discuss Domain renewal fees how much is too much

[Cryptghost]

Hi

I have a question about buying and selling hand reg domains.

I have seen a few available domain names that are in the New TLD exstensions. These words are ultra premium in the .coms and would fit perfectly with the new TLD.

Now I know the only new TLD's that sell are the ones that are relevant to the TLD. However, the renewal fees range from 30 dollars to 300 dollars, my question is, is it still worth purchasing the domain, I am 80% certain that I will be able to sell them. But if the renewal fee is too high is it worth avoiding, how much is too much in a renewal fee when selling domains? I won't be hanging onto the domain so I will let it expire or I will sell, it is a risk but is it a risk that others have taken?

I would appreciate your views before I make a purchase,

 

[Silentptnr]

It really depends on the domain. If you are not willing to pay $30, why would someone else. With proper research, you should be able to determine if it's worth it. Generally, if you are 80% sure you can sell it, why not? I wouldn't spend hundreds necessarily, but $30 isn't too bad. My highest renewal is on the domain
ai.city at 72 per year.

 

[eurorealtor]

$300 renewal is too high even for end user.

 

[Cryptghost]

Thanks, I will stay clear, the reason I asked because I have seen premium names being sold which would have had an expensive renewal fee attached, if something is too good to be true, it probably is

 

[TerriJ]

$300 renewal is too high even for end user.

Doesnt that depend on the end user. If it's a large company.. $30 is nothing.

For a regular person like myself... that's too much.

I have a few with $25+ renewal fee... but I set these not to auto-renew... so no worries. I will just make a massive attempt to sell the domain before the year is up.

 

[Kate]

Don't make life more difficult than it already is.
How can you be 80% certain that you will be able to sell the domain if it's still available to be registered. Maybe nobody wants it, or the renewal fee is the killer. Go for sensible domains with reasonable, predictable fees.

The most I ever paid was $80 for a ccTLD (a .cr and I sold it ), even for ccTLDs I have seldom paid more than $50/yr.

 

[TerriJ]

Doesnt that depend on the end user. If it's a large company.. $30 is nothing.

For a regular person like myself... that's too much.

I have a few with $25+ renewal fee... but I set these not to auto-renew... so no worries. I will just make a massive attempt to sell the domain before the year is up.

Woops... You said $300. Misread it as $30
Well, if it's a large corporation $300 is nothing. But most people probably would not be willing to pay that.

 

[Kuffy]

It depends on the name and the person. I've decided that the new .net fees are too much, so I'll be getting out of those over the next year.

 

[Cryptghost]

I will stick to .com for the foreseeable future, I have flipped a few .orgs and .net, the newer domains seem to be a known unknown, thanks for all the advice, you all saved me some dollars.

 

[Asfas1000]

If you are so certain that you will sell it, then you should buy it, even at high renewals.

 

[garptrader]

Published domain sales reports can be misleading making those new to the industry believe it is easier to sell a domain than it really is. With $10 renewals, typical 1% portfolio turn and 20% marketplace commissions, an investor needs a $1250 sale just to break even on a handreg portfolio. Good luck selling a typical handreg for $1250.

Higher renewal costs increase the hurdle one has to overcome to be profitable. Of course a higher sales ratio or average sales price can do the trick. But again there are limits. New TLDs do give low-budget developers and small businesses alternatives. That does not mean they are going to pay huge premiums for your domain just because you have to pay higher renewals to cover your costs. There a few domainers beating the odds but they have to be very strict with their evaluation process.

 

[Asfas1000]

typical 1% portfolio

This doesn't apply here; seller says he's 80% confident it will sell (I assume for an end user price, not just sell).