Rackshack offers $5 domain registration

[diederik]

Checkout www.rackshack.net

They offer $5 ( + 8% tax ) domain registration, which comes out to a total of $ 5.40

How can they do that ?

 

[GeorgeKGeorgeK is verified member.]

It's a marketing tool. Since most domain holders will need webhosting at some point, and they're a large webhosting company, they're hoping to convert some of them into customers of the high margin products.

If they get 100,000 domain names in 1 year, that's a loss of maybe $150,000 (depending on their wholesale cost from their supplier). They can afford it, and consider it an advertising cost.

I imagine they're hoping that BuyDomains and UltSearch or other large domain holders don't move their domains there. Could be an expensive issue then.

 

[diederik]

Yep... tricky business.
They're 'reselling' for tucows BTW.

 

[StockDoctor]

What the heck is with the "Tax" thing? I've seen some of this on foreign (non-us) regs, called a vat tax. Although they charged their country customers, I've never had to pay a tax. Is this just their way of hiding a markup?
Doc

 

[diederik]

I only know is Texas sale tax... no idea how it works though

 

[WebCat]

Originally posted by diederik
I only know is Texas sale tax... no idea how it works though

If this is true and they are charging tax because of Texas State law, then they need to put their website somewhere else!

Charging TAX on domain names?? The whole concept SUCKS!

Finally the government has found a way to TAX the internet!

 

[Anthony Ng]

It's US$5.41 after tax, to be exact. I've been registering names since yesterday. And Robert Marsh, their CEO, actually mentioned that they might need to raise that price a bit if it goes way beyond 20,000 registrations a month. In other words, it's a promo stunt with a calculated budget of at least 50,000 per month. Nevetheless, it's good for individual consumers.

 

[actnow]

Has anyone inquired with them about the tax?

 

[WebCat]

Lose the TAX! Lose the TAX!

Maybe it's time to have a "Boston Domain Party!

(NOTE for the historically-challenged: Just around the year 1775 a group of colonists protesting a tea tax imposed by King George, siezed and dumped tons of British tea into Boston Harbor!)

I hope they change this policy!
WebCat

 

[Anthony Ng]

Originally posted by WebCat
NOTE for the historically-challenged: Just around the year 1775 a group of colonists protesting a tea tax imposed by King George, siezed and dumped tons of British tea into Boston Harbor!

... and it was later dubbed the "Boston Tea Party".

 

[aguss]

I am a rackshack customer and they charge Texas tax for everything.

They are good.

Cheers
Aguss

 

[adoptabledomains]

Texas - Taxes

I never noticed before they just have the vowels switched.

 

[adoptabledomains]

I'd also be very careful about renewals. a $5 registration doesn't do much good if your renewal may be $25 and you forget or wait too long to transfer.

 

[Steen]

well.....


ev1 has business presence in almost all states of USA..

So why wouldnt they charge tax in those states?

Just my thoughts..