How Much Should You Pay for a Domain Name? (2024)

A domain name is your online address. It’s a home for your brand, the location of your virtual store, and one of the main places where your audience can find you. So how much should you pay for this digital real estate?

Some domain names cost thousands of dollars, while others can be claimed for free. With such a range of prices, it can be tricky to choose a domain. 

This guide covers everything to consider price-wise when registering your domain name.

What do domains cost?

On average, you can expect to pay between $10 and $20 per year to register and own a domain name. But that’s an average, and you may need to pay more to renew your domain registration for future years.

Just as real estate prices vary based on desirability, the popularity of a domain name can increase its price from a few dollars to thousands.

When you register a domain name, you’re paying for the technology and services provided by a domain registrar. These companies ensure your domain remains online and associated with the correct IP address.

What about free domains?

Some platforms, such as Shopify, offer free subdomains—a web address that sits within the primary domain. For example, when you start a store on Shopify, you’re given the subdomain “www.[storename].myshopify.com.”

Free subdomains let you get your website up and running on a budget. They’re great when you’re building, testing out an idea, or in the early stages of starting a business.

Once your site is established, however, you’ll likely want a domain that clearly identifies your business name or brand. That’s why most Shopify merchants eventually choose their own domain names for their stores.

How much should you pay for a domain?

The answer to this question is relative. A free subdomain is great for new businesses and personal sites, while a basic, competitively priced domain of less than $50 will suit the needs of most brands and website owners.

If the majority of your website traffic comes from search engines, or from visitors typing in your address, you may decide to spend more on a desirable domain name.

A domain that clearly indicates your website’s focus (like “www.plumbingadvice.com” for a plumbing tips site) can help improve a site’s search engine ranking for relevant keywords (such as, “how to unclog a kitchen sink”).

For businesses with strong brand reputations, paying more for a domain name that exactly matches their name or brand could be a smart investment. An exact-match domain makes a website easier to find and enhances brand trust. For example, the brand American Blue Jeans could decide to buy “www.americanbluejeans.com,” whatever the domain name cost, due to the potential upsides for brand visibility and credibility.

Domain prices from popular registrars

As of spring 2024, here are the average prices for an example domain name from some of the most popular domain sellers.

These prices are based on registering the domain name “bakehacks.com,” a typical .com domain that a baking-based business might choose.

Remember that domain prices can vary significantly depending on the specific domain, its TLD (.com, .ca, .co.uk), and its popularity.

GoDaddy

GoDaddy is one of the largest domain registrars in the world. If you were to register “bakehacks.com” at GoDaddy, it would cost around $21.99 per year, with a significant first-year discount.

Namecheap

Namecheap is known for its affordable prices. Registering “bakehacks.com” at Namecheap would cost around $13.98 per year, with a small first-year discount.

Bluehost

Bluehost is a web hosting company that also offers domain registration. If you registered “bakehacks.com” at Bluehost, it would start at around $12.99 per year.

Shopify

You can buy a domain name for your website directly in Shopify. Registering “bakehacks.com” at Shopify would cost around $15 per year.

Remember, these are sample prices. The price of your desired domain will be influenced by its length, TLD, popularity, and add-ons such as domain privacy protection.

Where to buy domains

There are three main places to purchase a domain name: domain registrar websites (which exist primarily to sell domains), hosting websites that offer additional domain services, and ecommerce platforms.

Domain registrars

Domain registrars are companies set up to sell domains. They offer competitive pricing, often with discounts for multi-year domain purchases, as well as additional tools and features such as privacy protection, SSL encryption, and domain acquisition support.

Popular domain registrars:

• GoDaddy
• Namecheap
• Porkbun
• Domain.com
• Dynadot
• Google Domains
• Name.com
• NameSilo
• Register.com

The most well-known domain registrar is arguably GoDaddy, known for its heavy discounts on first-year domain prices. Porkbun is another popular option with low-cost domain deals, as well as additional hosting and management tools. Namecheap mostly lives up to its name with good deals for the first year of domain ownership.

Pros

• Domain registrars are where you’ll find the best domain-specific deals.
• Some domain registrars offer brokerage services to help you negotiate with domain owners and acquire a domain name that’s already taken.

Cons

• Additional hosting and design tools may not meet industry leading standards.
• You’ll need to manually connect your domain to your hosting provider and ecommerce platform.
• First-year domain discounts can hide high renewal prices.

Web hosting sites

Web hosting providers store your website data on servers. These companies often bundle hosting services with domain name registration, making it easy to set up these two foundational elements of a website.

Popular web-hosting sites:

• Bluehost
• Hostinger
• IONOS
• Siteground
• A2 Hosting
• HostGator
• DreamHost
• InMotion Hosting

Secure website hosting is also included with every Shopify plan.

Pros

• Combining domain and hosting services can lower hosting costs.
• Some hosting companies will offer domain discounts or a free domain for the first year.

Cons

• You may have limited control of your domain and its functioning.

Website builders

Website creation platforms do it all. They let you build a website with no code, host the website, as well as buy and connect a new domain name.

Popular website builders:

• Shopify
• Wix
• WordPress
• Squarespace
• Square Online 

For ecommerce websites, Shopify provides everything needed to start and grow. All Shopify plans include a website builder, web hosting, and a free subdomain.

Pros

• Most day-to-day work happens in your website builder, so it makes sense to manage hosting and domains from the same place.
• The best website builders offer free subdomains.

Cons

• Domain prices on site builders may be higher than through domain registrars.

How is domain price calculated?

Let’s take a closer look at what influences the cost of a domain name:

Domain extension (TLD)

The letters after the final dot in your domain, known as the top-level domain, affect its price. A .com or .org TLD will likely cost more than a niche extension like .tv or .io.

While .com is the go-to choice for most businesses, a country code TLD such as .ca or .co.uk can be a helpful signal to visitors. Online stores with an international business model often purchase a variety of regional TLDs for their domain name.

Domain length and popularity

Popular domain names that are easy to remember often come with a higher price tag. The domain name cars.com is likely to be more expensive than bestusedcars.com—which will likely be more expensive than bestusedtoyotas.com.

Availability

If a domain is not available because it’s already owned by someone else, you may still be able to buy it. However, you’ll likely need to pay a higher price. This is especially true for sought after domains that attract multiple buyers, where the owner may choose to sell via an auction format.

How to get a premium domain for a good price

Getting a good deal on a domain name is reasonably straightforward. The key is to research the right domain name and provider for your needs.

Shop around

Prices for the same domain name can vary across providers, so it’s a good idea to compare prices to secure the best deal.

Take a close look at sales and promotional offers. Some registrars offer deep discounts for new customers.

Avoid unnecessarily expensive domains

There’s no need to purchase an expensive domain if it’s not required for your business. As long as your domain address represents your website, is memorable, and is easy to spell, you’re good to go. 

If you believe a premium domain name is necessary for branding or marketing purposes, then allocate funds for it in your marketing budget. Remember, you can likely deduct a portion of the cost as a business expense.

Think beyond .com

Exploring less popular domain extensions can help you secure a popular domain name at a lower price.

For instance, a .io domain could be a good fit for a tech company, while .green makes sense for an environmentally focused business. Less common top-level domains like these are often cheaper than a .com domain.

In recent years, many new TLDs have emerged, offering more variety, and more opportunities to land a short and simple address.

For example, .app domains should appeal to developers, while .blog is perfect for writers. There are also location-specific TLDs like .nyc or .london, which go beyond country code TLDs to make your business hyper local.

Consider the renewal price

When you register a domain name, you’re renting it for a certain period. When that time is up, you’ll need to renew your registration to keep your domain.

Many domain registration services offer discounts for registering a domain for multiple years. If you’re confident in your choice of domain, this can save you money while securing your domain name for a longer period.

Consider domain auctions

Domain auctions are platforms for buying and selling currently owned domain names. They can be a great place to find unique and valuable domains.

However, bidding in a domain auction is often competitive and prices can quickly escalate. If you’re considering buying a domain from an auction, set a budget and stick to it.

You can also negotiate privately for an owned domain. Domain broker services, available through many registrars, can handle negotiations for you.

Don’t overpay for your domain name

Buying a domain is an essential step in building an online presence. Domain costs can vary widely, so understanding what influences domain prices and how to get the best deal will help you make the right choice. Remember, when your business is just starting, you don’t always need to pay extra for the perfect web address.