Ever wonder where the Registration fee goes? Here's a break down:

[Rockefeller]

Out of the $7.99 that you pay for a .COM name:

$6.00 goes to Verisign, the central registry
$0.25 goes to ICANN, the domain name regulatory body
$0.50 goes to the credit card company (or Paypal) for transaction fees

Then add in the other costs we have of doing business:

- Software engineers to program and maintain the website, and provice customer service.
- Licensed attorney to protect customer rights, stay in compliance with registry rules, and deal with numerous domain disputes.
- Office rent.
- Insurance.
- Advertising.
- Taxes and government fees.
- Computers and hardware.


Here is an article about domain prices:

http://www.dynadot.com/resource/article/qa.html?aid=2

 

[JayB]

Thanks For Posting, Good To See The Reg Fees Go To Good Use.

Regards, JMD

 

[Theo]

I pay $7.25 - I guess I'll skip the advertising and legal.

 

[Deleted member 5660]

Out of the $7.99 that you pay for a .COM name:

$6.00 goes to Verisign, the central registry

this $6 was never competed. I believe Tucows said they could do it for under $2 but the US government has never let it go competitive. see

http://www.ntia.doc.gov/ntiahome/press/2006/icanncom_113006.htm

 

[Theo]

Instead, Verisign is waiting to get its greedy paws on the new contract's increases.

 

[Rockefeller]

Instead, Verisign is waiting to get its greedy paws on the new contract's increases.

Greedy indeed.

 

[Duckinla]

The credit card fees sound high. On an $8 domain it should be less like 16 cents. It's definitely a volume business. No variable costs, just register as many as you can and hope make more than enough to pay the bills.

I really have to question Godaddy's model. They're paying for commercials on TV to find people who will register one domain name? That makes no sense no matter how much you charged. There's really only one reason why a company like that would run TV commercials. Ego. Every CEO wants people to know the name of the company they run.

 

[Rockefeller]

The credit card fees sound high. On an $8 domain it should be less like 16 cents. It's definitely a volume business. No variable costs, just register as many as you can and hope make more than enough to pay the bills.

I really have to question Godaddy's model. They're paying for commercials on TV to find people who will register one domain name? That makes no sense no matter how much you charged. There's really only one reason why a company like that would run TV commercials. Ego. Every CEO wants people to know the name of the company they run.

Godaddy's business model is not domain names, its the services which they try to pitch with the domain name. Web hosting, Website Tonight, these types of things...

 

[Deleted member 5660]

The credit card fees sound high. On an $8 domain it should be less like 16 cents.

There is a percentage, fixed authorization fee, and transaction fee plus a fee on top of that to do everything via the web .... and then there are the chargeback fees ...

 

[sudesh]

very Greedy

 

[David G]

Credit card or paypal merchant discount fee is much less than .50c on $8 sale.

 

[Duckinla]

Bigger volume business will negotiate a deal with credit card processors. I think maybe 2% credit card fees would be right. Maybe more if only 1 domain is registered at a time. Amex is usually double but I don't know if registrars take amex.

 

[Rockefeller]

Bigger volume business will negotiate a deal with credit card processors. I think maybe 2% credit card fees would be right. Maybe more if only 1 domain is registered at a time. Amex is usually double but I don't know if registrars take amex.

You can use Amex through PP can't you?

 

[Duckinla]

You can use Amex through PP can't you?

AmEx will work deals sometimes with companies like Paypal to promote their card. In exchange, they will charge little or no processing fee to the company. If you ever go to Costco, they only take AmEx and they promote it like crazy. This is a partnership worked out between Costco and Amex. An ordinary merchant is going to pay some crazy amount like 4%+ whenever they take an AmEx card.

 

[Rockefeller]

AmEx will work deals sometimes with companies like Paypal to promote their card. In exchange, they will charge little or no processing fee to the company. If you ever go to Costco, they only take AmEx and they promote it like crazy. This is a partnership worked out between Costco and Amex. An ordinary merchant is going to pay some crazy amount like 4%+ whenever they take an AmEx card.

Yeah, and 4% is alot when you're dealing with XXX,XXX on a daily basis.

 

[simon]

i heard G pay is the next paypal killer but seems like they are taking ages to be out in the market

 

[Rockefeller]

i heard G pay is the next paypal killer but seems like they are taking ages to be out in the market

G pay? When are they supposed to come out? It seems like everything new is the next paypal killer..ie Epassporte, Storm pay, etc..none even come close.

 

[rwu]

G pay? When are they supposed to come out? It seems like everything new is the next paypal killer..ie Epassporte, Storm pay, etc..none even come close.

I assume he means Google Checkout https://checkout.google.com/

 

[Dave Zan]

I really have to question Godaddy's model.

How about Netsol's? From what Bob Parsons blogged, they're both using the
same accounting firm.

 

[Rockefeller]

I assume he means Google Checkout https://checkout.google.com/

Nice. Has anyone used it yet?