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Companies like Netfirms and other ICANN Accredited registrars get domains at much lesser base price than the price they sell them at. No one pays from their pocket
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Actually, they do lose money when selling .coms for $4.95.
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The cost for the .com is $6 per Domain Name Year to the registry and .25 per year to ICANN.
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http://ask.metafilter.com/49208/Mate...n-domain-names
Whether they recoup that loss in subsequent years, is a matter of speculation. Their bet certainly is that they will though.
