If you’ve looked around for a web host you’ll see that the big dogs offer things like $1 Web hosting or $1 domain registration. Or maybe even 1 cent. So here is the deal. They give you that domain for 1 cent for the first year. After that first year your rate goes up to $16.99 or if your at Network Solutions $34.99 for a domain name renewal each year after that.
You think no problem, I’ll just switch hosting. If you’ve even tried to move a domain name, there is a charge for that. To move it out of a lot of hosting companies is like $25 and then trying to coordinate with their Tech Support team and the new hosting company is a total pain in the butt. They original hosting company has to give you a transfer number and that can take a few days and then you have to give that number to the new hosting company and they might charge you to set it up and that might take a few days as well.
So you hope in the meantime that number doesn’t expire or get rejected because you have to go through the whole ordeal again.
1 and 1 charged $1 per month for the first year, then $8 / month after that. That’s a big jump in price.