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Google Becomes Accredited Registrar.
2005-02-01, HostMan.biz Google (google.com) is now an ICANN-accredited registrar, approved to sell seven top-level domains, according to research and analysis firm Netcraft (netcraft.com). The company is approved to sell .com, .net, .org, .biz., info, .name and .pro domains. Google's new status is fueling new speculation that the search giant is looking to move into Web hosting. Google already operates a free blogger service, and the huge user base would be a potentially lucrative market for domain names and Web hosting. Over the last year, Web hosts have drastically reduced prices on domain names, using them as loss leaders to attract hosting customers. Four of the industry's leaders – Hostway (hostway.com), EV1Servers (ev1servers.net), Yahoo! (yahoo.com), Interland (interland.com) – are selling domains in the six to 8 dollar range, but as Netcraft notes, none are accredited registrars. Instead, these companies buy their domains from suppliers such as Tucows (tucows.com) and Go Daddy (godaddy.com), which wholesale domains for an approximate minimum price of $6.50. With prices as low as they are, domains names have, in many cases, become a losing financial proposition, but are seen as a cheap and effective way to attract hosting customers. Netcraft contrasts the one- or two-dollar loss on a domain, versus the pay-per-click cost of buying the keyword "web hosting" on Google Adwords or Overture, which can run three to four times higher. Companies such as 1&1 Internet (oneandone.co.uk), that are also accredited registrars, are in a position to reap high cost efficiencies, says Netcraft, making it possible that Google could pursue a simlar strategy, pricing its domain names aggressively in order to make headway into the hosting market. |
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