advice Premium domains worth it for fun?

[klarth]

I really like some of the newer gTLDs and have some ideas for domains but of course all the ones I've checked are premium and have renewal rates of up to $300 a year. I'd be using the domains for personal use and wouldn't be interested in reselling or anything, but I'm not 100% sure I can justify that cost. I see it similar to paying for hosting or a service in that it's just money that I won't be getting back.

However, I do have hope that over time the registrars might lower the rates on those domains, but I'm not sure how likely it is that rates on domains deemed as "premium" would also go down or even up. I'd definitely do it now if the cost of a premium domain went down to maybe $100 a year, but would probably stay away if it could go up and if the registrar could even take the domain back whenever they wanted. Thoughts?

 

[forge]

For fun? No way. Not only is it money you'll never get back, it's money you'll lose and that will hurt your bottom line.

There are too many options at non-premium cost. Also keep in mind, renewal time comes around awfully fast.

 

[Ategy]

Premium ngTLD's are a funny beast.

You have zero effective guarantees on their pricing. I think the one thing is they need to notify you 6 months ahead of a price increase (mandated by ACANN), but aside from that you are pretty much at their mercy.

There have already been cases of prices changing .. and sometimes the old prices are grandfathered .. but again .. no guarantees there. On the other side, if you buy a premium domain, even if they lower the price for future domains, they are under no obligation to lower your premium amount and you could be fixed at the higher price with only letting the domain expire and drop allow the domain to access the new price.

At the end of the day .. do what all end users need to do .. ask yourself if the current pricing structure is something you're happy with for your business or hobby or blog. $300 is a ton to some people, and nothing to others, so it's impossible for anyone to say if you should or should not buy it without seeing your bank statements .. lol

I wouldn't really factor potential price change into your decision .. if anything .. for the weaker ngTLD's they are going to be forced to increase their prices simply to stay alive, so chances are prices will go up rather than down if anything .. but that depends completely on the specific domain.

One thing to consider .. contact the TLD registry itself. Most of the smaller ones definitely want to grow, and they most certainly could change the premium tier/status of your domain. I wouldn't count on it ... but it doesn't hurt to ask. You could also ask them for potential promotions and suggestions on which registrars mark up their domains the smallest amount.

 

[klarth]

I wouldn't really factor potential price change into your decision .. if anything .. for the weaker ngTLD's they are going to be forced to increase their prices simply to stay alive, so chances are prices will go up rather than down if anything .. but that depends completely on the specific domain.

One thing to consider .. contact the TLD registry itself. Most of the smaller ones definitely want to grow, and they most certainly could change the premium tier/status of your domain. I wouldn't count on it ... but it doesn't hurt to ask. You could also ask them for potential promotions and suggestions on which registrars mark up their domains the smallest amount.

Didn't think of this, thanks for the response! It really sucks that it has come to this because some of the newer TLDs are pretty fun and interesting. I wouldn't mind paying a bit more up front for a lower cost, but at that point I might as well buy a pretty decent .com/.net or what have you. It's a shame, would've really liked to get into the gTLD market. Do we know if they have staying power, or is it entirely possible for them to lose money and then disappear?

 

[~ The 34 Year Buzz!!]

Fun is important; If you enjoy the experience and can afford it...

 

[Brands.International]

I really like some of the newer gTLDs and have some ideas for domains but of course all the ones I've checked are premium and have renewal rates of up to $300 a year. I'd be using the domains for personal use and wouldn't be interested in reselling or anything, but I'm not 100% sure I can justify that cost. I see it similar to paying for hosting or a service in that it's just money that I won't be getting back.

However, I do have hope that over time the registrars might lower the rates on those domains, but I'm not sure how likely it is that rates on domains deemed as "premium" would also go down or even up. I'd definitely do it now if the cost of a premium domain went down to maybe $100 a year, but would probably stay away if it could go up and if the registrar could even take the domain back whenever they wanted. Thoughts?

Yo do not need (although there is nothing bad about it) to get premium priced domain from registry. For each domain, there are tons of alternatives in new gTLD space. if you want something good, open a WLTB thread here in namepros...I have acquired dozens of good new gTLDs here, most of them from early adopters (meaning they still have standard renewal attached to them, although they are high quality names).

The thing is that in 2018, most registries know how to price their names, and they will not offer great names for few bucks...but back in time in 2014-2015 they were not so confident/knowledgeable, and early investors (many of them are here) got great names for standard renewals. So it is best to buy here - not only you can get great new gTLD name with low standard renewal, but you will also support their aftermarket and fellow domain investors So far I think I am one of the very few new gTLD investors who is actively using this option...

 

[Fancy.domains]

I have sold about 150 new gTLDs and 95% of my domains costs less than 40 dollars to renew. 85-90% is less than 25 dollars.

So you can still find the golden nuggets out there, without having to spend crazy amounts on each name...

 

[Mister Funsky]

renewal rates of up to $300 a year

If it is a name you will hold on to for a while (seems like a logical assumption based on your post) then assume a 5 year minimum for owning the domain (of course it could end up being ten, twenty or thirty depending on your heirs).

Take that money (1,500) and buy a really strong .com and you won't have to worry about some mediocre registrar jacking up the renewal fee.

 

[klarth]

Oh cool, I didn't know that the renewal was lower and would be grandfathered in. I'll look into the domain selling threads, thanks! One thing that kinda gets me though is that single character domain names are still available for some of these gTLDs and I've always wanted one, so that's what's making this decision hard for me.

 

[Bob Hawkes]

If you do decide to go for it I suggest locking in future renewal rates now and be sure to shop around as prices charged for premium vary a lot with registrar. I would also check if a service like Domain Cost Club that say they charge premium at cost handle the extension you want. You pay a membership but it might well be worth it at this rate.
Bob

 

[klarth]

@Bob Hawkes didn't know about domain cost club, looks awesome! Thanks for the suggestion!