Originally Posted by Westpoint
The other alternative is giving it for free for the first year. I think customers (especially end users) wouldn't transfer their domains to other registrars without good reasons.
This is how NameCheap operates, I guess it must work for them nicely. I've actually taken them up on that offer and renewed it after so yeah good for them!
Sadly NameCheap was once sued over the privacy protection so hopefully that doesn't happen again otherwise they may need to justify racking up the prices a bit to offset the risk!