opinion Benefits of renewing a premium domain for 2 years or more

[Robin Hablani]

I was going through the domains I bought through Godaddy Auctions more than a year ago.

I found that few of the domains that I dropped were promising because I forgot to renew them or didn't have that much confidence in doing so.

What if I had renewed them for more than 2 years and let them show their value. Anyways we're investing at least $25 on a domain through Godaddy Auctions or when buying through Marketplaces.

Investing another $15 in renewals could get us 10x to 500x more returns on our investment.

What do you think, is it a good idea?

 

[karmaco]

Why are you paying so much to renew is a better question. Two years is not a magic bullet of whether your domain is sellable or not. People have domains unsold many more years than that.

My advice is don’t bid on or reg names you don’t believe in and see value in emphatically and immediately.

Ask why should I not get this domain? Why did the last person drop it, etc. If you are iffy on it and only going to keep one year why bother.

 

[Robin Hablani]

Why are you paying so much to renew is a better question. Two years is not a magic bullet of whether your domain is sellable or not. People have domains unsold many more years than that.

My advice is don’t bid on or reg names you don’t believe in and see value in emphatically and immediately.

Ask why should I not get this domain? Why did the last person drop it, etc. If you are iffy on it and only going to keep one year why bother.

I agree with your point, but what I think is there are a lot of investors including me who start loosing confidence in a particular potential domain which still holds great value.

We think, let's move on, but if we renew it for 2 consecutive years, there is a high chance, it could SALE. Specially when you have a domain which has Godaddy Appraisal of more than $3000.

 

[DuDD]

If it is a premium domain ,I think it`s still a good choice to renew it.A good name trades for a long time
Or,you can make a broker
Altogether best wishes

 

[AEProgram]

To get a good price you might have to hold a name for 20 years, just like real estate. However, just like in real estate you cannot go and buy just any property, it must have a reasonable reason to increase.

The way to view domains is like this. You have a domain that you believe someone at some point will really like. There are people and companies out there that when they want something money is not an object. You are waiting for that person to like your name and that will take a long time most likely and if your name is not good, it will never happen.

 

[JanO]

Some buyers look up whois and hope/wait for a domain to expire.
For instance; the company Suez bought my domain suez.in for 4.5K a few days after I renewed it.
I'm 100% sure they would've bought it earlier if I had renewed it for multiple years.

 

[TheBaldOne]

First point is it depends on the domain. Is the domain name 'time sensitive', e.g. is it specific to a date say 2022 or a specific event? If so then the value of the domain might well be expected to reduce after the date or event has occurred. (Indeed this reduction might occur prior to the date or event as advertising for example might have already been booked up months in advance by advertisers.)

Second of course is the question of the value of the domain itself. To renew a domain at $10 a year for 10 years means investing today $100 in renewal fees. If the domain is truly worth $10,000 then you are investing just 1% of its value today, however, if the domain is worth $100 then you are investing 100% of its value today. Sit back and truly work out what the domain is worth to calculate the percentage investment you are likely to be making by renewing it for 10 years.

Thirdly is the very good point made by @JanO above. A potential end user might well be 'forced' into buying the domain name if it has a long renewal date rather than just have a 'wait and see' attitude as to whether the domain will just drop in the next year. Many businesses plan things years in advance therefore they can wait to see if the domain drops well before their planned usage for it.

Having said the above I should point out I have just done a multi year renewal until 2030 on my domain www.Go.LA specifically using the above process (it will help concentrate the minds of those thinking about the possibility of using the domain for the 2028 Olympics period ).

Hope this helps with your deliberations on the matter.

 

[pb]

Honestly I'm constantly amazed why top domains are only renewed for a year, every year. Imagine you have domain worth $1M that expires in March 2021 and you get in an accident today and wake up from a coma half a year from now, and the domain is gone. Or you die and your family has just one month to figure out how to get hold of the domain, as if they didn't have other stuff on their minds right now. Or you're a big company and someone forgets to pay the renewal and you lose thousands of dollars before the site gets back online.

I have my most valuable domains renewed for 10-20 years forward and I add another 10 years whenever they fall below 10y. My surname, where a good part of the family has their mailboxes, is renewed until 2040. Of course I don't do it for the bulk of my domains that are just for sale as it would be just freezing money, but the best ones are totally worth it.

 

[Future Sensors]

Agree with @pb here.

Instead of deciding whether to renew a domain each and every time on a per domain basis, it's helpful to decide which (%) domains are the most essential in your portfolio and renew those domains for a couple of additional years. This not only gives peace of mind, but also may be smart to do re VRSN price increases in the future. And it forces you to think about your whole portfolio once again in a different way - holistically.

 

[AEProgram]

Honestly I'm constantly amazed why top domains are only renewed for a year, every year. Imagine you have domain worth $1M that expires in March 2021 and you get in an accident today and wake up from a coma half a year from now, and the domain is gone. Or you die and your family has just one month to figure out how to get hold of the domain, as if they didn't have other stuff on their minds right now. Or you're a big company and someone forgets to pay the renewal and you lose thousands of dollars before the site gets back online.

I have my most valuable domains renewed for 10-20 years forward and I add another 10 years whenever they fall below 10y. My surname, where a good part of the family has their mailboxes, is renewed until 2040. Of course I don't do it for the bulk of my domains that are just for sale as it would be just freezing money, but the best ones are totally worth it.

Imagine you renew it for so long you forgot you had it, you stopped checking the email linked to it and it expires and you lose it?

I do have a good idea though. An insurance company that when you get in an accident or are sent to the hospital checks to see if you have domains expiring and they renew it.

 

[pb]

Imagine you renew it for so long you forgot you had it, you stopped checking the email linked to it and it expires and you lose it?

I do have a good idea though. An insurance company that when you get in an accident or are sent to the hospital checks to see if you have domains expiring and they renew it.

Imagine forgetting you own a $1M domain.
But in all seriousness, just set a reminder maybe.
Since the registrars only inform about expiring domains 30-60 days prior, I have todoist reminders set for the ones I want to renew x years before expiry and I (re)set them while renewing.

 

[capybara]

I add another 10 years whenever they fall below 10y.

Is it possible? I thought 10 years is max for .com and if you renew beyond that you just waste your money since the date won't go past the capped.

 

[pb]

Is it possible? I thought 10 years is max for .com and if you renew beyond that you just waste your money since the date won't go past the capped.

I think it may not be possible to renew .com beyond 10 years, but in other extensions it is.
I've even seen some domains expiring in 2099, I think they were .ng.
The ones I mentioned in the part you quoted are .pl.

[edit] for .com I would maybe renew for 10 years and then every year add another year. Or add 5 years every five years. 5 years seems like a decent margin.

 

[TauseefKhan]

Renewing domains in advance for minimum 3 years (premium ones) is a good move. Even for investors

 

[theinvestor]

In the long term renewing a domain for multiple years is a good strategy. I have found with premium domains that are registered for 2+ years that they get more inquiries. One of the reasons is there are times some people wait and hope that the domain drops. If they see it is registered for a long period of time they know it’s not worth waiting.