Video: Free Domain Names. Is It True ?


Do domain registrars lose money — without any benefit when they provide people with free domain names? Discover how domain registrars make money by offering free domain names.


Do domain registrars lose money without any benefit when they provide people with free domain names?

The short answer to this question is no.
If you are not paying for it, you are the product.
In this video, you are going to learn how it works for both domain names and hosting services. Welcome.

For Domain Names

1. In General

The offer of a free domain name is most of the time used by domain registrars to attract potential customers to buy their hosting service.

You buy the host, a domain name is offered.

2. To Collect User Information

The free offer could also be used to collect user information and then sell them somewhere else — for this, you should be careful, never upload your ID card in exchange for a free domain name and be sure to read the privacy policy of the registrar before the registration.

3. To Advertise And Get Their Product Advertised For Them

Also, another use case is to advertise the product by providing a limited quantity of it for free: In this case, it may appear like the registrar is losing money, but in fact it is winning: The trick is instead of spending money on advertisements, money is spent on providing a limited quantity of free domain names and then pushing people to do the advertisement for them by asking them to share the offer on social networks, forums and blogs in exchange with the free domain name.

4. Attract Targeted Users For a Better Conversion

On top of these all, some registrars’ aim with an offer like this could be to attract new targeted users for their services.

For a better conversion, they may target only people who live in rich countries, people who pay with credit card or students, etc.

People who live in rich countries, those who pay with credit card and even students, are more likely to use the service for a longer time and they may preserve the domain name for years.

For Web Hosting Services

The same thing goes for web hosting services. The services may look free, but on the long-term, they will be of great benefit to service providers.

Most of the time, free web hosting services are provided with limited resources in storage, memory, bandwidth, etc.

The goal of providing free limited resources to users is to turn them into customers by providing them the option to upgrade to a better offer at any time they feel like the free offer is not enough to run their website.

Thank you for watching.

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