The web hosting industry has become very competitive over the last few years. Cheaper hardware, better configuration and management software, fuelled by high demand have resulted in tremendous growth in web hosting.
So it is not surprising that some web hosting companies now give a free domain name with web hosting. How can they do this and generate profit? And more importantly, if the domain name is free with web hosting, should you take it the deal?. On this page, I shall answer these seemingly simple questions!
In the late 90s (just before the dot-com bust), there were only a few companies through which one could buy domain names. I remember registering my first one for $70 (for one year). The web hosting market was also just about starting to bloom. Getting a online identity was expensive.
However, years later, with immense competition, the prices of both domain names and web hosting have come down substantially. Even though they own the hardware (the server computers), companies still have to pay “the agencies” for the domain names and bandwidth. It’s but natural that, in order to remain profitable, they “sell” these services.
So if the companies are paying for the domain names, how can they give it for free? That’s because they build the price of the domain name in the web hosting package. On an average, domain names cost about $10 for a year and companies like www.GoDaddy.com, the largest domain name registrar, may offer a discount on this value.
Since domain names are cheap, companies give them for free and absorb the costs in the web hosting package price. After all, a $10 domain name thrown in with a hosting package will only increase its price by about $1 per month.
So is the domain name free? Yes, its just that you don’t see the cost!
Something free is always attractive, right? However, you need to keep the following in mind if you are going in for a free domain name + hosting package.
If you’re confused by all this, I suggest checking out www.GoDaddy.com. They are, and have been for some years, the largest domain name sellers in the world. They also offer super deals on domain name + web hosting packages. Click the banner below to avail the latest discount offer from the company.
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