When starting a domain reseller business, you’ll face several important duties in order to make your business profitable so that it grows and is sustainable over time. Finding a good source of domains at the cheapest price possible is one of them, and thus be able to calculate a competitive domain price for your customers, which also brings growth to you.
When the domain registration price and renewal price have nothing in common
Looking at overall registration prices won’t be enough for your quest whenever you’re ready to move forward with your domain reseller business. Renewal price is often seen increased up to three times the registration price, giving an important reason to confirm if the renewal or transfer prices remain low as well. Other costs you certainly need to confirm are the additional fees for certain operations, or from specific registrars, as it may have its own particular terms and conditions. Why do we emphasize this? Some companies sell very cheap first-year registrations, then later charge very high prices for renewals. Besides this, it is also common to see companies that charge extra fees that are not mentioned initially in the domain offer. Some first-year .com registrations are the cheapest, indeed, but when renewal comes, the situation changes drastically. Price structure matters, and matters a lot.
Comparing domain prices
Another important step in your journey of finding the cheapest domain registration prices will be comparing prices with your competitors using as many sources as possible. Taking a look at your competitor’s prices always gives a general glimpse of the market. For example, as Domain name stats states as of November 2021, these are the top 10 .com registrars according to price:
In many cases shown in the table above, the price of domain renewal doubles or almost triples the price of the first-year registration. In the long run, this will increase the cost of keeping the domain active, and would definitely give a good lifetime value forecast for you as the provider, but most probably would increase the churn rate when your clients decide to transfer out for a better price with another provider. Apart from that, this ranking only mentions the price for registering, renewing, and transferring a .com domain, but doesn’t mention if there is any other additional fee (like the well-known ICANN fee, or processing fee many companies charge). In fact, the exercise of buying a .com domain in many of these registries shows a different price from the initial .com offer due to additional fees.
The importance of transparency in domain pricing
What about Openprovider? Comparing us to all the registrars in that list, we certainly are the only ones offering the same renewal price as the first year (ICANN fee included).
How is it possible?
As mentioned previously on our blog, and you can confirm yourself with that price comparison, we are 100% transparent with our prices. What you see is what we will charge you. No hidden fees. We assume the many costs of 178 direct registry accreditations. On top of this, we also look into all the specific terms and conditions related to domain operation’s prices and fees and negotiate directly with registries in favor of keeping our resellers’ prices as low as possible. Our aim is to be more predictable for our customers. Therefore, we do not tamper with the renewal prices and we give the same price for registrations, renewals, and transfers we get.
How does Openprovider make this promise possible?
Our memberships model enables us to guarantee you won’t pay more than our cost price for the domain extensions we’re accredited for, and will always get competitive prices on premium domains registrations. We have different types of membership plans available according to our customer’s needs, to help resellers of any size grow as big as their expectations.
Starting with the Basic Memberships, you could save even up to 6 times the price paid for the annual subscription. Moreover, you can confirm exactly how much you will save with our calculator.
In summary, the truth behind a very cheap registration price is that you will end up assuming extra costs that will increase the cost overall in the long run. Having a supplier that shows you transparency will help you have a clear vision for planning and therefore, you’ll be more efficient in generating revenue. Take this into consideration when looking for a domain provider for your reseller business.