The Trap in Numbers
| Registrar | First Year | Renewal | % Increase |
|---|---|---|---|
| GoDaddy | $0.01 | $21.99 | 219,900% |
| IONOS | $1.00 | $20.00 | 1,900% |
| Hostinger | $2.99 | $15.99 | 435% |
| Namecheap | $6.49 | $16.98 | 162% |
How the Trap Works
1. The Bait
Advertise impossibly low prices: "$0.99 domains!" or "Domains from $0.01!" These prices are loss leadersâregistrars actually lose money on them.
2. The Lock-In
You build your website, email, and brand on that domain. Moving it becomes a hassleâDNS changes, potential downtime, email disruption.
3. The Trap
Renewal notice arrives: $21.99. By now, you've invested time and effort. Most people just pay it. Registrar wins.
4. The Squeeze
Add-ons like WHOIS privacy ($9.99/year at GoDaddy) that are free elsewhere. Your "$1 domain" now costs $32/year.
The Psychology Behind It
- Anchoring: The $0.99 price anchors your expectation. Even $15 feels like "a lot" compared to that.
- Sunk cost fallacy: You've built on this domainâyou don't want to "waste" that effort.
- Status quo bias: Transferring feels like work. Staying feels easy.
- Loss aversion: Fear of losing your domain outweighs the pain of overpaying.
How to Avoid the Trap
- 1. Always check renewal prices before buyingânot just first-year promos.
- 2. Use registrars with transparent pricingâCloudflare, Porkbun, Spaceship.
- 3. Set a calendar reminder 2 months before renewal to evaluate transferring.
- 4. Transfer out if your registrar's renewal is more than $2-3 above wholesale (~$10.44).
Honest Registrars (No Trap)
| Registrar | First Year | Renewal | Difference |
|---|---|---|---|
| Cloudflare | $10.44 | $10.44 | $0 |
| Namesilo | $11.95 | $11.95 | $0 |
| Dynadot | $11.99 | $11.99 | $0 |
| Porkbun | $10.37 | $11.06 | $0.69 |
Don't Fall For It
The cheapest domain isn't the one with the lowest first-year priceâit's the one with the lowest renewal. Over 10 years, a "$1 first year" domain at GoDaddy costs $197.92. A Cloudflare domain costs $104.40. Know the true cost.
Compare Renewal Prices â