If somebody sold you a $100 car would you trust it for a long journey? Neither would I trust Yahoo for safeguarding my domains.. no matter what price.
That's Registration cost under their special offer, the normal cost is $9.95 http://smallbusiness.yahoo.com/domains/
If you think yahoo is so dump to loose about $4.26 at every domain to keep people happy, think again. The usage of this technique is covered by two solutions : 1. They pay your domains from their marketing budjet, which is good but one day it will end 2. They expect from you to buy another service with good profit for them, maybe the 2nd year renewal fee or anything else to get the loss from domain registration Anyway rule of thumb : Stay away from registrars with price below $6.22 (this is their cost for now)
This is what you call a 'Loss Leader'. Supermarkets and Stores sometimes do offer items are ridiculous prices to encourage people to go down to the stores and once they are there, they may be persuaded to purchase other items too. With Yahoo, since they are new in the market, they offer low prices to entice you to sign up with them and then once you use their service, they hope that you will stay with them beyond the first year so they can recover their cost and gain a customer. However, the offer is only for 1 domain name per person (if it works) so no biggy for them. It is cheaper than coming out with a million dollar advertising campaign and getting no customers. This method of marketing would create more stir. See they actually got you talking about it
Yes eddy i know however i don't like to treat domain names like cherries in the pie. These people (the one selling lower than normal) destroyed the domain reselling business once and for all I like enom for example that had the courage to keep the same marketing plan and help his resellers by seting extra high retail prices giving the advantage to the reseller to sell lower
Yes, I know it can mess things up. Personally I do not sell domain names but purchase them and I always look at what I have to pay in renewal fees before embarking on it. If it is real cheap for the first year but cost too much from what I can handle in the second year onwards, I would not bother registering. I know that the .CN domain names are being offered for under $1 for the first year but it goes up to as high as $25 on the second year. I know people may just scramble to get the domain names and once they start using it, they will be trapped paying the higher fees. Pretty much what the .info domain names are today. I guess in business, in the end, the one who is financially strong would survive in the end. However, being small is not really a disadvantage. You can always tailor your services to your niche market.
My question is very simple, Do they offer domain transfer ro other registrar during first year? Thanks!
They basically cannot stop you from transferring the domain name after the first 60 days but they can make it difficult for you to do so. There seems to be a lot of pushing back and forth since Yahoo is just a reseller for Melbourne IT. If you plan to move before the first year then it is probably not worth signing up with Yahoo just to save a few dollars. Definitely not worth the trouble.
Simple loss leader business approach. Lose on the initial aquisition cost of a customer, make it up with future renewals & upsell other stuff