How to find affordable domains?

Have you ever looked up the perfect domain name and been surprised at how expensive it is? You’re not alone. With more people and businesses moving online every day, the demand for domains has soared, and so have the prices.

The truth is, a domain name is the foundation of your online identity, but it doesn’t have to come at a premium. In this blog, we’ll explore why domain prices are on the rise and share practical tips on how you can still find the right name at the right price with WEMASY’s domain registration tool.

Why are domain prices increasing?

The online space is growing

The transition to a digital-first world has significantly increased the demand for domain names. Over 5.5 billion people are active internet users. This is almost 68 % of the global population.

With such a rising number, more businesses are looking to establish their online presence, and the number of available premium domains is shrinking. As more businesses go online, the demand for domains has increased, too.

Domain investors are increasing

Domain names are turning out to be an investment for a few. Investors purchase domains not to use them, but to flip them for profit.

Domain names having brandable names and keywords are bought at a nominal price by the domain investors. They later sell it to others for a higher price. If you are looking for a domain name that is in high demand, you will have to pay a higher price for it. This has created a speculative domain market where certain domain names can be flipped for thousands of dollars, pushing prices beyond reasonable ranges.

The registrars have increased the prices

Many domain registrars have increased the fees they charge for both new registrations and renewals. Some offer the domain names at a low price for the first year. The renewal prices have increased to a much higher level in the next year.

Some domains, particularly those with popular keyword extensions, can see price increases of 50%-100% or more after the first year. Domain owners who have already established their online presence have no choice but to pay for it. If they are on time, they can move and transfer their domain elsewhere

The prices are based on the extensions

As more businesses look for these newer extensions, their prices are also increasing. Extensions like .com were very much in demand. Nowadays, extensions like .ai, .co, and more are also in demand. Extensions like .io or .ai, for instance, have become a premium choice for companies in the tech and AI industries, making them harder to acquire at affordable rates.

The higher the demand, the higher the price. Because these extensions are now considered premium, registrars and investors alike are charging higher fees, making them harder to secure at affordable rates.

The domain registrars are hiking the renewal fees

The new strategy used by registrars to charge a low price initially and then keep a high renewal fee. Many companies lure customers in with first-year offers as low as €1–€5, only to increase renewal prices to €20–€25 or more in the following year. The customers will have no option but to pay the price that these registrars demand.

Rise of domain farmers

Domain investment is the new kind of investment people are making. Domain investors - often called domain farmers or domain trolls buy up large numbers of short, catchy, or highly brandable domains. This creates a speculative market, where the most attractive names can skyrocket in price, sometimes costing thousands of euros.

What can you do about the rise in domain prices?

While domain prices are increasing, you don’t have to overpay for the perfect name. Here are some tips to help you find an affordable domain name that still suits your business.

1. Always check the renewal pricing
Do not get attracted by the discounted price shown in the first year. There can be chances that the renewal charges could cost you twice the first-year charges. Look at the long-term cost before you commit.

2. Get creative with your domain name

Never keep only one domain name as an option. Always have a plan B and a plan C when you are making a purchase. Get creative with your brand name and see what best suits you in terms of branding and affordability.

3. Negotiate with the domain holders

If the domain name you like is already owned by another owner or an investor, try talking to them and making a deal. You may find the current domain holders quoting a reasonable price. Direct negotiations give you more control over the price and can help you avoid the inflated costs that may come with purchasing from domain resellers.

4. Check out alternative extensions

As much as .com is a universal favorite to many, it comes with a huge price tag that is huge. In that case, consider looking into alternative extensions like .co, .net, or even industry-specific extensions like .tech or .ai. Choose something that is widely accepted and can be a more affordable option without compromising your brand’s credibility.

5. Make a long-term purchase

Many registrars offer discounted rates when you register a domain for multiple years. If you are confident about the domain name you are picking, lock it for at least 3-5 years. Long-term registration ensures price stability and saves you money in the long run, helping to avoid future price increases. Along with helping you pay less, it will also save you from any price hikes during the renewal.

6. Purchase from trusted registrars and marketplaces

If you have your eye on a premium domain, check out domain auctions or marketplaces. Look for expired domains or domains that were previously owned by businesses that no longer need them. Some platforms have bids at low prices, and this can save you money.

Finding a domain name that is correct for you does not have to cost you. With WEMASY, you can pick a domain name at a fair price. We make it simple and affordable so you can get your website up and running without the high costs. So what are you waiting for? Let us assist you in choosing a domain and take your brand online soon