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you know that you need 70,000 USD in the bank just to be able to get accredited from ICANN? Plus a 2500 non-refundable application fee?
Plus servers, bandwidth, engineers, customer service employees, etc etc etc.
domaining is pretty cut-throat, it's definitely a volume business. Verisign charges something like 6.86 per .com you register, that's why you don't see domains for much cheaper than 7.50. That's less than a dollar per domain profit.
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