Is Web Hosting Getting More Expensive?

About two decades after it was first introduced to the public, the Internet is still growing steadily.

Tens of millions of new domain names are being created every year, and administrators of top-level domains, such as .com, .net, .info, .biz and .org, have to invest large sums of money to support the growth.

In order to maintain their profit margins, these organizations have to raise their domain registration and renewal rates from time to time.

 As the number of new domain name registrations continues to rise, web hosting is expected to become continually more expensive.

Increase in the Prices of Domain Names

Following an agreement with ICANN, Verisign has the right to raise .com and .net domain prices by 7 percent and 10 percent respectively every year. It has increased the .com domain price by $1.86 since the agreement.

According to Verisign, it needs more money to ensure that the Internet infrastructure will be able to meet the demands of growing Internet usage and DDoS attacks. Increasing domain prices will enable it to maintain operational stability, efficiency and security.

As a result, domain registrars will be charged higher prices, and they will pass the increased fees to their customers. Below is a list of .com domain prices offered by the leading domain registrars:

• GoDaddy - $11.17

• HostGator - $12.95

• Name.com - $10.99

• Domain.com - $9.99

• Free Parking - $11.99

• 1&1 - $7.99 (special first-year price)

Web Hosting Renewal Rate Increase

Despite the increase in domain prices, the initial rates that are charged by web hosting service providers are still relatively reasonable. However, their renewal rates are usually substantially higher than their initial rates.

Here are the renewal rates that are offered by HostGator and GoDaddy.

HostGator

HostGator offers three different web hosting plans, namely, the Hatchling, Baby and Business.

The initial price of its Hatchling plan starts at $3.96 per month, but the renewal price is $8.95 per month, which is 126 percent more expensive. Its Baby plan, on the other hand, costs $6.36 per month initially and $9.95 to renew.

Those who opt for the Business plan have to pay an initial price of $10.36 and a renewal price of $14.95.

GoDaddy

Similar to HostGator, GoDaddy also has three web hosting plans for its customers to choose from.

Its Economy plan comes with a discounted initial price of $2.99 per month, but it costs $5.99 per month to renew. As for its Deluxe plan, the initial price and renewal price are $4.49 and $8.99 per month respectively.

Choosing the Ultimate plan will set customers back $7.49 initially and $14.99 per month if they decide to renew. GoDaddy's renewal rates are all 100 percent higher than its initial rates.

Although the prices of web hosting services are rising, it is still possible for aspiring website owners to find good web hosting deals.

They can reduce their web hosting costs significantly by selecting web hosting service providers that offer coupons or special offers.