There are many reasons why some domains are cheaper than others. The most obvious reason is like with any businesses that sell the same products; they compete against each other with differentiating prices. One type of business will speculate on high volume and therefore have lower profit margins, which in turn keep their prices down. Other businesses sell themselves as exclusive and high-end providers and charge the respective prices. As stated above, some providers package their domain prices with the affiliated services such as domain and website hosting. 1&1 follows the latter of the strategies to provide you everything you need from registration to website building and hosting. Some packages offered by 1&1 even have a certain number of domains included. See for yourself! Another common reason for differentiating domain prices is the demand for domain extensions (.com, .net, .info…). The most demanded domain extension like .com would be more expensive because of the basic economic principles of supply and demand. The more demand for a domain, the less are available and the higher the price will be accordingly.
