Why are domain name renewals so expensive? (Complete Answer)

When you buy a new domain name from a domain reseller/registrar, you will get a domain name with very low cost. But, when you renew domain cost is increased by 25-30%.

So, the question is,

Why are domain name renewals so expensive?

Answer of above question is divided into two sections, the first list of reasons and the second is a simple answer.

Reasons why domain name renewals so expensive:

  • Domain name service providers offer promotions fee with discount for first year domain fee.
  • Domain name fee includes technology cost, different contract fees, business expenses and profit.
  • When discount is removed from domain name renewal cost, related tax amount also increases in total fee.


Domain name renewal fee depends on different things. For example, Domain name fee includes technology cost, different contract fees, taxes, business expenses and profit.

And, if you check the domain name renewal fee (for second year, third year, and so on) is almost the same or has increased a little bit.

But, if you compare domain name first year renewal cost and second year renewal cost, then it shows you renewals are so expensive. This is because you had got a discount in the first year renewal fee.

It means, when you renew your domain name for a second or more years, you have to pay a fee without any discount, this will increase renewal fee and tax on fee, which increases cost of total renewal fee.

Domain name renewal related questions

Next, let’s check out some questions related to domain name renewal.

Can I renew my domain name with another provider?

Yes, you can renew your domain name with another provider. For that you need to transfer your domain name from the current provider to another provider.

And, this transfer process needs to be completed before the domain expiration date.

Does domain renewal price increase if the domain becomes popular?

No, domain name renewal price will not increase if your domain name becomes popular. You may get a minor price increase in renewal price with time intervals based on price related factors, but it’s not related to domain name popularity.

That’s it for now.

Hope you get helpful information from this post to know the reasons that why domain name renewals expensive.

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