Interland Sees Gains With $7.95 Domain Pricing

Another large hosting company has hitched its growth ambitions to cheap domain pricing, and seen an immediate payoff. Interland dropped its one-year domain price to $7.95, and was rewarded with a gain of 132,147 new sites (hostnames not listed in last month's Web Server Survey).

The price cut snaped a period of mediocre growth for Interland, which had averaged just 10.3K new sites per month over the previous five months. That's considerably less than the average monthly gain of 36.7K new sites over the same period for Yahoo, one of Interland's chief competitors in the small business shared hosting market. Yahoo's numbers have strengthened since August, when it lowered its domain pricing to $9.95 per year.

Interland's move continued a trend in which leading hosting companies are using aggressive domain pricing to acquire new business. Seven of the top 20 hosting providers (as measured by hostnames) now sell domain names for $9.95 a year or less.

Retail Domain Name Prices, November 2004
Company One-year
.com price
 Primary Business  Primary Region
1&1 Internet AG $5.99 Mixed Hosting Europe
EV1Servers $6.49 Dedicated Hosting America
Hostway $6.95 Shared Hosting America
Sipence (eNom) $6.95 Domain Registrar America
AIT Domains $6.95 Mixed Hosting America
Interland $7.95 Mixed Hosting America $7.95 Mixed Hosting America
Go Daddy Inc $8.70 Domain Registrar America
Yahoo $9.95 Shared Hosting America
RegisterFly $9.99 Domain Registrar America
Netcetera $12.98 Mixed Hosting Europe
Dotster $14.95 Domain Registrar America
FastHosts/UKReg $16.48 Mixed Hosting Europe
Pipex/123Reg $16.67 Mixed Hosting Europe
Network Solutions $34.99 Domain Registrar America $35.00 Domain Registrar America

1&1 Internet, already the low price leader in the .com arena, is cutting prices to $2.99 for .name domains, offering an unlimited number of signups at that price through Dec. 21. "The .NAME promotion is intended to help our customers make a distinctive mark on the Web," said Andreas Gauger, 1&1's Chairman. "It opens new possibilities for users who want to personalize their Web presence with a particular name that may not be available on another TLD (top level domain)."

In other pricing news, eNom's Sipence business unit is selling domains directly to the public for $6.95. eNom's resellers have been its primary sales channel, leading it maintain its own retail pricing at $29.95 a year to avoid competing with its own customers.