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Renewing domains in advance to increase sales?

Labeled as discuss in General Domain Discussion, started by nomen, Jun 28, 2016

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  1. nomen

    nomen Top Contributor VIP

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    So probably like the most of you guys and girls I've always been renewing my domains at the very last minute and in many cases transferring them out to reduce costs if possible. But just recently I've been starting to renew domains that I like much and tend to keep at least for a few yars way in advance.

    My reasoning is that if there would be an end user looking for a domain for an upcoming product or service and he/she sees that the domain is about expire in, say, ~ one month, he/she might just want to see if the domain simply comes available (given that he/she is not that familar with the domain exp. process). It's not like he/she doesn't have a lot of other things to do.

    This is all theory at the moment but based on traffic, inquiries, offer views (though pretty useless metric IMO), WhoIs counts and just plain old gut feeling, I renew selected domains even for a couple years. And as said, I just employed this tactic just recently and really don't know if there's anything to it yet.

    Opinions? Thoughts?
     
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  2. RJ

    RJ Domain Buyer PRO VIP ★★★★★★★★★★

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    Good observation. Based on my own experience I would agree with it. I think if it is close to expiration, some buyers will wait before making contact.
     
  3. nomen

    nomen Top Contributor VIP

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    And to add to my point, it's often times better to use that $10 to renew a good domain (that you intend to renew anyway) than to buy some of those impulse buys/regs (that we all do).

    EDIT: Or at least this is the strategy that I'm going to test for a while.
     
  4. hugegrowth

    hugegrowth DomainMedia.ca VIP ★★★★★★★★★★

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    If you have many domains it ties up a lot of cash to renew many years in advance. Might show people you are serious about holding the name or give it some importance. But I don't think it matters much for sales, if someone wants it they want it.
     
  5. TampaDomains

    TampaDomains Established Member

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    I think you should register all your domains for 10 years so people will be much more motivated to buy them from you. :-,
     
  6. Silentptnr

    Silentptnr David George VIP

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    Also, by renewing your favorites for more than one year, you get the current renewal price. No guarantee the renewal prices won't increase. I just got an email today that .org increased.
     
  7. hxp

    hxp SuperDuperUltraRarePremiumHolographic Member VIP

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    I completely agree with this strategy.

    I've actually thought about it for a while, and there multiple pros, with pretty much just 1 con.

    Pros & Cons (Considering .com names @ $10/year for 10 years):

    - You can negotiate/do business, stress-free. There's no pressure to make deals, and you're not constantly watching your back.
    - You have 10 years to make the sale. Who knows how many offers you might see during that time?
    - You think twice, even thrice, about the names you invest in. Thus, improving the quality of your names.
    - As you mentioned, it encourages the buyer to make an offer, instead of waiting/hoping for a drop.
    - It offers the buyer value. Your price includes registration for a full 10 years! Great point to bring up during negotiations.

    - $100 per domain, upfront. Could be a dud...?

    If I could go back in time, I'd totally invest my first $100 on 1 name, instead of 10...

    :)
     
    Last edited: Jun 29, 2016
  8. campout

    campout Top Contributor VIP

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    Wow - I was just thinking about this the past couple days and here you have posted a thread on the exact theory.

    Obviously, the downside is in the tying up of capital -- and that certainly is a downside to anyone (like me) who occasionally runs up against capital constraints (ie getting close to $0).

    I think what we can pretty definitively say is that a name which expires further out in the future will be more likely to elicit an offer over a large sample size. I think the plan of adding some years to your best names is smart.

    Last point: it's unlikely any of us will ever be able to know for sure if this is or isn't working, unless a buyer were to make a comment like, "I saw that this was renewed out through 2020, so I knew I had to approach you directly."

    But I think the logic is good on higher value names.
     
  9. GoKaizen

    GoKaizen Always be Learning VIP ICA Member

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    I had a sale recently and put the money into renewals for valuable domains and built websites.

    You have to know what's worth renewing though. You don't always know what the future holds. :)
     
  10. nomen

    nomen Top Contributor VIP

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    Yeah, if someone wants it they want it... But want it bad and want it no matter what are too different things. In most cases, the buyer has A LOT of options to consider, many of them priced at the same level. And more time they have to think about it, more likely they come up with some not so great hand reg.
     
  11. nomen

    nomen Top Contributor VIP

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    @hxp Stress-freeness is a great point, too.
     
  12. campout

    campout Top Contributor VIP

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    Exactly. If they see that your domain is expiring in 2 months, they may say to themselves, "I will check back in 2 months to see if he renews it," and then they go off and lose the impulse to buy.
     
  13. nomen

    nomen Top Contributor VIP

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    Yup, and if it's a developer or even an already established startup the chances are the project is going change within X time. And the name they initially thought is long forgotten.
     
  14. ulasbbtr

    ulasbbtr Established Member ★★★★★★★★★★

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    Renewing for 10 years will significantly reduce your ROI. Instead of spending 10, you will be spending 100 and paying renewal dues of the buyer in advance.
     
  15. nomen

    nomen Top Contributor VIP

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    Sure but meant more like two years, three years... For a selected few.
     
  16. doubleU

    doubleU Top Contributor VIP ★★★★★★★★★★

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    For whatever reasons people always seem to want what they can't have, domains with a expiration date over one year can cancel out any hope that the buyer has of acquiring the domain form expiration or deletion. It can change the mindset of some buyers and even make them want it more, leading to more bids and inquires.

    I have two lists of domains I wish to acquire, one list for domains I think have a good chance of expiring and another list for domains that have expiration date far into the future.

    You can guess which list I get my domains cheaper.
     
  17. AuctionBio

    AuctionBio Top Contributor VIP

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    Good points you discussed here. Yiu are right that end user can think of expiring the domins with in some months. So here I agree with you renewing good domains in advance, as it's also my habit to renew at the very last manure.
     
  18. briguy

    briguy Guru In Remission! VIP ★★★★★★★★★★

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    If it within my budget, I will renew a domain for multiple years. Simple reasons, I don't remember paying less for renewal than the previous year and the exchange rate between my currency and USA's always fluctuates.
    Note I prefer to sticking to the same registrar rather than transferring out to save a few dollars.
     
  19. DomainVP

    DomainVP DomainVP.com VIP

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    I think that it's clever to add renewal years to your more premium domains.

    From observing acquisitions of .COM domains, if an acquisition is not an urgent necessity companies they tend to wait 3-5 years to 'feel you out' to see if you will drop the domain.

    If you add 5-6 years registration onto a name, it removes all question about your intentions on keeping the domain.

    I have done this with a few DN's... sometimes it works sometimes it doesn't.
     
  20. iAchilles

    iAchilles Top Contributor VIP

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    The longest I've gone to date is 2024 on one name.I suspect you might be right with potential buyers monitoring names. I recently got a series of price requests on Afternic right after I transferred/renewed a batch which I found very interesting.

    My long haul names I renew for 2-3 years in advance. I didn't do it all in one lump sum though, each time I make a sale I reinvest a little into renewals of my existing portfolio.
     
  21. DOMAIN ILLUMINATI

    DOMAIN ILLUMINATI Owner of ▲ the most expensive domain of all time. VIP Gold Account

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    Good question, I also thought about it in past.

    I personally would recommend to renew it for more than 1 year if it's a domain which you think you will sell for sure someday.
    The more you are convinced that the sale will be a big deal, the more renewal years in advance you should choose.

    That's why I renewed my toptoptoptoptoptoptoptoptoptoptoptoptoptoptoptoptoptoptoptoptop.top which is the most expensive domain of all time for 10 years.

    If the interested party sees that the current registration date is about 10 years in future then they will start sooner a serious negotiation instead of speculating with the registration after an expiration date in nearer future.

    And, as said above, it's more stress free of course.
     
    Last edited: Jun 30, 2016
  22. jamesosix

    jamesosix Top Contributor VIP

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    I guess its the same with domainers. Nobody wants to buy a domain with a month or two left, and they will just wait for it to drop (which it rarely does).
     
  23. DomainAgents

    DomainAgents VIP Member DomainAgents VIP

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    I don't know if it's worth it to renew it for 10 years, but I think it's definitely worth it to renew in advance and not wait until the last minute. There are definitely buyers who wait to see if a domain will expire before reaching out, especially those that haven't bought a domain on the secondary market before. They tend to think that they'll just be able to buy it expiration day +1 because they don't know about the grace period and drop catchers.
     
  24. stub

    stub DNStore.com PRO VIP ★★★★★★★★★★

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    I think it's a good strategy, if your cash flow can afford it. Which is usually the binding constraint. But, I think you need to choose the domains you renew wisely. ie, that you expect to sell in the next 3 years. That also is quite a difficult call.

    If you could do all that. Then you know which domains you should be dropping ;)
     
    Last edited: Jun 30, 2016
  25. netbull

    netbull Established Member

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    Renewing Domain for 10 years is not necessary unless you want sit for Decades holding the domain (without buyers most of the time as person who renews for 10 years will have high expectations)
     

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