The real costs of hosting a website and domain

A website is like a window display that gives customers a first glance at what your company has to offer. Building a website is therefore an important step in generating maximum buzz for your business. Of course, price is an essential point for consideration, especially for small businesses. But setting up your website doesn’t need to be complicated or expensive. There are countless options for low-price web hosting for companies on a budget.

What do you need to create a website?

The time, effort and cost it takes to set up a website really comes down to what you are willing to invest for the services you require. Before launching a website, you will need to do the following:

  1. Buy a web domain
  2. Find reliable hosting
  3. Create your website design and content

There is of course a great deal more than goes into building and setting up a website, but these three things are what you need to get started. If you are looking to keep your costs down, you may wish to start with design. Here, a website builder such as this one or WordPress may be a good option for you.

What is a web domain?

A domain name is the address at which your users will be able to access your website. Here, it is the part of the URL indicated in the address bar as “”. Domain names essentially act as stand-ins for the IP address of your website, a unique series of numbers which identify the computer server on which your website is hosted. So rather than a random string of numbers that is your website address, a domain name serves as an easy-to-remember identifier that your customers can use to access your website.

When creating a website, you want to consider a domain name that is not only easy-to-remember, but one that reflects your brand’s image. However, the perfect domain name you are imagining might already be taken or may have previously been registered. The price of buying or registering your domain name will therefore depend on whether you are buying a brand-new domain name or an aged domain. That is, a domain name that has already been registered, as well as the extension that you choose. From a price perspective, a new domain name is much cheaper. Registering a domain name can cost as little as €5.99 per year.

What’s the benefit of using an aged domain name?

Since an aged domain has already been registered, buying one can help to ensure good search engine optimisation (SEO). The age of your domain and already existing backlinks are factors that contribute to the indexing of a website by search engines such as Google. Previous owners of the domain name may have already worked to build the reputation and visibility of the website which may in turn help to give your website instant visibility. Consequently, when you buy a web domain that was previously registered, expect to pay hundreds of euros depending on the name.

In the list of most expensive domain names, consider for example that the domain name “” was sold in 2001 for a whopping $11 million. That is a huge amount to pay but it is certainly an easy-to-remember name that will speak to anyone looking to book hotel rooms online. The average price of a new web domain however is much less. Here, you can find a list of the average prices for domain names offered in Luxembourg.

Where can I buy a web domain?

You can buy a web domain from a domain registrar or even from a web hosting partner such as LuxHosting which in addition to helping you with registering your domain, offers reliable hosting at an affordable monthly cost.

1. It all starts with web hosting

There are many different options to choose from when it comes to reliable hosting.  Of course, you need to be able to find the balance between what is best and what you need. You can choose a low-price web hosting plan or a premium hosting plan depending on your budget and website requirements.

2. Let’s break down shared hosting

Shared hosting is a low-price web hosting option that allows a single physical server to host multiple websites. Since there are multiple sites operating on a single server, the cost of using the server and its resources is divided up, the result of which is a low-price web hosting plan. If your website is likely to generate a high volume of traffic, shared hosting may not be the best option for you.

3. Dedicated server hosting

With dedicated hosting, you will be leasing a server that is not shared by any other website. This means that all resources are allocated for use by your website and you can be confident that you have reliable hosting capable of handling huge surges in traffic. This premium hosting however comes at a price.

4. VPS hosting services

Virtual Private Server (VPS) hosting is another type of web hosting. Let’s call it the crossroad between shared and dedicated hosting. VPS hosting uses virtualisation technology to allocate or provide private resources on a shared server. This means that you are guaranteed at least the resources in the plan that you have paid for. It is therefore more reliable and secure than shared hosting while remaining a low-price hosting option in comparison to dedicated servers.

5. Cloud hosting

Cloud hosting is the use of virtual hardware, network and storage to deliver a scalable solution to multiple users. With cloud hosting your data is stored on numerous machines that are connected. You can then manage your data through a virtual machine that accesses the various servers across the cloud. The benefit of having these multiple servers is that if one server should fail, the others can still work to ensure continued and reliable service. The scalability and reliability of cloud hosting means that this is another premium hosting option with a price tag to match.

6. Optimised WordPress hosting

You can host a WordPress website on virtually any hosting service. However, WordPress hosting is particularly designed and optimised to meet the needs of a WordPress site and is generally an inexpensive hosting option.

Luxhosting Plans

At Luxhosting we know that not every business requires the same hosting services. That is why we offer a variety of different hosting options.

Option 1

You can purchase both web hosting and a domain. Here, you can have access to WordPress hosting or have a website from another CMS.

  • For the cheapest private label hosting options, click here.
  • For the cheapest business hosting plan, click here.
  • To see the average costs of domains, click here.

Option 2

You can purchase the website builder which comes with website building templates and free hosting. If you choose this option, you must register your domain as well.

Option 3

You already own a domain and website and just require hosting. For this option, click here.

Our various plans come with many premium hosting advantages such as an SSL certificate for website security, and the possibility to create and manage one or more email accounts with your domain name depending on your chosen plan.

Other features include the cPanel control panel which allows you to manage your website, users, domains, MySQL, and more from an easy-to-use dashboard, cloud backups, an anti-virus and anti-spam feature, and even daily statistics. These are only some of the features to take into consideration when choosing your hosting partner and evaluating the cost-effectiveness of a hosting service. Regardless of your choice, you can be certain that Luxhosting has a plan that’s suited for you.


A website domain is the address that your customers type into the address bar in order to access your website. It is unique to your business and should be representative of what it is that you have to offer. You will need to find reliable hosting capable of meeting the requirements of your website. But the cost of operating a website goes far beyond simply purchasing a domain.