When you buy a domain name, the money usually goes to a mix of parties: the registry that runs the extension, the registrar you bought it from, and sometimes a reseller if one was involved. In many cases, a small ICANN fee is also included in the price for gTLDs like .com.

Who gets paid

  • Registry operator: gets the wholesale fee for the domain extension.
  • Registrar: adds its own markup and handles the registration for you.
  • Reseller: may add another markup if you bought through a middleman.
  • ICANN: typically gets a small fee per year for many domain registrations.

In plain English

If you pay $12 for a .com, that is not all going to one company. Part of it covers the registry’s wholesale cost, part covers the registrar’s service and profit, and sometimes a reseller takes a cut too.

What this means for you

  • The cheapest-looking price is often just the first-year promo.
  • Renewal prices can be higher.
  • Different endings like .com, .net, or niche TLDs can cost different amounts because their wholesale fees differ.

For current domain pricing examples, one recent source says the average domain name cost is around $10–20 per year in 2026.