Google Is Now A Domain Registrar

http://news.netcraft.com/archives/2005/01/31/google_is_now_a_domain_registra
r.html

Google is now an ICANN-accredited registrar of domain names, providing it
with yet another potential line of expansion. The fast-growing search
provider is approved to sell names in seven top-level domains (TLDs)
including .com, .net, .org, .biz., info, .name and .pro.

Google's registrar status, first noted by LexText, is likely to prompt
speculation about its ambitions in web hosting and blogging. Google operates
Blogger, the free blog hosting service with a huge user base. Cheap or free
domain names could prove useful to Google in the notoriously price-sensitive
blog hosting sector, where most bloggers use subdomains (i.e.
myblog.bloghost.com) rather than full domain names (www.myblog.com).

Domain sales have also become an important tool in the business hosting
market, where domain registrations have surged in the past 18 months, even
as prices have dropped steadily. Hosting providers like Hostway, EV1Servers,
Interland and Yahoo have used cheap domains to attract hosting customers.

Those four hosting companies are not domain registrars, however. All buy
their domains from wholesalers like Tucows, Go Daddy or Melbourne IT, and
have a minimum per-domain cost, usually at least $6.50. Rather than viewing
domains as a for-profit business, these providers have approached domain
sales as a marketing cost. A recent survey by The Web Host Industry Review
found that the keyword phrase "web hosting" was selling for $7.70 per click
on Google AdWords and $9.02 on Overture. Not all of those clicks will become
new customers, either, making a $1 or $2 loss on a domain sale seem like an
affordable way to acquire a customer.

The greatest domain cost efficiencies are available to hosting companies
that are also ICANN-accredited registrars, such as 1&1 Internet of Germany,
which offers .com domains at $5.99, the lowest non-promotional price of any
major hosting provider. As a registrar, Google could have similar
flexibility to aggressively price its domain names.



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