Why are some domains so expensive? The factors influencing the domain price

expensive domains

A domain name is an address that you enter into your website’s browser address bar to access a website. For instance, “billoname.com” at the top of your screen is the domain name for this website. Registering a domain name for your business is one of the most vital steps for establishing your online presence. While some domains may cost $0.99, others may be worth millions of dollars. Just as it is essential to question why some domain names are expensive, it is also vital to ask why companies are willing to pay millions. Choosing a domain name in a digital world is as essential as selecting a location for your store in reality. In addition, domains have a crucial effect on the branding, search rankings, reliability, and overall success of your website, which is why many businesses are willing to make substantial investments. 

Why are domain names vital for your brand?

There are nearly no activities left that cannot be completed online. Anything can be done online more effortlessly and efficiently in the digital age, making a solid online presence critical for businesses. In addition, your domain name plays a crucial role in the overall image of your brand. Therefore, it is essential that your online presence from design to domain name fully represents your brand’s objectives and values. It is vital to use your online platform to leave a remarkable impression to turn each visitor into a loyal customer. The domain name is the first thing that customers will learn about your brand, so it is essential to make it clear and memorable.

Your domain name is crucial for the overall visibility of your business. It will determine your position in search rankings which can substantially affect the marketing of your brand. Even if you have a fantastic design, content, and navigation for your website, it may simply pass unnoticed by customers if your domain name is not carefully picked.

One of the first things essential to consider for better search rankings is conducting keyword research. The more effective targeted keywords you pick, the more visible your brand will become. For instance, imagine if you have an online car purchase store and you are choosing a domain name like “ajgshd.com.” Chances that people who are looking for information relevant to cars will find your website will be minimum. On the other hand, with domain names like “car.com” or any other memorable name that conveys your primary brand objective, customers will see your website pop up at the top of their search. This will give you an enormous benefit over your competitors and drive more traffic to your website, resulting in higher revenues. 

The above scenarios are the basic explanation of why companies will not hesitate to allocate huge budgets on buying highly competitive domain names. However, there are more details influencing domain costs, which you can explore further. 

What factors affect the price?

  • Domain type
  • Availability
  • Keyword inclusion
  • Renewal procedures 

Domain type

Let’s have a quick glance at the main types of domains and their price differences. 

Top Level Domains(TLD) refer to the last part of a domain name, the part that follows the dot. For instance, if you have a look at the top of your search bar, you will see “billioname. com,” where “billioname” is the name of the company and “.com” is the domain extension. 

TLDs like .com, .net, .org, and other very popular ones are more demanded, have higher trust ratings among customers than others which naturally affects their prices. 

If the primary goal of your business is to hit the global market, engaging customers from all over the world, then popular domain names will help you reach it. However, there are many alternatives. For example, if the main audience for your business is developers, you can use the .io domain extension instead of the popular .com. This is because while .io may seem utterly unfamiliar to most, it is trendy among developers and the tech world. Similarly, if you plan to create a website for a specific audience in the Netherlands, you may consider Country Code Top-Level Domains (ccTLD), which in this case would be .nl. 


The domain name you need may be available on the domain registrar, making it more affordable than if it was already owned by someone. However, if your domain name is already purchased, it is common to start negotiations with the owners. The latter option may require higher investments as many people buy domains to resell them at a higher price. You may begin to check the availability of your domain name right now. 


It is undeniable that specific keywords are highly demanded and therefore more expensive. One of the most significant domain sales in history was in 2007 when the businness.com domain name was sold for $345 million. Companies are ready to spend millions to purchase a domain with simple, precise, targeted keywords that can benefit the monetization and marketing of their brand. However, if the keywords related to your brand are already taken, it is not a reason to be discouraged. Innovative, memorable names may bring just as much success for your brand.  

Renewal procedures

Purchasing a domain is not the final step. It is essential to renew your registration contracts according to the policies of your domain name registrar. Renewing your domain name annually may cost you as much as you spend purchasing it. Obtaining extra expensive domains are exceptions. With Billioname.com you will be notified about the deadline of domain name renewal months prior. If you do not manage to renew it on time, the domain will become unavailable for you. Billioname will provide you with extra 45 days to make all the necessary payments. Meeting all of the required deadlines is essential as you may be under a severe threat to lose it. 

Where can you purchase a domain name?

Choosing a domain registrar is one of the critical decisions you will make when registering your domain name. Consider that each domain registrar platform has its own policies, which also affect the prices. Billioname offers more than 500 top-level domains, where you will be able to find exactly what you need. Keep in mind that the costs of domain names vary depending on the type of domain you choose. For instance, domain registration for .io may cost you $47, while for .net, you will need to pay $16. Of course, prices get higher for a game TLD and may reach up to $362. You may check out the prices of different domain names for better insight.


Registering a domain name will require providing personal and financial information, making privacy measures a necessity. In addition, security may result in extra costs for registering a domain but not with Billioname. Billioname guarantees security measures with WHOIS privacy service for all of the registered domains with absolutely no charge. 


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