I read this question which made me realize why domains are worth around $10. Almost a year ago, I purchased a domain from Godaddy for $1. Godaddy sells.com's very cheap for the first year. How are they able to do so?

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    They take a loss on it in the hopes they can get more business from you which is much more profitable.
    – John Conde
    Commented Nov 2, 2016 at 18:00

1 Answer 1


As John Conde says, they are making a loss, and making up for it when they auto-renew your credit card. Most users do not know how to transfer a domain away from a registrar once it's registered.

Also, they are selling addon services.

It's the old adage, 'Get them in the door, then sell them everything'

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