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  1. #1
    Join Date
    Jan 2007
    Posts
    44

    How do people offer free domains ?

    I am browsing through web hosting sites-- and I notice this one company offers a free domain with all of her plans..
    Is it just a risk that they hope they'll make their money back ?

    If I have a $3.00 hosting plan that comes with a free domain, and then they cancel after a month.. I lost money.
    So I am just wondering how people are able to do it ?
    I would love to offer this-- I just need to figure out how.

    Any input would be appreciated
    Jenny

  2. #2
    Join Date
    Aug 2002
    Location
    London, UK
    Posts
    9,037
    Yes, its a loss leader. The hope is that overall profit will come from the signup, with a small risk it wont.
    Matt Wallis
    United Communications Limited
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  3. #3
    Join Date
    Jan 2006
    Location
    Ontario, Canada
    Posts
    324
    Normally if the package is only $3 and offers a free domain you will have to signup for a long term or pay some sort of setup fee. I don't think they will let you sign up for one month, get your domain and jump to the next host (and if they do let you sign up for 1 month they will probably control your domain).

  4. #4
    get your domain and jump to the next host (and if they do let you sign up for 1 month they will probably control your domain).
    Free domains that come with hosting plans are registered under the web hosts name, and they own it. If you cancel your service 1 month later, you most likely will have to pay the registration fee to own the domain.

  5. #5
    Join Date
    May 2001
    Location
    HK
    Posts
    3,076

    Smile

    Quote Originally Posted by ShootEmUp
    I am browsing through web hosting sites-- and I notice this one company offers a free domain with all of her plans..
    Is it just a risk that they hope they'll make their money back ?

    If I have a $3.00 hosting plan that comes with a free domain, and then they cancel after a month.. I lost money.
    So I am just wondering how people are able to do it ?
    I would love to offer this-- I just need to figure out how.

    Any input would be appreciated

    People are paying us yearly instead of monthly and sometime we have promotion and that includes a domain name for free.
    We prefer yearly payment as that saves us time on tracking payments from customers.

    For others company offering a free domain with monthly service payment, I think the customer has to sign a contract while subscribing the host's service. That way if the customer is under contract and leaves, he may have to pay for a early termination fee.

  6. #6
    Join Date
    Jan 2007
    Posts
    584

  7. #7
    Join Date
    Sep 2003
    Location
    Washington, USA
    Posts
    3,219
    It's not only a loss leader, but a method by some companies to keep a hold on their clients. A lot of hosts that offer free domain names will not allow them to be transferred to another web host.
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  8. #8
    Join Date
    Jun 2006
    Posts
    405
    Well it is a loss leader like already stated. Here is another way of looking at it though.

    If you pay someone for advertising on there site for you and no one signs up then that was lost money for that expense.

    If you offer a free domain to new sign ups and they cancel after the first month you may loose the difference between what they paid and what you paid for the domain.

    4.00 plan and you pay 8.00 to register a domain name you are 4.00 in the red. If they cancel after the first month you could loose 4.00. If you offer good service and support you will most likely retain this customer. So on the third month you make profit. No lost advertising if you use free advertising to get these customers to sign up. The free domain may bring in some customers that would not normally pay attention to an add.

    One way to limit the loss is to make them sign a contract or have an early termination clause. Or you can make them pay yearly so you get your money back right away. Or you can choose a monthly plan that limits your loss example is a higher dollar plan.

    So instead of paying 100 a month for advertising put 100.00 in your domain account use some free advertising and limit the number of sign ups for that special to limit the possible loss.

    There are many ways to do this you just have to figure out what makes most sense to you and your business. Hope this helps.

  9. #9
    Join Date
    Feb 2006
    Location
    Swellyville
    Posts
    2,340

    Talking

    Quote Originally Posted by UH-Matt
    Yes, its a loss leader. The hope is that overall profit will come from the signup, with a small risk it wont.
    100% correct. When a company offers free domains, generally the plan either is priced out to include it and you don't know it, or the plan has restrictions. Any decent provider that offers a free domain, you better believe they are getting their money no doubt.
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  10. #10
    Join Date
    Feb 2005
    Location
    United Kingdom
    Posts
    3,104
    Quote Originally Posted by ShootEmUp
    If I have a $3.00 hosting plan that comes with a free domain, and then they cancel after a month.. I lost money.
    So I am just wondering how people are able to do it ?
    They do minimum contract of one/two year(s)
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