for credit card processing.
$1.00 per domain for salaries, etc....
$0.25 for DNS.
$0.25 for 10 page free site.
$0.10 Domain Registry of America, Domain Registry of Canada, Domain Registry of Europe.
Yeah I know the last one is wrong, but so what.... We all know who they are so why not admit it.
So the minimum cost that enom can charge and actually make one penny is $8.60 a domain. If you are getting less than $8.60 a domain, enjoy it while you can. If you are being charged more, enom is actually making money on you, so enjoy it.
That's it from me tonight.
Godaddy, is tomorrow....
Donny
As an ICANN accredited registrar, my cost currently for a CNO domain are roughly $6.25 a domain that we must pay to Verisign and ICANN. BTW, this is supposed to go up at the beginning of next year to somewhere around $6.50-$6.75.
Now this price does not include any salaries, benefits (health insurance, life, social security, FICA, and other taxes), bandwidth costs, server costs, credit card processing, charge back fees, rent, parking for employees, or other costs associated with running a business.
Since we are in the domain business, we as a registrar have determined our costs to run our business about $1.00 per domain. So I will use this as my basis for all comparisons.
So all registrars initial cost to sell a domain is as of today is roughly $7.25. This is their break even cost. If they go higher than this they are making money.
Any registrar that is selling a domain for less than this is either losing money, hoping to make the loss up with upsells (hosting/redirection, stock art, DNS/nameservers, email forwarding/pop3), has another scheme to make money (purchase x credits at $6.95, if you don't use them in a year, you are SOL), or just plain stupid.
So let's take enom, somebody mentioned that they purchased domains from enom for $6.95 a year.
1. As you can see the average cost for a domain is $7.25 a domain. So enom is probably already losing roughly 50 cents a domains with you purchasing those domains.
2. Upselling. Enom doesn't offer paid hosting, they do offer 100 email rules, and map my domain (like who is going to pay for that), they do provide free DNS, so what do they upsell, nothing!
3. Scheme. Can't find one expect for that they are not making any money.
4. Enom is supposed to be owned by some large corporation, called Syllogistics LLC, more infrormation can be found at http://www.icann.org/registrars/accreditation-qualified-list.html
So based on this information, to really make money enom has to sell domains at least at $8.60 a domain to break even.
$6.25 for the domain
$0.75 per sale per domain for credit card processing.
$1.00 per domain for salaries, etc....
$0.25 for DNS.
$0.25 for 10 page free site.
$0.10 Domain Registry of America, Domain Registry of Canada, Domain Registry of Europe.
Yeah I know the last one is wrong, but so what.... We all know who they are so why not admit it.
So the minimum cost that enom can charge and actually make one penny is $8.60 a domain. If you are getting less than $8.60 a domain, enjoy it while you can. If you are being charged more, enom is actually making money on you, so enjoy it.
That's it from me tonight.
Godaddy, is tomorrow....
Donny