Quote:
Originally Posted by Robbie
Anyway, Al is a very diligent and smart person and he does extensive research and learns everything about any enterprise he gets into. He told me that the ACTUAL cost of a domain was something crazy like 35 cents or so and even less if you bought thousands of them at a time (some companies bought every combination of 4 and 5 character domains for instance back in the day and then resold them for millions)
So anyway, I'm pretty sure that there IS a big profit margin for domain registrars. And the privacy and other stuff they sell is the gravy. Similar to the back end of a car deal (warranties, service contracts, etc. when you buy a car)
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Registrars pay Verisign and ICANN wholesale fees, which are a lot more than 35 cents. I think the wholesale rate these days is about $6.50 to NSI and 40c to ICANN, so charging $7 - 7.50 for a domain doesn't leave a lot of margin.