What is the cost of Domain registration?
When you are confronted with the question as what is the cost of domain registration you as a reseller would jump and say $8.89 or $9.3.
Well that’s not the real cost.
I love the movie 3 idiot’s because there are 3 emotional idiots and 1 practical idiot (chatur ramlingam) probably why the move was called as 3 idiots.
But in the web hosting business there is another kind. These are financial idiots. And mind you; most have a B Com degree.
These financial idiots want a market share and for that they are ready to do anything because it’s a matter of proving oneself more than actual business and that’s dangerous.
A fellow called us for registering domains and reselling after which I realized it and writing this article. We on this day are selling .com for Rs. 465 and he got an offer of Rs. 350 (which is below our cost price). He wanted us to match that price because he wanted a reliable company.
For a reseller domain name registration the rate is not $8.89 but much much higher and you probably be making a loss if you have kept a thin margin.
There are the other parameters you have not considered in your costing.
1) You sell a domain for Rs. 450 a customer drops cash in your bank account in another city. ICICI bank charges Rs.100 from where the hell would you recover the amount?
2) If its an outstation cheque bank will charge Rs. 50 for clearance.
3) The credit with domain registrar is over and 8pm you realize you need funds to top up your account. You are billed by the domain registrar 5% for credit card processing.
4) You paid by credit card but your bank will charge you Foreign exchange charges and banking fees which is approx 4% additional
5) Since you bought forex credit card company will sell your dollars at a 2% margin so additional cost.
6) 2 out of 100 domains go bad where the customer goes untraceable and doesn’t pay. You have you pay that 1000 bucks from your pocket.
7) 3 in 100 orders a fellow might file for a charge back since someone used his credit card to make the transaction on your website. So you pay a fine and have to return that money plus bear the entire cost of the domain registered.
8) The dollar exchange rates keep on fluctuating so if you sell domains at a fixed price your purchase would have a margin difference of over +/- 7 bucks
9) At the end of the year there is income tax payable.
10) Accountant salary / CA charges has to be added up
11) If you have accepted payment by credit card then there are payment gateway charges of 5% per transaction
12) The Indian payment gateway company charges Rs. 2000 each year for AMC
13) If its and international payment gateway you need to pay $10 to receive a cheque
14) The dollar payout cheque by payment gateway will be cleared at the lowest possible exchange rate so 2% charge
15) That dollar cheque will take 30 calendar days for clearance and bank will charge Rs. 200 as forex processing fee.
The list goes on and on endless.
So a simple calculation as domain registrar selling price + your margin is not equal to profit.
We sell .com domain registration for Rs. 465, Net4 sells .com for Rs. 500
And there are idiots who sell .com domains for Rs. 350.
You might get tempted that the idiot is unknowingly making a big loss why not chose him… well he will someday or the other realize his mistake.. may be his dad pulls him by his ear (like how chatur was punished after his balatkari purush and staan speech) and he goes untraceable (maybe some shaddy MBA course in Australia or USA). Then what happens to your domain ?
HEHEHE
Thinking smart 
check domain avalability on our website and place order