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Originally Posted by polish_aristocrat
Ok, I know I am late with this question but I neever paid attention to it, and I am just interested in it from the business perspective.
So Dotster not only gave away free .info domains, they even registered for me .info" names that match my .com domains.
Problem is that I am sure I won't renew them, so I will either let them expire, or sell for 5 bucks, or give to a friend.
So why Dotster did this? Did they have to pay for them from their own pocket ( I know that would be a huge bulk deal, but still it would cost them some $$$ ) and now they hope, I will renew them in 1 year, or buy some additional features?
What I am missing here?
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Because it cost Dotster, and the other registrars, nothing. The free names were being offered by Afilias to all registrars. This one came from the top. Some of them passed along the free price while others just offered great discounts.
Besides the obvious renewal fees, registrars jumped at the chance to increase their client base and sell more services. Domain fowarding services, email services, hosting services, WHOIS identity protection, etc.