news Prices Increasing, Does It Make Sense To Renew In Advance?

[Bob Hawkes]

The wholesale price of .com domain names is increasing by 7% on Sept 1, 2021. This is the first of four approved price increases in the extension, over the next four years, so the compounded increase will be about 31%.

The actual retail price increase varies with registrar, and you can see some of the announced price changes in this NamePros discussion. Some are applying increases above the wholesale increase.

There have also been announced changes in other TLDs, for example, wholesale .xyz prices are increasing on Sept. 1 as well, by about the same amount.

In an article just published at NameTalent, I apply probabilistic thinking to the question of whether it makes logical sense to renew domain names in advance. The model is simple, so you could readily apply it to your own assumptions re current and future prices, and projected personal sell-through rate on the domain name under consideration.

Read full article ......

 

[bmugford]

I renewed about 700 domains today after some recent sales. I like to take future expenses off the table in good times.

I know, making responsible financial decisions is boomer mentality.

Brad

 

[bmugford]

The wholesale price of .com domain names is increasing by 7% on Sept 1, 2021. This is the first of four approved price increases in the extension, over the next four years, so the compounded increase will be about 31%.

The actual retail price increase varies with registrar, and you can see some of the announced price changes in this NamePros discussion. Some are applying increases above the wholesale increase.

There have also been announced changes in other TLDs, for example, wholesale .xyz prices are increasing on Sept. 1 as well, by about the same amount.

In an article just published at NameTalent, I apply probabilistic thinking to the question of whether it makes logical sense to renew domain names in advance. The model is simple, so you could readily apply it to your own assumptions re current and future prices, and projected personal sell-through rate on the domain name under consideration.

Read full article ......

It often makes sense to renew in advance for quality, long term hold domains.

The problem with renewing in advance though is that it can mean any sale has lost income. If you are going to sell a domain for $2,000 it would have sold for $2,000 regardless if you spent $9 to renew it for (1) year or $90 to register it for (10) years.

Despite that, I am mainly in the camp of renewing far in advance when it comes to quality domains. Not only do you save money long term, it also prepares you if times are bad later on by having less of a burden.

Also, I think you can factor the length of renewal into the negotiation itself. I have closed many deals by offering (10) year renewals in the package. It helps the buyer spread out the cost in their mind.

Brad

 

[bmugford]

Hello,
Can you please elaborate this in detail.
Thank You.

I will frequently use it in negotiations when it makes sense.

Let's say I am discussing a $3,500 - $5,000+ sale.

If the buyer is stuck on the up front cost, I will often offer to throw in a (10) year renewal as a way to sweeten the deal.

This has a couple of important points -

1.) It mentally helps the buyer spread the cost out over that period. They are not paying $5,000 now; they are paying $5,000 for a decade.

2.) It lets the buyer know that I plan on renewing the domain, and it is not going to drop later.

I don't bring it up all the time, only when I think it will help close the deal.

Brad

 

[AbdulBasit.com]

I've almost completed renewing all of my domains at least until the end of December 2022 which I plan to keep for a longer period of time. It will be done within this month.

This will give me ample time to focus on other things like the costs of buying, transfers and savings.

Also this will clearly indicate to potential buyers those who're waiting for the domain to expire to go and buy it because the domain isn't going to expire anytime soon.

 

[johnn]

All my names will be sold soon so I don't need to spend the money to renew.

 

[karmaco]

Of course you should renew in advance of a price hike any names you know you are keeping long term. If you have short term hold domains you might have to revisit that strategy imo.

I have been renewing, transferring every single deal since March 2021 in anticipation of this increase. If you have thousands of names versus hundreds it makes a big difference. Most of my keeper names are now into 2023 and 2024.

 

[FolioTeam]

Nice read. Noticed some improvements on your site's layout.

As for renewing in advance, I agree with the cons stated in your article especially that of tying up capital that could have gone to acquisitions.

Having said that, I usually renew in advance for most names but not more than 2 years ahead.

 

[Robin A.]

If GD decides on a price increase I will definitely renew the domains I have priced above $5,000 for a number of years. Because I am willing to sit on them for a long time.

 

[bmugford]

Where you think it helps to close the deal, you offer a Ten year renewal cost discount to the buyer.

I will offer to renew the domain as part of the package.

Instead of buying the domain for $5,000...they are buying the domain with (10) years of renewals added for same price.

Sometimes it helps drag the deal past the finish line for a small cost.

Brad

 

[Name Trader]

I just spent $5K renewing all my desirable domains thru to years-end for another year. I'm now looking at what I've left this year, to see it there is anything else worth renewing. There is always domains which I didn't renew worth renewing. But I was on a budget.

 

[bmugford]

700 at once wow Brad, that's a big number. Are you north of 5,000 domains?

I own close to 6,000 at last count.

Brad

 

[AbdulBasit.com]

I just ended up renewing more than 4,000 domains.

 

[DN_Hunter]

If GD decides on a price increase I will definitely renew the domains I have priced above $5,000 for a number of years. Because I am willing to sit on them for a long time.

I received an email from GD about their intended price increase. I have the Discount Domain Club, and the price for .COM is changing on Sept 1st from $8.29 to $8.85

 

[SuperDudePro]

I generally renew a few months ahead at time. I'll do that again at the discounted rate I have including a greater discount I received for a coupon, but not beyond a few months at a time.

By the way, to get Discount Domain Club at GoDaddy you have to pay something per month? Even if very little, this must be factored into the cost per domain.

It completely depends on how many domains that you have through GoDaddy. I currently have just over 500 registered there. I pay $120/year for Discount Domain Club. That means that it adds $.024 to each domain for me. But if I were at 1000 domains it adds only $0.12/domain.

As someone said, I may be able to find better deals and move them around year to year, but It is simply not worth the time and effort to me for the small gain. Even with the current raise in price, if I extended all 500 domains now instead of waiting until they renewed at the increased prices of $0.55 per domain, I'd save $275 over the course of the year. I'd also lose some of that back because of sales that would have eliminated the need for renewal. So, for me, it isn't worth renewing everything to save $275 at most over the course of the next year.

 

[xynames]

I generally renew a few months ahead at time. I'll do that again at the discounted rate I have including a greater discount I received for a coupon, but not beyond a few months at a time.

By the way, to get Discount Domain Club at GoDaddy you have to pay something per month? Even if very little, this must be factored into the cost per domain.

 

[DN_Hunter]

For the GD Discount Domain Club -- I got it last summer for 2 years - cost was $164 for 2 years (I think that was after I applied a 35% Off GD Coupon)

I usually renew domains expiring within a month for 1 year at a time. But I will probably renew names earlier than usual before the September increase. And my best names might get renewed for 2 years (maybe more).

 

[Samer]

Yes yes yes!!!

@Bob Hawkes, going up 7% EACH next 4 yrs.

FIGHT BACK, people!

Samer

 

[lock]

2024 Feels so far into the future as thought i would be so old year 2000. Flying cars.

 

[Future Sensors]

Yes yes yes!!!

@Bob Hawkes, going up 7% EACH next 4 yrs.

FIGHT BACK, people!

Samer

With the exception of 2020.

http://domainincite.com/25359-no-com-price-increases-this-year-thanks-coronavirus

See also the graphic on this page:

https://www.domainnameapi.com/blog/verisign-to-to-increase-com-prices-in-september

 

[jiy k]

I will offer to renew the domain as part of the package.

Instead of buying the domain for $5,000...they are buying the domain with (10) years of renewals added for same price.

Sometimes it helps drag the deal past the finish line for a small cost.

Brad

Thank you for this valuable tip.

 

[4better]

Renewing in advance will help one save a lot especially with big portfolio. One thing that's giving me a hard time is which of my domains need to be renewed or which of them need to be set free.

 

[Corey]

I will be renewing .com's before the end of the month

Cheers
Corey

 

[Bob Hawkes]

By the way, to get Discount Domain Club at GoDaddy you have to pay something per month? Even if very little, this must be factored into the cost per domain.

I totally agree that would need to be factored in. I believe although they quote it as a per month, really it needs to be subscribed annually. For me it list as $19.99 per month on annual subscription, so the cost is substantial and you need a fair number of domain names there to justify it. I believe those who were members prior to the big price increase on the discount club can still get old rate, if they have subscribed continuously. Thanks for your comments.
Bob

 

[CraigD]

For the GD Discount Domain Club -- I got it last summer for 2 years - cost was $164 for 2 years (I think that was after I applied a 35% Off GD Coupon)

I usually renew domains expiring within a month for 1 year at a time. But I will probably renew names earlier than usual before the September increase. And my best names might get renewed for 2 years (maybe more).

GD DDC for 2 years?

Was that an introductory offer?

It's getting too expensive unless you have a large portfolio to bring the costs back inline with other registrars.