Recently a client had taken a similar attitude towards domain name annual renewals. As puzzling as it was for me, I had taken for granted that not everyone understands how domain names actually work! There are a number of misconceptions that I uncovered after conversations with clients and colleagues and here are some examples to help you understand why domain managers are so essential.
First, let’s cover the renewal issue. Most domain name customers buy a one year term. This is largely due to the recent low priced buy-in that many service providers like Godaddy are offering. Some extensions such as .info have been as cheap as .99 cents for a one year registration. However, when you read the fine print, you will be paying around $9 on average at renewal time per domain. This is assuming that there is a basic understanding by the customer that there exists an annual renewal. The ugly truth behind domain names is that you actually own nothing; you are “leasing” the right to use a word that represents a numerical location on the World Wide Web. This lease is due annually. Also this is not the same as a website and hosting, as many first-time domain buyers wrongly assume.
Next, the list doesn’t end at .com; everyone knows the .com extension and most people know the .net, .org, .tv and the notorious .xxx extensions, but when .biz, .info and .cc make their appearance, most people are unaware of what that means. Throw in the mix country extensions like .ca for Canada, .ru for Russia and .bz for Belize and you are usually greeted with a look of bewilderment; add to that confusion the second level .com.ru, .com.bz and the many province extensions for Canada such as .on.ca and you really see eyes glaze over. With over 200 more extensions available which have pre-requisites such as “local presence”, “local address non-contractible, ISP certificate, Trademarks, incorporation documents, apostile, local proxy agent, and a host of other country-specific requirements, then you realize that there is an element of expertise needed. What seems to be not as obvious to customers is that expertise comes at a price.
I have a difficult time with the idea that anyone could believe that someone would manage the many varied requirements, field complex e-mails from a foreign registry, (many times late at night due to the time difference) and secure local agents and process highly technical and legal documents, on the client’s behalf for no fee whatsoever?
This is until I realized that this is mainly due to ignorance. I found that many people believe that the $9 fee they paid once for the .com domain bought them also a turnkey business that required neither labor nor maintenance on their part and no further investment and a domain name that they own for life. In addition, according to one “infomercial” you are able to “make money while you sleep” on the internet. This is the reason there are those domain name stickers on the backs of vehicles that read similar to this: www.mlmschemeofthemonth.com/ignorantofdomains/preyonthisignorance/customersactualdomainnamehere. Beyond simply buying into an MLM scam, and a completely asinine URL that no-one could remember, this ignorance can be much more dangerous. For example, if you are from the US and you decide that a .ir domain sounds like a good choice, then be prepared to perhaps have a knock at your door from the US Secret Service. That is the extension for Iran and it is against US Law to engage in business transactions with any country on the US sanctioned list. The penalty is approximately 10 years in prison and fines from $100k and up. Cuba and Libya have recently moved off of this list but prior to that a .ly or .cu name could buy you more trouble than you could have imagined.
To me, this begs the question: How much is domain expertise worth now? I know from experience that expert domain managers earn their pay and are worth their weight in gold, but you can (and should) purchase their services for much, much less.
Have a question and need quick answers? 
