In simplest terms, a website needs two elements, a domain name and the content pages. Both of these need to be paid for and set up (hosted) through an Internet Service Provider (ISP). Part of the setting up involves linking the domain name to its website pages.

Originally there were only two domain name types, thoses ending in either .co.uk or .com. It is generally considered that UK websites should have a .co.uk suffix, and international sites should have a .com suffix.

Now there are lots of domain endings, including:

The cost of buying and setting up a domain varies widely depending on the ISP, the web hosting company, and in the case of the International domains like those ending in .com, the exchange rate!

Then domain names need to be re-registered at intervals (usually every 2 years) to keep them secure in your name.

That is the reason there are two annual cost factors in the upkeep of a website - the renewal registration of your domain name and the hosting of the website pages.