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question 3 letter .xyz domain and outrageous renewal fees. What would you do?

Catch.Club Catch.Club
I paid a few hundreds bucks to privately acquire a 3 letter, dictionary listed .xyz domain. The annual renewal reg fee is $1,000. I haven't had it for long, and although I've had two or three of inquires via DAN.com, they were the typical extreme low-ball type of offers. The domain is coming up for renewal in a few months. If this was you, what would you do with it?
 
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The views expressed on this page by users and staff are their own, not those of NamePros.

enterscope

Domain InvestmentsTop Member
Impact
1,283
I avoid premium renewal fees personally. I think the domain industry should boycott such practices.
 
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I avoid premium renewal fees personally. I think the domain industry should boycott such practices.

I agree, it's pretty predatory. So what would you do if this was you? Just let it drop or pay the grand (or two) and then hope for a 20x or 30x return in the next 12 to 24 months?
 
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Impact
7,435
depends on the name
 
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depends on the name
Yeah, indeed. However, I'm afraid I can't post the exact name for obvious reasons. I was really just curious of broad/blind opinions simply based on the fact that it's a 3 letter dictionary term and the fact that it has an absurd renewal fee. Particularly since there are many 3 letter xyx domains that don't have such high renewal fees.
 
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D Haynes

Top Member
Impact
4,706
I'd let it drop.
 
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karmaco

Top Member
Impact
11,734
Lesson learned- check renewal prices on xyz before you buy. If someone is offering a high quality xyz for very low price that may be the reason.

I think I would try to flip it rather than drop for a total loss.
 
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Lesson learned- check renewal prices on xyz before you buy. If someone is offering a high quality xyz for very low price that may be the reason.

I think I would try to flip it rather than drop for a total loss.

No, I was well aware of the renewal fee before I purchased it. I don't think I can bring myself to simply outright drop this particular name, although the 1K fee is indeed absurd. Would be interesting to see the resale sales data on premium xyz renewals.
 
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Reddstagg

The-Billionaire.comTop Member
Impact
3,136
Good morning.

Use the science of what you already know and not the perceived fear of paying four figures for a renewal. You believed enough in the name in the first instance to buy it for a few hundred bucks. Has anything really changed? Are lesser/longer .xyz names selling for mid $xx,xxx - yes.

Sometimes we have to have the courage of our convictions and have faith in our own abilities. How will you sell this name? Will you just let it sit there and toss a coin? Are you prepared to be rewarded for your sweat equity and actually and constructively set out to market you name and do the hard yards and find one buyer out of millions. The internet is a marvellous thing and the answer may just be a click away.

I say just put on you big person pants shout 'yippee kay ay' MF, slam you pedal to the metal and go get 'em champ.

Don't potentially lose out on a $xx,xxx payday just because you're a little bit scared LOL...sheesh, that's what makes this game so fun.

Maybe, you could just provide them name and you may get more engagement from more people which may also give you a better perception of its worth.

Never look back...you're not going that way!!!

Rgrds,

Reddstagg
 
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NYJimbo

Domain Re-AnimatorTop Member
Impact
6,980
I think I would try to flip it rather than drop for a total loss.
Yup, flip it. Even at a break-even or slight loss if you can't get a higher price.
But any decent 3L .xyz should be able to pull $500.
 
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NYJimbo

Domain Re-AnimatorTop Member
Impact
6,980
I say just put on you big person pants shout 'yippee kay ay' MF, slam you pedal to the metal and go get 'em champ.
LOL. You're not the one who has to lay out the $1000.00
 
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Reddstagg

The-Billionaire.comTop Member
Impact
3,136
LOL. You're not the one who has to lay out the $1000.00
...but I would...provided of course that it was a good/brandable 3L and not pure random mix of letters etc etc. However, I'm so poor I can't afford to pay attention LOL.

Fortune favours the brave.

It is better to have domained and lost rather than having never domained at all!!!

Rgrds,

Redd (but wears brown pants)
 
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It’s one thing to fork out a couple hundred and see if you can hit. Couple grand thats different story. He did domain redd. Paid xxx for say 4 months. Knowing August it would be a stack of hundred dollar bills. He tried, couple np special offers, pass it on to someone else. I would never pay $3-$5 a day for an xyz domain or even double hyphen like @Reddstagg loads up on
 
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Domain Endeavors

Established Member
Impact
17
If this was you, what would you do with it?
Obviously the answer is: it depends. If it's a strong 3 Letter name and $1,000-$2,000 isn't a big deal to you then it may be worth renewing. They slapped a "premium" renewal fee status on it for a reason. If you buy yourself a year with the renewal, only you have the necessary info to assess the likelihood of selling it for significant profit.

At least it isn't one of the Tier 1 premium renewal fees which are like $55,000 USD.

Sedo is having their New gTLD domain auction in a couple weeks. This one sounds like exactly the .xyz they look for. Of course there's risks associated with that approach too.
 
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johnn

WeSellName.comTop Member
Impact
9,596
If there is no potential buyer for a while I would drop it and use $1,000 to buy something else better to sell.
Don’t fall in love with the name. Follow the trend of the market.

IMO
 
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If there is a sufficient time prior to expiry, as well as either pay renewal or drop it, there is a third option, to auction it at Sav. Some premium .xyz continue to sell at good prices even with renewal. Sedo are accepting auction submissions for some new gTLD extensions including .xyz, but not sure if you are allowed with premium renewals.

Re keep or not, I guess I would try to guesstimate the probability of selling and probable selling price. Here is a list of LLL sales in .xyz from NameBio. https://namebio.com/?s==kTO1YjM2czM
For example, if you think your name might sell for $20,000, but has a chance of selling in any one year of 1 chance in 200, then multiplying those gives $100, so paying $1000 per year is not worth it. These are just example numbers of course, the real would depend on the name.

If you have not already done so, I would look up in OpenCorporates to see how many businesses have the short word as part of their name to give some idea of potential market, and as well as TLDs (from dotDB) look up also related longer words that include that name.

Right now many of the buyers paying $$$$+ for .xyz are web3 related. Is this word potentially a great web3 brand?

Anyway, my thoughts. Best wishes whatever you decide to do.

Bob

PS One of the brandable places, SH, take .xyz, and might be interesting to know how they would price the name. And if you list with them get added exposure due to their online ads. On other hand, need high price to make the holding risk worthwhile.

PPS If you do decide to renew it, make sure you shop around to get the best rate for the premium renewal. Some places charge more than others.
 
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Gabriel360

Established Member
Impact
786
I'd drop the domain name, unless it's sex or pay. Probably won't buy it in the first place.

You could get at least TEN great names in .com with a greater chance of profit.

Understand that not everyone can replicate the enviable .xyz success stories we see on NP.

Don't be a victim of the sunk cost fallacy.
 
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uzver

Established Member
Impact
1,987
You could get at least TEN great names in .com with a greater chance of profit.
Can you show an example a great name in .com that you bought for $100 (or less) recently?
 
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The problem is that "premium" renewal fees quickly turn assets into liabilities.

I have no interest in dealing with registries that have premium registration fees, premium renewals fees, and different pricing tiers.

The registry is directly competing against the domain owners. Pass.

Brad
 
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NYJimbo

Domain Re-AnimatorTop Member
Impact
6,980
...
It is better to have domained and lost rather than having never domained at all!!!
I domain for profit, not for the experience of it. I've seen your portfolio. Frankly, I dont know why you buy names that you do.
 
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Silentptnr

Domains88.comTop Member
Impact
46,702
It happens. You probably didn't realize the renewal fee when you acquired it. As tough as it can be, I would let it drop. I don't like premium renewals either.

I do have a couple of domains that have slight premium. One is $72 per year and the other is about 200 per year. The one I dropped turned out to have a $500 renewal and that was just too much to pay per year.

Anyway, sorry you ran into this.
 
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HexPixel_com

Established Member
Impact
119
"OMG the registrar won't let me register a domain cheaply to upsell the same domain for a multiple of the annual premium renewal fee to somebody else."

These premium renewal fees gave me a chance to actual acquire domains which I want to use.

So, instead of paying 10k to some rando domainers who acquired the domain for 10 bucks I was able to get a decent domain for 1k for an actual website. Premium renewal fees give creators a much better chance to create value and websites with decent names.

Every registrar should have these premium registration/renewal fees.

Your complaining about not being able to take advantage of people who need domains for real use cases. These people are willing to pay 1k a year, but not willing to pay 10k to just try out their ideas with a decent name and website.

That's why I stopped contributing to this community, it's just too much hypocrisy. You guys don't want to create value. Every domain should have a $2 registration fees so everybody can jump on it to upsell the same thing to somebody who actual needs it. :xf.sick:

As a creator I'm not complaining about the premium fees, because the benefit of having a nice name outweighs the costs. The ones who complain are the people who don't create anything but higher prices for everybody else.

And yes, I'm aware of being part of this "industry".
 
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He already noted he did -

Which gives pause and question to

Was this not a thought or concern at time of purchase?!?

Naturally, this was a concern. However, obviously it's impossible to predict just when a domain will or will not sell. There are no absolutes or guarantees in domain investing/flipping. I could invest $500 in a premium xyz, hold it for 3 months and sell it for 8K prior to the renewal. Or I could negotiate the upcoming renewal with the buyer and adjust the purchase price of the domain. Or I could go ahead and pay the 1K renewal fee, in which case I'd be 1,500 all in, hold the domain but then sell it within 10 months from now for only 5K and I'd still be up. Or I could pay the renewal fee for 3 straight years and sell it for 15K. However, this may be too much of a risk for many here, so that's why I made this post. It's always good to read other perspectives. Even after 15 years in this industry, nobody is perfect and everyone can learn something by listening to other viewpoints. That said, I am fairly confident that if I were to let this particular name drop, that it would be auctioned off quickly for an amount near (or even above) the renewal fee. IMO, I would be shocked if the value of a 3 letter dictionary xyz domain ever dipped below 1K, even with a 1K renewal fee. One thing I've asked myself is, how many people pay $1K in renewal fees for truly poor quality domains that they will never sell? Anyway, those are my two cents, but I really appreciate everyone's persowcyives thus far!
 
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Reddstagg

The-Billionaire.comTop Member
Impact
3,136
I domain for profit, not for the experience of it. I've seen your portfolio. Frankly, I dont know why you buy names that you do.
Thank you for your comments. I will explain my situation so that it is put into context., I have been domaining from scratch for just over 3 years and survived the global pandemic without losing any sleep. I pivoted my portfolio. I started with $200 dollars. I'm also about 90-95% hand reg so each domain costs me less than $8, so I'm not breaking the bank.

I have sold 8 domain names to date. They cost me $118.64. I sold them for $1451. This is an investment gain of $1332.36. This is an initial ROI of 1,123.03% or an Annualized ROI of 103.67% over a period of 3.52 years. The return on investment has repaid 8-9% of my total outlay so far just from 8 sales. I have over 600 domains waiting to be sold. I'm in for the marathon not the sprint.

I've only completed the first lap. Judge me when my race is run.

I'm still learning and I am prepared to listen to constructive criticism when it is well meaning and relevant. I sold a double hyphenated domain name for $500 and I have the 2nd highest recorded sale of .holiday which I also sold for $500.

My main issue was being with a localized registrar which could not be included in the Afternic fast transfer service and I have now have my domains listed at Dan .com.

I only spend what I can afford to lose and I NEVER have to sell a single domain name to cover my renewals as they're 95% ish dot.coms so no sweat.

I'm hoping to meet this week with a multi million dollar company as I have domain names that could improve their domain name and boost their customer base and increase eyes on views to their website by up to 2.7 million potential customers per annum.

I'm not the finished article yet but I'm learning every day and I'm putting in the hard yards.

Only time will tell and no one still cannot tell me what domain name will sell tomorrow LOL so until that day arrives I wish you well on your journey.

Rgrds,

Reddstagg
 
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