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Before you come to launch your website, domain names probably aren’t something you’ve considered much. Think about a few of your favorite websites, and maybe you picture Google, eBay, YouTube, (and Atom).

But each of these popular sites is made up of two parts: Google.com, YouTube.com, Atom.com. Alongside the memorable, brandable domain name is something called a top-level domain, or TLD for short, also known as a domain extension.

The TLD is the last part of a domain. In the domain www.Atom.com, for example, .com is the TLD.

The TLD you choose for your domain is important because it affects how your customers perceive you. As you might expect, .com is the most trusted TLD, while other TLDs are very closely associated with particular industries, like .app and .ai, meaning that they can contribute to your branding. The .io TLD is an increasingly popular choice and something every entrepreneur should consider, particularly if you’re building a tech brand. 

eThere are a lot of TLDs to choose from – over 1500, in fact. Alongside the old favorites of .com and .org, there’s .co, .xyz, and even .pizza! But if you’ve been shopping around for a great domain name for your business, then you’ll have noticed that something stands out about .io domains compared to other TLDs that seem like a recent addition to the domains game — the price tag. So why are .io domains so expensive?

In this article, we’ll learn everything about the .io domain extension, find out if they’re a good fit for your business, and answer the question “Why are .io domains expensive”.

What is the .io Domain Extension?

The .io domain extension is a country code top-level domain assigned to the British Indian Ocean Territory. Country code TLDs (ccTLD for short) are usually designated for use by particular nations: .nl for the Netherlands, .de for Germany, and so on. The .io TLD has been around since 1997, and has the cache of being a country code, which means it’s different from, for example, .pizza or .fashion. 

Additionally, .io is a ccTLD with a difference. For one, there are no permanent inhabitants of British Indian Ocean Territory, which consists of a range of islands and atolls in the Indian Ocean administered by the British government.

That means that no matter where you’re from or who you’re targeting with your website, you can register and use .io domains. 

While .io is technically a ccTLD, it’s treated as a generic TLD (gTLD) by search engines, meaning its visibility is not limited to certain regions. If you launched a business with the .de domain extension, you would have to have an address in Germany, but .io is a ccTLD with no registration restrictions.

Who Uses .io Domains?

.io has come to be connected with the tech industry, thanks to the association with Input/Output, abbreviated to I/O or just IO. This niche computer science term has given .io a powerful branding significance.

We’re already one step towards answering the question “why are .io domains so expensive”. So let’s take a deep dive into the perception of .io and the value it offers to businesses and domain investors.

How Much do .io Domains Cost?

Whether you’re registering an unowned .io domain or purchasing a brandable .io domain on a domain marketplace, .io domains are, on average, more expensive than other new TLDs.

Registration and renewal costs for .io domains are around $40 per year, whereas other TLDs, even .com, are often more like $10 – $20. This is because the .io TLD is privately owned, despite technically being a country code TLD. As they’re such a valuable online asset and tend to be in high demand, their owner has chosen to price them accordingly.

Meanwhile, on domain marketplaces, strong single-English-word .io domains can stretch into hundreds of thousands of dollars.

That doesn’t mean all .io domains are unaffordable, and there are many .io domains available for a range of budgets. It just shows that these domains can and do command a hefty price as part of the whole brandable, premium online real estate package.

Why are .io Domains Expensive?

Domain names are virtual real estate, and just like property prices, their value is determined by a range of factors. The value of any domain is strongly influenced by the opportunity it represents to a buyer as a platform for a strong, brandable business.

Think of a domain extension like .io as part of the ‘location’ of a piece of real estate. .com extensions are the internet’s Main Street — the shopping district where casual consumers expect to stumble onto stores.

Similarly, some street addresses become inextricably associated with certain industries. 

.io is the up-and-coming part of town, where all the trendy new businesses are snapping up storefronts. It’s also the new technology district, where tech startups and gaming companies are building their brands.

Because of high demand, the price of this piece of virtual real estate is rising. A .io domain is in a trusted area that says “we’re going places”, and that’s why .io domains are “so” expensive.

The TLD gained popularity with tech companies and startups

.io has become a popular domain extension for tech companies, initially because of its association with Input/Output, abbreviated in computer science as IO. Many tech startups, often with substantial seed capital, created a high demand for the .io domain and pushed up the price for strong, brandable domains with the .io extension. From this starting point, there was a snowball effect and now .io has a close association with tech. 

Some tech companies using .io are:

• Branch.io, mobile linking and measurement platform.
• Sentry.io, app monitoring platform.
• Ovrcome.io, a VR mental health app.
• Pendo.io, product management software

It grew with browser-based games

Around 2015, a browser-based game called Agar.io became popular and created a small sub-genre of gaming called .io games. These accessible in-browser games helped to enhance the reputation of .io among coders and developers.

Some .io games are:

• Agar.io
• Slither.io
• EvoWars.io

It’s a strong status symbol with branding potential

Thanks to the adoption of the .io extension by tech companies, .io has developed an association with cutting-edge tech and innovation. Any new business building a brand around the .io extension will benefit from this perception, particularly when marketing to a tech-savvy audience.

Additionally, the .io extension offers several “domain hacks” — the technique of using an element of a domain to create a recognizable word. Brands can create domains using ‘portfol.io’, ‘stud.io’, and ‘aud.io’ to build memorable domain and brand names that integrate the .io extension in a natural way.

The politician Mark Rubio even used Rub.io as his domain during his 2016 presidential campaign.

It’s a memorable extension for customers

Customers often assume that domains end in .com, by far the most popular and recognized domain name. However, .io can be one of the more memorable alternatives, particularly for tech industry businesses and apps.

This is because these industries allow brands and apps to integrate IO into their name. For businesses existing in the digital world, name [dot] io can become your brandable business name, ensuring customers always know where to find you online.

.io is also one letter shorter than many competing domains, including .org, .com and .xyz. You might not think a single letter can make that much difference, but the average length of the top 10,000 websites is 8 letters, while for the top 500, it’s just seven!

It presents significant investment potential

Thanks to the high demand for the .io extension and the branding potential of .io domain names, the market for .io has boomed. There are over 1.2 million registered .io domain names as of December 2023, and registrations have surged by over one-third this year alone.

After .com domains, .io domains are the most investable domains. This pushes prices of strong io domains higher but also ensures that .io domains are a valuable long-term asset for any business.

Other Considerations of .io Domains

Now you have the answer to the question “why are .io domains expensive”, you might be wondering if there are any downsides to .io domains. Here are some things to consider.

• Foreign meanings: io means “I” in Italian and “something” in Esperanto. While these are pretty unobjectionable meanings, you should always consider the target audience of your business and ensure that there’s no risk of a misunderstanding when you choose a name or domain.

• Potential mistrust: while .io has been a huge hit in certain industries, it’s possible that outside of the tech world your customers may not recognize the TLD, and it could be perceived as less trustworthy than a .com extension in some sectors. That being said, it’s definitely one of the more trusted options outside of .com or .org.

• Misaligned branding: If you’re not an online game or a tech startup, building your brand on a .io domain might confuse your customers. If people arrive at bestleads.io expecting cutting-edge email marketing software, they’ll be pretty disappointed to learn you sell pencils. This could change in future, of course, as .io domains grow in popularity. The message here isn’t that you shouldn’t choose a .io domain if you’re in another sector, just that you should do further research before you make the decision. 

Where to Find Premium .io Domains

With 1.2 million .io domains currently registered compared to over 150 million .com domains, it’s still possible to find available, brandable, relatively affordable .io domains that could become your brand’s new online home.

To see if a .io domain has been registered, head to a domain registrar like Namecheap and search for the domain. The results will tell you whether you can register that domain yourself, and how much it will cost.

However, most of the strongest .io domains have already been registered. There are already around ten times as many .io domains as there are English language words, so if you’re looking to build a brand around a single, powerful word, you’ll need to search domain marketplaces for .io domains that match your brand.

Benefits of Using a Trusted Marketplace Like Atom

Atom’s Premium Domain Marketplace is made up exclusively of strong, brandable domains that, paired with the .io domain, provide a great home for your new business.

Our names are provided by our thriving community of creatives worldwide. They’re working day and night to find the best names for new businesses based on current branding trends and emotional resonance.

These names form the backbone of our curated marketplace, but not every name makes it in. Only the best names, with the strongest branding characteristics, are selected for the Premium Domain Marketplace.

This is a process you can trust and it ensures that every domain name you find at Atom can take your business to the next level.

What’s more, behind the scenes, our domain transfer experts and escrow services ensure a fuss-free, safe, and quick premium domain name purchase. When you use a trusted marketplace to buy your .io domain, you’re in safe hands.

Should You go for .io?

So, why are .io domains expensive? Because they’re proving popular in the tech and gaming industries, and they provide a professional status symbol for brands establishing themselves in these industries. They’re perceived as trustworthy and can provide an SEO boost, too. 

If you’re a business searching for a domain name, .io could be right for you. They instantly let your customers know who you are — a cutting-edge tech startup or a fun online game — and signal to your audience that you mean business.

But if you’re outside of these industries, a .io domain has the potential to confuse your customers. As it’s not yet widespread outside of tech and digital industries, if you’re launching a range of maternity products or selling online gym coaching, it might send mixed messaging in your branding.

But don’t be scared off .io altogether. Just make sure that .io aligns with your long-term branding vision. If you’re a music producer or graphic designer, the .io domain could be perfect for an aud.io or portfol.io domain hack brand.

Ultimately, .io domains are expensive for one reason: they’re worth it. For the right business, they offer the full package of credibility and brandability. Shop .io domains today.