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What's a reasonable margin to make on domain names?

What to charge clients...

     
12:20 pm on Jan 16, 2003 (gmt 0)

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I'm not set up as a domain name reseller as I don't do enough volume to warrant it. I can get pretty good rates through a discount registrar though (good service too). If I do a web site for a non-web savvy client i.e most of them, I offer to take care of the domain name registration and configuration for them.

If I register a domain name for a client, what do you think is a reasonable mark-up to add on the registration/renewal fees? Configuration time is included in the web site costing.

I think 25% is about right but would be interested in any opinions.

12:48 pm on Jan 16, 2003 (gmt 0)

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If you are registering the domain name and are also hosting the site for the client, I would say not to charge anything extra for the domain name. You can consider charging more for the hosting and making a profit there. But the domain name pricing is pretty open these days and there's hardly any money to be made there unless you are doing volumes. If you are providing the client any other service other than domain name, its better not to charge anything extra. IMHO
1:54 pm on Jan 16, 2003 (gmt 0)

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Yeah, it would be great for the pitch also. A line like "The domain name is included in my price. It is only a small expense and one-time setup for me, so I pass along as a freebie for customers."

It could help build credibility and trust.

4:25 pm on Jan 16, 2003 (gmt 0)

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I agree. The money is in reseller hosting. I use a company called CrystalTech and once you have about 10 domains hosted with them the discount is pretty deep. 30%... But I always offer to register a domain for free.

In 1995 I worked for a company that was just getting into web design and hosting and they charged $500 to register a domain name for their clients.

After about 2 years I no longer worked there but I heard through the grapevine that when their customers discovered how they had inflated the price of domain registration there was a mass exodus...

4:55 pm on Jan 16, 2003 (gmt 0)

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they charged $500 to register a domain name for their clients.

How can they charge so less ;)
7:40 pm on Jan 16, 2003 (gmt 0)

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I've always figured that if the situation comes up, there's no markup on the domain, just a charge for the work I do for them based on how much of my time it takes to do it.
7:46 pm on Jan 16, 2003 (gmt 0)

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I would still charge for the domain - $15. You can make a few dollars on that.

It helps people have a better understanding if you treat the domain seperate.

This way if there are dns or hosting issues it will sometime be easier for them to understand.

The domain has to be renewed every year - if you aren't going to be around next year - telling them there is a $15 yearly fee will make things make more sense to many in the long run.

People don't mind fees - as long as you are up front and not ripping them off.

Then again - if you are sure they will only want one domain - I can't really argue for throwing it in for free.

I just think if there is a problem down the road - if they paid for it - it will actually help avoid confusion.

Just my 2 cents.

10:54 pm on Jan 16, 2003 (gmt 0)

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Thanks for your opinions guys - I tend to agree with Chris_R but I had my mind made up already I think ;).

We are literally talking peanuts here compared to hosting but I like the idea of keeping the domain part of things separate (hopefully they don't go elsewhere but that's a good reason too..).

The Australian .com.au domains cost between 50 and 70 AUD per year so they aren't quite as easy to include in the price as a .com which are very competitvely priced here too :).

 

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