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What are the different types of discounts?

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May 1, 2021 by
What are the different types of discounts?


For providers, discounts are incentives to maximize new sales. For customers, it is always good to pay less.

However, discounts are often subject to some conditions. Also, it exists many kinds of discounts. 

This guide features the following sections:

  1. Limitations

  2. Regular promotions

  3. Coupons

  4. Multi-year orders

  5. Volume-based account

  6. Membership-based account

1. Limitations

When you see a discount, please keep in mind that its applicability may be subject to some particular conditions.

Below are listed the most frequent limitations:

  • For new customers/new accounts

  • For a limited period

  • For a specific domain operation, e.g. a new registration, a renewal, a transfer, etc.

  • Only one reduction per customer

  • Not applicable to domains priced with a premium registration fee

  • Not applicable to volume-based/membership-based accounts

  • Not combined with other reductions

Best discounts are usually for new customers/new accounts.

Do not hesitate to opt for a new provider for some of your needs. Working with more than one provider is often convenient. For example, here are our favorite providers.
Alternatively, you could  choose creating a new account at your current provider while providing a different email address.

It exists different types of discounts. Let's review them.

2. Regular promotions

Everyone automatically benefit from such promotions.

They are initiated either by registries, by reducing their cost price, or by registrars, by reducing their markup fee or simultaneously by both registries and registrars.

When a similar promotion is available at many registrars, it is for sure at least a registry's initiative. 

So, it is often best to verify whether the promotion is not available at your regular registrars before placing your order at a new registrar. Working with 2-3 registrars is a good rule to follow; it helps to avoid maintaining domains at too many different registrars.

3. Coupons

The discount is only applied when the coupon is provided by the customer during the order process. 
Note that coupons are often valid for a limited period or for some products only, so make sure to verify that the coupon is actually accepted.

4. Multi-year orders

Multi-year orders consist of ordering a new registration or a renewal for several years in advance at once.

Such orders may be eligible to some reductions, as the extra-years added may be billed cheaper than the standard yearly registration fee. 

This discount is calculated per order, not taking into account any previous orders.

Note that multi-year orders are sometimes referred as bulk orders.

5. Volume-based account

As opposed to multi-year orders, this type of discount takes into account your previous orders.

Once you reach a given number of year/registration in your account, you can benefit from a more competitive pricing tier on your subsequent orders. Some very competitive volume-based plans requires you to provision your account with an initial deposit, e.g. $1.000 or more.

Reductions on multi-years orders and volume-based accounts are overlapping each other. As a result, registrars rarely offers both simultaneously.

6. Membership-based account

Such subscriptions allow members to benefit from reduced prices.

Some memberships allow to register domains at cost price rather than at retail price. The cost price corresponds to the wholesale price, also commonly referred as the registry fee, meaning that no markup is added ever. 

Some limitations may exist such as the quantity of domains/per year that can be registered with such reductions, as well as some extensions may be excluded.

Some subscriptions also offer a reduction on premium domains, as well as other advantages such as a dedicated account manager.

Some limitations may exist such as the quantity of domains that can be registered at cost price, as well as some extensions may be excluded from such offer.

It usually exists several levels of such plans, higher levels including more domains/per year and additional advantages.

The membership fee is often billed yearly, even when the listed pricing is monthly.

Also, any remaining unused benefits from the previous period are lost. For instance, at the time of renewing your membership plan, you registered 8 domains but the plan was sized for 10 domains. Once renewed - assuming you order the same plan -, the plan will be for 10 domains, and not 12.

What are the different types of discounts?
DomainPrice May 1, 2021
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