Where the discount comes from
A registry sells a name to a registrar at a wholesale price. For most new extensions that price is fixed for renewals but heavily discounted for a first registration, because the registry wants names in the zone. The registrar passes part of that discount to you.
So a first year at four dollars and a renewal at thirty nine are both real prices. Neither is a bait and switch. They just describe different transactions.
What it costs over five years
Compare two extensions that look similar on a landing page.
| Extension | First year | Renewal | Five years total |
|---|---|---|---|
| .site | 4.98 | 34.00 | 140.98 |
| .com | 8.98 | 14.98 | 68.90 |
The cheaper name on day one is twice as expensive by the time the project is established.
When the cheap first year is the right call
Short lived projects genuinely benefit. A campaign microsite, a test, a conference landing page that lives for eight months: pay four dollars, let it expire, move on.
The trap is only a trap when a business builds its identity on a name it did not price for the long term.
How to decide in one minute
Ask how long the name has to survive. Under a year, take the discount. Over three years, look at the renewal column and ignore the promotional one entirely.