The hard cost for a registrar to create a .COM is $7.85 plus the $0.18 variable ICANN fee. Add minimal overhead and payment processing and you get to around $8.35 and often higher.
The economics of offering a .COM for lower than this rate can only be justified by long-term economics around retention, monetizing the expiry stream, or to goose enterprise valuation from the optics of growth.
Besides the optics of growth, to make the economics work, the registrars that offer deeply discounted new registrations for .COM, for example, are mainly counting on three things:
1. They hope you will renew with them at their regular renewal rate. Registrars are generally valued in the range of $20 per domain under management (real names not crap names).
2. They hope to have enough year over year growth in new domain creates in order to allow a unit rebate from Verisign to kick in for the domains above their baseline from the prior year.
3. They hope you will drop a worthy name and allow it to go through their expiry stream where they can often pick up some additional revenue although the value here is highly variable or speculative.
To win at this game, people can simply:
1. Register domains at the cheapest, crappiest registrar that will give them a domain for peanuts.
2. Sometime long before the domain expires, transfer the keep domains to a non-crappy registrar.
As registrars go, Epik is a pretty good one. We also now offer commission-free escrow for domains at Epik. So for folks looking for a place to consolidate their keep domains, Epik is increasingly the obvious choice.
Almost no registrar provides promos for transfers. Epik did it once in Q4 2017 to reintroduce itself to NamePros. I do believe we have a superior and straight forward value proposition at $8.49 all-inclusive.