For a novice, one would wonder what a domain name is. Actually, in the world of the web, things are far more complicated than just mere browsing.
In order for one computer to communicate with another within the internet, each one is given a unique and sometimes unique series of numbers called the IP address. This is an Internet Protocol to ensure that the information will get through the correct computer. But because it is difficult to memorize all those 12 numbers within one IP address, this is why domains are invented, they masked those IP addresses to help the internet users remember the website they want to go and surf easily.
Now there are a lot of domain registrars out there, yes they are the one's selling these unique domains and they are governed by the central registry ICANN
Because they are governed by a central registry, one could wonder why there are registrars who would sell there domains on a higher price, when you come to think of it, all these registrars are depending on the same central registry to approve them to sell the domain to those who want it.
There are a few exemptions to this rule and 1&1 Internet is one of them. Why? simple because 1&1 offers more domain name choices at a very low price.
In fact if you buy a hosting package with 1&1, say a beginner package, you will be assured that you will get one domain name with free registration as long as your hosting package is active. Also if you opted on a higher package then you'll get more domains for free.
Domain registration prices for 1&1 depends on the kind of TLD name you would like to purchase. By the way, TLD means Top-Level Domains, this is actually the hierarchy of domains that as available for use. TLDs help differentiate the kind of website one has for a specific domain.
One would often ask, why sell these domain cheap? What is the catch?
Actually 1&1's is not only centered in selling domains. 1&1 has a wide array of products when it comes to webhosting so the company is not solely dependent on selling domains alone. 1&1's Dedicated Server products are selling like hotcakes because 1&1 has the largest datacenters amongst any other webhosting company. So this company can afford to give back to the customers some appreciation by selling cheap domains.
Since this is a webhosting company and a registrar in one, it is easier for customers in need of site to promote products, sell products, and even sites to promote one's self.