Why is transferring a domain sometimes expensive?
What You're Paying For
When you transfer a domain, the new registrar typically charges a fee that covers the transfer and includes a one-year extension of your registration. This is not purely a transfer cost; it's also a renewal payment.
The fee is set by the registrar, not by ICANN, though ICANN does charge registrars a small fee per domain per year (currently $0.18 for .com). Registrars mark this up to cover their costs and profit.
- Transfer fee usually includes a one-year renewal
- Registrar sets the price, not ICANN
- Some TLDs have higher wholesale costs
Why Some Transfers Cost More
Certain TLDs, like .io or .co, have higher wholesale registry fees, so transfers cost more. Additionally, some registrars charge premium fees for transfers of expired domains or domains in redemption.
Some registrars also impose a transfer-out fee, though this is less common now. These fees are meant to discourage customers from leaving, but they can be a nuisance.
- Higher wholesale costs for certain TLDs
- Premium fees for expired or redemption domains
- Transfer-out fees at some registrars
How to Minimize Costs
Shop around for transfer specials; many registrars offer discounted transfers to attract new customers. Just be aware of the renewal price after the first year.
If you're transferring multiple domains, ask about bulk transfer discounts. Also, consider transferring only when you need to renew, so the transfer fee doubles as a renewal payment.
Common mistakes
- Assuming the transfer fee is pure profit for the registrar; it often includes a renewal.
- Overlooking the renewal price after the first year, which may be much higher.
- Not checking for transfer-out fees at the current registrar before initiating.