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Home » Domain Names » Are Registrars Price Gouging Pre-Registration of New gTLDs?

Are Registrars Price Gouging Pre-Registration of New gTLDs?

Posted on January 6, 2014 Written by Bill Hartzer

Pretty soon, you’ll be able to register new domain names that have a new extension. Rather than the traditional .COM, .NET, .ORG domain extensions we are all used to in the past, you’ll be able to register a domain name like domain.luxury, domain.land, domain.bike, and even domain.cab or domain.computer. These are the new gTLDs. Here’s a list of a few of the new gTLDs that are being offered:

.bike .guru .holdings .plumbing .singles .ventures .clothing .camera .lighting .equipment .estate .graphics .gallery .photography .contractors .construction .directory .kitchen .land .today .technology .menu .sexy .tattoo

You have to buy a domain name from an approved domain name registrar, such as Dotster.com, Network Solutions, or GoDaddy. The registrars ultimately decide how much to charge to register a domain name. The Registry charges the registrars the same basic fee (sort of like a wholesale fee). Domain names (using a promotional code) can be as low as $1.99 for the first year and can be as high as $35 or more per year.

But what about these new gTLDs? How much will they cost to register a domain name on one of these new gTLDs? Well, it depends on the registrar.

Let’s take Name.com, for example. Since I know there are a lot of taxicab (taxis or cab) companies out there, and it’s pretty competitive, I decided to look up how much a “cityname.cab” domain name would be during the pre-registration period. Meaning that I can pre-register the domain name with Name.com (a registrar), and then if they are able to acquire that domain name on my behalf when the pre-registration period is over (when the domain name goes on sale), I have to pay the pre-registration price. Fine. I get that.

But shouldn’t keyword1.cab cost the same amount as keyword2.cab, just like it would be as if I bought keyword1.com or keyword2.com (if those domain names were available for registration)?

Well, that’s not the case. It depends on what domain name you want–regardless of the gTLD that you want to register. The price varies depend on the keyword! That sounds more like ‘price gouging’ or ‘unfair’ business practices to me. But again, I might be wrong on this one (I’ve been wrong before).

Let’s take a specific example.

If I want to pre-register www.Dallas.cab it will cost me $79.20 to pre-register it. Not bad, considering the fact that if you want to “backorder” a domain name at NameJet.com (a domain auction service) $69, which is reasonable.

name-gtld-dallas-cab

But what if I wanted to buy NewYork.cab? $960.00

name gtld newyork cab

Yep, that’s right. Nearly $1,000 if you want to pre-register a New York domain name.

Filed Under: Domain Names

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About Bill Hartzer

Bill Hartzer is CEO of Hartzer Consulting, LLC, an SEO Consulting firm that includes services such as search engine optimization, technical SEO audits, domain name consulting, and online reputation management.

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