Domain name prices and hidden fees – Part 1
Buyer beware
If you have tried to register a .nz domain name you would have seen a variety of prices, charges, and fees. In this blog, we’ll explain some of the various costs and associated hidden fees.
We typically receive enquiries from consumers about being charged:
- an administrative or miscellaneous fee they think is excessive or did not agree to pay
- at different rates to what they agreed to
- for reinstating their domain name after it has expired.
How much does a new .nz domain cost?
The wholesale fee of a .nz domain name is set at $18 per year ($1.50 per month).
.nz domain name providers (also known as registrars) are approved resellers of .nz domain names and charge a range of retail fees for the registration.
Note: the Domain Name Commission publishes on a monthly basis the median retail price for .co.nz domain names (noting these figures exclude tax).
What are the hidden costs of owning a .nz domain name?
Below are a few hidden domain name costs and upsells to be aware of, so you can make the most informed decision when buying a domain name.
Save now, pay later…
Some domain name registrars offer domain name discounts on first-year purchase but their renewal costs are more expensive. Always check what ongoing costs might be associated with your registration.
You can change providers at any time, however, this can be a stressful and complicated process.
Tip: The provider must make sure enough information is readily available to you so you can verify that charges are correct and consistent with the provider’s published or contracted charges and discounts, and the product is the one you requested, used, or contracted to receive.
Website builders
Some registrars may offer free website builders for an initial period but then charge annually for the service.
To transfer, or not to transfer?
If you want to transfer away from your domain name provider, your current provider needs to let you transfer your domain name free of charge. They are not allowed to charge you to generate your UDAI or charge you an exit fee.
Tip: Before transferring your domain name, make sure that there won’t be any disruptions to any website/email address associated with your domain name.
Do you want some help with that?
Problems can arise with your online presence and .nz domain name and depending on what support your provider offers, you may have to wait a bit longer than you would like.
Some domain name providers offer a different level of customer support based on the package you have selected when registering your domain name. This may dictate things such as how long they take to respond to emails.
Tip: Compare domain name providers and the type of customer-level support you’ll get — is the support free or something you will have to pay for.
Administrative or miscellaneous charges
It’s easy to miss a payment or forget to update your details when a credit card expires or was canceled along with all the payments linked to the card.
Some providers charge fees for any missed payments. These fees should always be reasonable, so it pays to know upfront how much you could be up for in a missed payment situation.
Tip: Check your provider's terms and conditions for any administrative fees. Ideally, the fees charged should be no more than the cost incurred to the service provider. Excessive fees may be a reason for you to shop around for a better deal.