Web Hosting Talk : Web Hosting Main Forums : Domain Names : 1and1 increasing domain prices.....again!

[amagab]

It feels like it was just a short while ago that 1and1 increased their domain prices from $5.99 to $6.99. Now they are increasing them again and this time a bigger jump to $8.99

While that is still the cheapest in the industry I believe a lot of people will leave. My assumption is that most people who are with 1and1 are there because of the low prices. There are certainly a ton of other registrars and hosts that are more expensive but have better support and performance. To be honest, the low domain and hosting prices is the only reason I am with 1and1 but now I might start looking elsewhere.....if the difference in price is not that much.

Am I wrong?

[MikeDVB]

1and1 are a web host first and a domain registrar second. Just because their domains are going up does not mean that people will leave, I know of several individuals who will not leave Network Solutions ($30+ per domain) as an example.

If it's a consideration for you then that's your decision. Take $2 and divide it by 362.25... That's just over half a penny per day or 16 cents per month. I'm sure you can find that in your couch.

Best of luck.

[citricsquid]

I only use 1and1 for .co.uks, I don't know why, I just do. I've never used them for any other extension, much more expensive than the likes of godaddy and moniker.

[HostColor]

The prices of domain names went up and some hosts and web service providers are looking a way to profit from domain names or to avoid some loses. Everyone has their own policy and a way to deal with the growing business costs. I neither justify the move nor saying it is not necessary. But imagine how many customers 1&1 has and what would happen if they face a major financial loss. It is much better for consumers to pay $1 more that to see their providers to go out of the business.

[kpmedia]

I've read too many complaints to even consider 1&1 to be a viable option.

[gameforever]

In fact, I think the key that customers can be retained is the quality of service, if the quality of service allow customer satisfaction, will not have too many customers to leave, after all, just $2.

[Scorillo]

i use 1and1 for hosting and name.com for domains register. this combination worked just fine for me and i can't complain about anything.

[iHubNet-Matt]

Originally Posted by amagab

To be honest, the low domain and hosting prices is the only reason I am with 1and1 but now I might start looking elsewhere.....if the difference in price is not that much.

Am I wrong?

If your only consideration is low price there are tons of host to switch over. That means you are not bothered about quality of service and yours only requirement is cheap hosting. Regarding the domain name price increase that is up to them to decide. It seems that you are never worried about the down time and other problems related to hosting.

[Biju]

Originally Posted by MikeDVB

1and1 are a web host first and a domain registrar second. Just because their domains are going up does not mean that people will leave, I know of several individuals who will not leave NetFirms ($30+ per domain) as an example.

If it's a consideration for you then that's your decision. Take $2 and divide it by 362.25... That's just over half a penny per day or 16 cents per month. I'm sure you can find that in your couch.

Best of luck.

Its true in the same case of register.com where many people still stick with though the prices are huge compared to others.

[oliviakitty]

Originally Posted by amagab

...While that is still the cheapest in the industry I believe a lot of people will leave. My assumption is that most people who are with 1and1 are there because of the low prices...

If 1and1 has the lowest prices,
And most of their customers are just looking for the cheapest option,
Why would they leave?

[amagab]

The incentive for staying might not be as great. Since 1and1 was so much cheaper than other places I was willing to sacrifice the poor support for the low prices. However, with the difference getting less people like me might think twice before making such a sacrifice.

I did notice though that the support got better after the last price increase so hopefully it will get even better this time around as well.

[nibb]

For your information 1and1 is not the only one that raised the domain prices. Today 1 October most registrar increased their prices. This comes from Verisign and their ICANN agreement. They have started to raise prices last year and they will keep raising them every year. So its not 1and1 that is just wanting to make more profit. They are just passing the increase that is passed to them. You will see that 8.99$ is not such a bad price, most registrars are going to raise their prices as well in the next days.
Its incredible how people complain about domain prices and they are not even aware of how much a company earns with them. If 1and1 is selling their domains at 8.99$ they are earning more or less 2$ after extracting the merchant fees for receiving your payment. They are giving you a full control panel and even support for a lousy 2$ a year. That doesn't even pay the guy that has to take 10 minutes to answer you a support email. If they where giving you domains for 5.99$ they where losing money since that is what the ICANN charges. You are probably reselling domains and you should take into consideration that is doesn't get much cheaper then 8$. If you find such prices you must buy in bulk or the company is actually taking the lost for you. Most people think the companies earn the full 8$ for a domain and they only earn cents !!!!

[amex]

As others have posted, 1&1 was taking a loss on some of there domain registrations and they still are one of the cheaper registrars.

Originally Posted by MikeDVB

If it's a consideration for you then that's your decision. Take $2 and divide it by 362.25... That's just over half a penny per day or 16 cents per month. I'm sure you can find that in your couch.

While I do agree with you, if you have many domains, ex: 80 -- $2 x $80 = $160

[lal19541]

Nibb is right. I'm a GoDaddy reseller and they notified us about 2 weeks ago that our buy rates were going to be raised due to the increases.

As I've read through quite a few forums and domain related news sites, it appears that this is going to be a common thing among domain registrars.

I'd imagine some will keep their prices the same but the question is how long? Are they going to keep their prices for just a couple of months to get some new business from those people who want to leave their current registrar because they raised their price and then raise theirs shortly after?

I don't know but I'm sure that they aren't going to eat the price increase for long.

Just my 2 pennies.

[vMOT]

Originally Posted by amagab

While that is still the cheapest in the industry I believe a lot of people will leave.

Am I wrong?

I dont think that is very accurate, theres a lot of other registrars cheaper than that..

also this is a price hike from the registry, domain registrar do not have a choice but to increase their prices since their costs are going up too..