Why You Should (or Shouldn’t) Register Your Domain Through Your Web Host

Most web hosting companies offer a free domain for the first year, but is that a deal worth taking? I’ve used both methods in my 16 years of building websites, and while I prefer buying my domains through a separate registrar, both approaches have pros and cons. I’ll share them here to help you make the right decision for your website.

A domain is different from web hosting

Before deciding where to register your domain, it’s helpful to understand the difference between a domain and web hosting.

A domain is the name used to find your website. For example, CNET.com is the domain for CNET. ICANN, the International Corporation for Assigned Names and Numbers, regulates domains and maintains registries of all the domains on the internet. Domain registrars sell you those domains and submit the information to ICANN. Many domain registrars also offer web hosting, but the hosting and site setup tools are often more difficult to use than similar tools from dedicated web hosts.

Web hosting is the service that provides space to store website data. This data is stored on a web server, a computer configured for making data available online. Web hosting companies maintain these servers and rent space on them to clients. Many web hosting companies are also licensed domain registrars, letting them bundle domains into their hosting plans.

If you think of your site as a house, the domain is the address, and the web hosting is the structure. You need both to make your website available to the public. Unlike a house, however, you can buy the address for your site without purchasing the structure -- and vice versa.

Benefits of buying a domain through your web host

There are two main reasons to register your domain through your web host: value and convenience.

The first year of domain registration is often free

Most web hosting companies offer a free domain for the first year of hosting if you use a common domain extension like .com or .net. Some domain extensions may not be covered under your host’s free domain offer. Check the free domain policy of any hosting company you’re considering if you want to use a specialty extension like .io.

You can keep all of your hosting-related bills in one place

Buying your hosting and domain from the same company can simplify your financial management and, if you’re running a business, taxes. You may even be able to keep the payments bundled into one bill if your domain renews at the same time as your hosting.

Drawbacks of buying a domain through your web host

You may want to avoid registering your domain through your web host because of high costs, cumbersome tools and difficulty changing hosts.

Hosts often charge high rates for domains

Many hosting companies charge $20 to $30 annually for a .com domain after the free year. Domain registrars, on the other hand, often charge less than $20 per year for a .com domain.

Domain management tools can be difficult to find or use

Domain registration and management are secondary concerns for most web hosting companies. This sometimes makes the domain management tools hard to find and/or frustrating to use. 

They may not be a fully licensed domain registrar

Some web hosts are domain resellers rather than licensed domain registrars. This means they purchase a domain from a registrar on your behalf. Since they don’t work directly with ICANN, they may not be able to help you with domain registration issues.

It may be challenging to transfer your domain if you switch hosts

Some web hosts hide the tools you need to point your domain at a new web host, making it difficult to transfer your site to a new host because they want to keep you as a customer. Some users on Reddit and Trustpilot have complained about hosting companies like Hostinger hiding settings needed to properly transfer domains, delaying domain transfers or outright failing to complete them. While these stories seem to be outliers, they’re worth being aware of.

Benefits of registering a domain through a domain registrar

There are four main benefits to registering your domain through a dedicated domain registrar, including affordability, getting a domain before launching a site, polished domain management tools and ease of use.

A domain registrar may be more affordable

A domain registrar might offer a more budget-friendly option. For example, Namecheap typically charges $14.68 per year for a .com domain. This is $5 to $15 less than you’ll usually spend for each year of domain ownership with most hosting companies. These savings are insignificant if you don’t keep your website for a long time, but they can grow over time. I personally have saved around $50 in six years by registering my domains through Namecheap instead of my hosting company.

You can secure a domain before you’re ready to build a website

You may have an idea for a website or online business before you’re ready to start building a website. Buying a full web hosting package is a waste of time and money in these instances, but 30,000 domains are registered every day, and you don’t want to lose out on your ideal domain. This makes it worthwhile to register your domain right away and purchase web hosting when you’re ready to build your website.

You may benefit from better domain management tools

A dedicated domain registrar puts your domain management tools at the front and center of your account dashboard. This makes modifying DNS records and performing other domain management tasks easy.

It’s easy to point your domain at a new host

Domain registrars have no incentive to prevent you from switching web hosts, so they make it easy to find the tools you need to point your domain at a new host. By contrast, web hosting companies want you to keep paying for their full hosting services and may encourage this by making it difficult to transfer your domain.

Drawbacks of registering a domain through a domain registrar

You might want to avoid purchasing your domain through a domain registrar because it can complicate the finances of owning a site.

You’ll have to pay every year

There’s no free first year when you’re buying a domain through a domain registrar, so you’ll have to factor the initial registration fee into your startup costs when building a site. However, you can often get a discount of 50% or more for the first year of domain ownership.

You’ll have multiple hosting-related bills

Registering your domain with a separate company from your web host means you’ll have two accounts and two different bills. This can make your accounting more complicated, especially come tax time.

Should you register a domain through your web host?

Registering a domain through your web host can help you keep your finances simple and save money during the first year of operating your website. However, web hosts often charge more for domain registration than dedicated registrars, so you’ll spend more money in the long run. Domain management, especially pointing your domain at a new host, can also be more difficult when you’re working with a hosting company.

Personally, I prefer to register my domains separately. Having a separate account and bill for my domain is a minor inconvenience outweighed by the long-term savings I get from my domain registrar. I also like being able to register new domains before I’m ready to build websites for them and having one simple, central place to perform domain management tasks.

I recommend Namecheap for great domain management tools and long-term savings on .com and other popular domain extensions.