Domain name costs: choosing the right option for your business

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Choosing a domain name is one of the first investments you’ll make when starting a new business and building its online presence. Costs can vary based on the extension, demand for the name and whether it is being purchased for the first time or from an existing owner. 

When discussing domain costs, it’s important to understand that the domain market is becoming more competitive. Around 368 million domains were registered worldwide at the beginning of 2025, rising to nearly 387 million by the end of the year. As more businesses build their online presence, the best domain names are often snapped up quickly. Knowing what affects domain name costs can help you find an option that fits your business and your budget.

How much does a domain name cost? 

Domains are not a one-time purchase. When you ‘buy’ a domain, you’re really renting it from a domain provider. You must renew it on a fixed schedule to maintain rights to it.

There are two ways to buy a domain name, and each comes with its own pricing.

A domain that has not been registered before is available to buy at its standard annual price. The amount you pay depends on the top-level domain (TLD) you choose. Each TLD, such as .co.uk, .uk or .london, is managed by a domain registry. The registry sets the wholesale price for that extension, then registrars such as GoDaddy buy domains at that price and set the retail price customers pay. Because of this, prices for the same extension are usually similar across registrars, although introductory offers and other promotions may be available.

You can expect to pay between £0.01 and £12.99 per year for a .co.uk or .uk domain. A .london domain can reach £39.99. 

A domain that is already registered is sold by its current owner. Its price is not fixed and may be higher if the name is short, memorable or in high demand. This is why you may see such dramatic price variations across the domain marketplace.

Research a domain’s history before you buy

Before buying an expired domain or making an offer on one that’s already owned, take time to see how it has been used. Look for signs that it belonged to a reputable brand or business, rather than hosting low-quality or unrelated content. This matters most with expired domains, as their past links, search history, and reputation can affect how the domain performs after you take ownership.

A WHOIS lookup can show ownership and registration details when that information is public. You can also check domain marketplaces to see whether the name has been listed for sale and for how long. A domain that has been on the market for a while may give you more room to negotiate, but a quick history check can help you decide if it’s worth pursuing in the first place.

Choose an accredited domain registrar

Be sure to buy your domain through an accredited registrar. The Internet Corporation for Assigned Names and Numbers (ICANN) oversees the global domain name system and accredits registrars that meet its requirements for secure domain registration and management.

Choosing an ICANN-accredited registrar helps you avoid fraudulent providers and gives you more confidence that your domain will be properly managed. It’s a quick check that can save you a great deal of trouble later.

Domain extensions: classic options vs newer TLDs 

Traditional TLDs often cost less than newer ones, but many popular name combinations have already been registered. After all, .com has been around since 1985. Newer TLDs give you more options when your first-choice name isn’t available. They can also make it clearer what your business offers. For more information, learn about the differences between .com and .co.uk.

Keep in mind that price matters, but so do your audience, location and what your website needs to do. A well-chosen extension helps your domain feel more relevant to your brand.

UK-focused extensions: .co.uk and .uk 

For British businesses, a .co.uk or .uk domain can be a natural fit. These country code top-level domains (ccTLDs) are familiar to UK customers and can make it clear that your business serves a British audience. .co.uk is the most common, but .uk keeps things short and simple.

When to opt for .com

A .com domain can be a strong choice if you’re hoping to reach customers in the US, expand internationally or simply want an extension that’s recognised around the world. It isn’t tied to one country, so it gives your business room to grow beyond the UK.

You could register a .com for between £ 0.01 and £18.99 for the first year.

Already registered .com domains can cost considerably more, especially when they’re short or closely linked to a growing industry. 

Creative options 

People have been using ccTLDs to have a little fun with their domain names. 

For example, a clever physiotherapist might register bestphys.io for their web address. The .io domain extension is technically the country-code domain (ccTLD) for the British Indian Ocean Territory. But anyone may register .io domain names. 

In fact, .io is quite popular among tech startups, because "IO" is an abbreviation for input/output, which describes how computers communicate with the world. 

The same goes for .me, the ccTLD for Montenegro, and .co (Colombia) — anyone can register them. 

• .me would be a great choice for a lifestyle blogger
• .co would be great for anyone who runs a business in Colombia OR those who can't find the .com they want

Some more fun domain extensions 

• .wtf (this extension says “You have to see this!”)
• .style (great for lifestyle blogs anywhere in the UK)
• .ninja (perfect for anyone who’s good at what they do)
• .biz (a fun way to say you sell something)
• .boo (a spooky way to showcase your products and services)

Why domain prices vary so much 

New domain prices vary widely because pricing isn’t standardised across the industry – it’s shaped by a mix of registry policy, market forces, and whether you’re buying a pre-existing domain name.  

The price is driven mostly by how the extension is positioned and how much demand it attracts. Newer extensions often carry premium pricing, which is why you can get a .uk for £12.99 per year, and domain names ending in .auto are currently selling for £ 1,853.48 for the first year. 

Individual domain names also affect prices. The variation in price depends on: 

• Market demand for that specific name
• The length of the domain (shorter is generally worth more)
• Whether it contains high-value keywords
• Whether there’s an existing high-traffic website linked to it (since traffic tends to follow the domain when it changes hands)

Premium domain names 

Premium domain names are domains that registries or current owners have identified as having exceptional market value — usually because they're short, memorable, keyword-rich, or already established. Unlike standard registrations, premium domains come with higher initial purchase prices and, in some cases, higher renewal fees set by the registry. 

Because pricing depends on current demand, premium domain names can range anywhere from 3-figures to 7-figures. Costs come down to perceived value, market conditions, and negotiation between buyer and seller, rather than a fixed rate. 

Auctions and aftermarket sales 

You can also buy preexisting domain names that current owners are reselling, typically through auction. These tend to be the most expensive domains available, since they're sold through auction houses, aftermarket services, or private sellers rather than at standard registry rates. 

There are no fixed prices in this market. Buying and selling domains is its own business, and prices vary widely based on what a buyer is willing to pay. The only way to gauge cost is to check marketplaces like Afternic or GoDaddy Auctions directly. 

Expired domains

Expired domains are domain names that were registered in the past but are no longer active because their previous owner did not renew them. They may still carry value from their earlier use, including existing links and a history with search engines.

Because of that, expired domains can cost more than a brand-new standard domain, but usually less than a premium domain. They can be a good option for businesses that want an established name without paying premium-level prices.

What makes a good domain name?

First and foremost, a good domain name should be easy for people to remember. For the rest of your domain (i.e. what goes on the other side of the dot), it may be easier to point out what you should avoid:

• Don’t make it too long. You don’t want people having to Google your business (“fish and chips on Greenwich”) because they can’t remember your looong web address.
• Avoid hyphens and numbers. They are complicated to remember — no one ever puts them in the right place.
• Don’t stray too far from your brand. When your audience thinks about your business, you want them to instantly recall your web address. Don’t make them think too hard.

Domain strategy by business type

The right domain strategy depends on what you’re building. For a hobby project, the lowest-cost available option can be enough if you’re not relying on the site to bring in regular traffic or rank highly in search results. Freelancers and personal brands may benefit from including their own name in the domain, since the name is a key part of what clients and customers are looking for.

Startups often have more to protect. Registering a few relevant domain names can give your brand more visibility and help keep close variations out of competitors’ hands. For tech startups, that may mean securing .io and .app alongside .com. It might be more costly when you start, but it saves on domain brokerage and auction fees in the future!

Established businesses may want to take this further by registering the relevant extensions and variations of their brand name, even if it means buying a domain that has already been registered. It’s a practical way to protect your brand as it grows.

Registering personal name domains

A domain that matches your name gives you a simple home for your professional presence online. You can use it to share your work, portfolio, CV or blog, all in one place that’s easy for people to find and remember.

This can be especially useful for freelancers, job seekers and professionals building a personal brand. It gives you more control over how you show up online and helps prevent someone else from registering your exact name first.

If your name is already registered, try finding an alternative - K or Kat instead of Katie, or even use your middle name or a nickname! It’s not worth spending thousands when you’re just starting out. 

What if my preferred domain name is already taken?

Finding out that someone has already registered the name you want doesn’t mean you’re out of options. You can either choose a different extension or try to buy the domain from its current owner.

Start by checking the domain’s history and looking for signs that it has been listed for sale for some time. A WHOIS lookup can show registration details when they are public, while domain marketplaces may show whether the name is available to buy. If the domain has been sitting unsold for a while, its owner may be more open to negotiating.

When you make an offer, start with an amount you’d be comfortable increasing later. Keep your maximum budget in mind, but don’t reveal it straight away. It also helps to be prepared to walk away. Sellers may come back with a better offer when they know you have other options.

For a higher-priced domain, ask whether the owner would consider a payment plan. Some sellers are happy to spread the cost over several months or years, which can make a valuable domain more manageable for your business.

You can handle the process yourself, but a domain broker can be helpful when the deal is more complex. Brokers charge a fee, but they bring negotiation experience and can help with the legal and technical details of transferring the domain safely.

Wrapping up 

A new business, a rebrand or a growing side project all come with plenty of domain name options. An available domain is usually the most affordable choice upfront, especially if you’re working with a smaller budget. If your ideal name has already been registered, though, it can still be worth considering the cost of buying it.

Think about what that domain would add to your business. A short, memorable name can make it easier for customers to find and remember you. An established domain may also have useful history, such as relevant links or traffic, while securing your brand name can stop someone else from using it.

It can also make sense to register more than one domain at the same time. Many registrars offer discounts for bulk purchases, which can help when you want to secure extensions such as .com, .co.uk and .uk for your brand across different markets. Some providers may also include extras, such as domain privacy or hosting, making a bulk purchase even better value.

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