Tucows Reduces Wholesale Domain Name Pricing

How’s this for a radical idea: Charge less for each domain, then add more services and features and then fully explain where every penny of each transaction goes. It sounds crazy, but that’s exactly what we’re doing starting today.

Here’s the full news release.

Historically at Tucows, we’ve listed two separate fees for each domain name transaction: the domain price charged by Tucows and the ICANN fee charged in addition to the price. Starting on August 25 we’ll list three line items for each new purchase, renewal or transfer: the price we’re charged by the registry, the ICANN fee, and a management fee Tucows charges on each sale.

You won’t be able to see the management fee as a separate line item in your accounts until August 25, but we’ve already implemented the new pricing structure behind the scenes. Effective today our prices are based on this new management fee model. Our new base price for a .COM name, for example, has dropped from $10.05 to $9.20:

Here’s how that price breaks down:

  • Cost of a .COM domain name, charged by the registry to Tucows: $6.00
  • ICANN fee: $0.20
  • Tucows management fee: $3.00

Total: $9.20

Wholesale .com Price Breakdown

.com, .net, .org, .info and .biz all get this cost breakdown treatment and a price drop.

As a customer, what do you get with this management fee? Quite a bit:

  • Free Name Suggestion Tool powered by DomainsBot
  • 50% of net domain parking revenue
  • The ability to sell any of hundreds of thousands of premium domain names
  • Access to a library of APIs and web-based tools for provisioning and management of domains
  • Technical support.

And starting on September 1st we’ll be adding even more value with:

  • Free WHOIS Privacy
  • Free Managed DNS

We’re sure you’ll agree that this new pricing structure provides much more clarity into where your money goes when a domain is purchased through Tucows.

26 thoughts on “Tucows Reduces Wholesale Domain Name Pricing

  1. Pingback: Global Nerdy » Blog Archive » Tucows Wholesale Domain Names Just Got Cheaper

  2. Pingback: Tucows Services » Tucows Developer Blog > Blog Archive » XCP Command #4: sw_register, Part 1

  3. Ray Powell

    I’d like to see the management fee be far less… maybe even 0. Hopefully revenues from the additional services can eventually keep TuCows where they need to be and there will be no need to profit from the act of passing a record over to the “registry”.

  4. Ashul Shah

    I think it is a great start, we have supported Tucows from 2000 and I do not mind paying the meagre management fee as it goes towards staff salaries that ultimately improve the service and value-add. Well done Tucows!

  5. frustrated reseller

    Tucows seems to be finally ‘getting it’ — it is no longer competitive in pricing and services.

    Its customer service toward wholesale resellers lags far behind competitors like godaddy.

    Hope Tucows management considers improving its services to its wholesale resellers and pricing too, promptly. This is a start. But a looooong overdue start in catching up.

  6. Chris

    “domain name suggestion tool powered by DomainsBot” = silly trinket

    “a 50% share of net domain parking advertising revenues” = i must pay for the privilege of getting 50% of revenue from something i don’t use? i really don’t understand why paying you a management fee should enable a service that generates revenue on its own

    “and the ability to sell domains from a portfolio of hundreds of thousands of premium domain names from the domain aftermarket” = again, i have to pay for something that i don’t use, and that generates you revenue anyway?

    I’m pleased about the price reduction – but as David says, it’s far far too long coming. I’ve lost so many domain registration customers to godaddy over the years it’s not funny. And your ‘transparency’ in the price breakdown is weak.. surely you provide something more valuable than the three points you listed above?

  7. Adam

    Thank you all for the comments, the feedback is greatly appreciated. Regarding our Name Suggestion and Premium Domain Name tools, we’re trying to address an issue customers have to continually wrestle with — although the number of domains registered worldwide continues to increase, the number of “good” names available is depleting.

    Also keep an eye out for free WHOIS Privacy and Managed DNS starting September 1.

    Thanks again for the feedback.

    –adam

  8. Andy Goodwin

    You get what you pay for.

    I’ve heard horror stories of GoDaddy evilness, just go to google and type ‘godaddy stole my domain’ and see what comes up. Their control panel is horrible, and it feels like a used car lot. It feels like you’re pressured into buying more of their crappy service.

    Tucows has *ALWAYS* been good to me. Rock solid.

    In the age of wal-marts and chinese toothpaste, I’d rather pay $3 per domain for a management fee then cry about it. $3 isn’t the end of my profit margin – I sell service. (for a lot more)

  9. Doug McCann

    Well said, Andy Goodwin! I’ve always been very happy with Tucows service! As important as price is to remain competitive, even more so is SERVICE. It’s not often, but when I do call for support, it’s been very productive and efficient. Our domain name sales have grown as a result of personal handling. It has also been an education in helping new and existing clients regain control of their domain names from particular registrars. Thank you Tucows!

  10. Michael Parsons

    Technical support!? Ha! Have you tried e-mailing tucows recently? You’re sure of a sarcastic reply . . . that’s if you get one at all!

  11. dahamsta

    Customer service is precisely the reason I’ve stayed with Tucows, and precisely the reason I wouldn’t go with a completely untrustworthy operation like GoDaddy. Comparing these two companies on a customer service ticket is like comparing chalk and cheese. I do not think that phrase means what you think it means.

    I’d like to see Tucows reduce their management fee too, but not if it’s at the expense of quality, and certainly not to a level of ‚Ǩ0 with the intention of recouping the costs at other points. Like the low-fares airline industry, low fees equals low quality and zero customer service, and that should be left to others.

    adam

  12. Karan Goyal

    We are all glad a price reduction did finally come in. And indeed a fact that domain privacy and DNS management is free. Godaddy charges $8.99 per year for domain privacy after the first year free, and its a pathetic task to actually renew the domain next year WITHOUT the domain privacy. I think I am transferring all my domains from godaddy back intoi Tucows.

  13. Tara

    I love that OpenSRS is finally getting on the bandwagon! However, WHERE will be make DNS modifications? I haven’t seen anything show up in the admin or in the domain manager yet.

  14. Roger

    Regarding: “Tara ‚Äî thanks for the comment. DNS still works the same as before: an order must be placed via the RWI2. We‚Äôre looking at ways to improve this process.”

    I hope you improve it because as it stands now it is really inconvenient for a couple of reasons.

    1. I hate having to give all that customer information to create a login to sell anything, especially something that is now free. It is just a pain in the hind end and is a waste of time. I can understand why you would need their login name, password and possibly email address. But why their street address, business name, phone #?

    2. The user should be able to log into their domain and select domain privacy and DNS from their screen. I hope this is going to happen.

    As a side note, I ordered managed DNS for one of my domains, but cannot see where one manages the DNS. The order is listed as completed.

    Roger

  15. Adam

    Roger — I agree it’s a pain, and we’re looking at different ways to alleviate that pain.

    When you say ‘manage’ the DNS, do you mean as a reseller or end user? Please give our support team a call or drop them a line, they will be able to help you out.

    Thanks for the comment.

    –adam

  16. James

    We use our own DNS to serve all our clients since long time ago when tucows not even think about provide DNS service, I don’t think we should now change all customers’ domain to use tucows DNS, is it possibile to deduct the management fee so my cost can be more down and compete to other domain resellers in my market ?
    Also, if it is possibile that you can create an API that can cancel the domain registered within 24 hours ( or maybe longer)? That way maybe we can provide our customers register domain first and pay within 24 hours, that will help and also lock the domain for a while in case the user browse to another site and decide not buying from you although you provide a good tools to help him find a good domain that he can register with.

  17. Aaron

    Smart move, although the management fee is high compared with other wholesale registrars out there. To be able to continue registering domains with tucows pricing will probably have to drop a bit more than this.

  18. liahona

    I’ve used 1and1.com and been satisfied with their domain registration – $7 for premium domains with free privacy. I haven’t needed support so no comment there. I’m not a reseller so maybe this doesn’t apply, but what is the value of Tucows if I can get cheaper domains elsewhere?

  19. Maui Girl

    I’ve yet to use the service from Tucows, but am interested. Everyone keeps claiming that the service at godaddy is crap. I’ve never had a bad experience with their services.

  20. transferee

    it’s not that godaddy is crappy service, it’s that they have not integrity. The blocked the domain of a registrant because myspace.com asked them to!! Illegal and lacking in integrity.

    Well ok, they are kind of crappy. I mean they have a sale on .coms but charge me $10 to renew my .com Very sleazy tactic. So no integrity and sleazy.

    Now what’s happened to referrals.tucows.com!!!!

    How do I transfer my domains? The tucows.com site seems to have gotten away from
    making things easily available. Cluttered.

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