Web statistics company Ipwalk announced on Thursday that domain registrar and Web hosting provider iPowerWeb has experienced considerable growth since it reduced its domain name prices last November.

After it slashed its price for a one-year domain name registration to $2.95 last November, iPowerWeb has been growing rapidly. The Web hosting provider has gone from having less than 2,000 domains names registered to signing up more than 20,000 new domain names per month.

This extreme price point is not entirely without a downside. It costs iPowerWeb approximately $6 to register a domain name, so at a price of $2.95, iPowerWeb is losing roughly $3 for every domain name registration.

Calculations by Ipwalk reveal that by maintaining its current growth rate, iPowerWeb would need to upsell an estimated 4.5 percent of its new domain names to one-year hosting packages to balance its costs. It will also earn back money when customers renew their domain names for $8.25 after one year, since the low price only applies for the first year.