Deep Dive · 6 min read

Domain Pricing Traps: What .com Actually Costs

February 24, 2026

Domain pricing uses a teaser-rate model: registrars advertise Year 1 prices prominently while burying renewal rates and minimum registration terms. The result is that the actual cost of owning a domain over 3 years can be double the headline price. This article explains the pricing mechanics, how to calculate true cost, and why pricing is a factor in brand name safety.

Year 1 vs. renewal pricing

The Year 1 registration price is a customer-acquisition incentive. The renewal rate — the price paid every subsequent year — is the actual ongoing cost. Common spreads:

.com — Year 1 as low as $9.99, renewal $15–$20
.io — Year 1 around $29, renewal $39–$59
.ai — Year 1 around $20, renewal $60–$80+

For budgeting purposes, the renewal rate is the number that matters. The Year 1 discount is a one-time subsidy.

Minimum registration terms

Some TLDs require multi-year initial registration. The advertised “per year” price cannot actually be purchased for just one year — the minimum checkout amount is the per-year price multiplied by the minimum term.

This is especially common with country-code TLDs repurposed for branding:

.ai (Anguilla) — typically 2-year minimum
.io (British Indian Ocean Territory) — varies by registrar
.tv (Tuvalu) — some registrars require 2+ years

These registries set their own rules independently. Multi-year minimums are a revenue strategy — the tech industry’s demand for short, brandable ccTLDs gives the issuing countries pricing leverage.

3-year total cost of ownership (TCO)

TCO normalizes pricing across TLDs and registrars. The standard formula:

3Y TCO = Year 1 price + (Renewal price × 2)

With a multi-year minimum term, adjust for the upfront commitment:

3Y TCO = (Year 1 × min years) + (Renewal × remaining years)

Example: a .ai domain at $20/yr Year 1, $80/yr renewal, 2-year minimum: $20 × 2 + $80 × 1 = $120 for 3 years — double the $60 implied by the headline price.

Brandomica’s API, MCP, and CLI return Year 1, renewal, and 3Y TCO as structured fields, allowing AI agents to factor cost into name-selection decisions automatically.

Premium and aftermarket pricing

Premium domains have inflated registration prices set by the registry (not the registrar). These are typically short, dictionary-word domains. Critically, premium pricing often applies to renewals as well — a $2,000/year premium .io costs $2,000 every year, not just the first.

Aftermarket domains (previously registered, now resold) have a one-time purchase price followed by standard renewal rates. Domain history is a risk factor here: prior use for spam or phishing can carry SEO penalties. The Wayback Machine and WHOIS history tools reveal prior usage.

TLD comparison for technology brands

.com — strongest legitimacy signal for general audiences. Moderate renewal rates. Highest aftermarket demand.
.io — developer-tool standard. Renewal rates can be steep. British Indian Ocean Territory registry.
.co — short, startup-friendly. Relatively stable pricing. Colombia registry.
.app / .dev — Google-owned. Stable pricing, HTTPS required by policy. No multi-year minimum surprises.
.ai — high demand for AI products. Anguilla registry. Volatile pricing, common multi-year minimums.

Pricing as a safety signal

Domain cost is a component of brand name safety. An “available” domain with an unsustainable renewal rate is a financial risk: if the brand eventually lets the domain lapse, someone else can register it, creating impersonation and customer-confusion problems downstream.

When AI agents evaluate brand names in a generate–verify–iterate pipeline, domain TCO is one of the structured data points they use to rank candidates alongside safety score, trademark risk, and namespace coverage.