What is the point of renewing for more than 1 year?

[PostProduction]

Hello there,

I was wondering if it was adding any value to a domain name if renewal was already paid for more than 1 year?

I didn’t buy or sell any names yet, but my understanding after reading here was, that after a deal a new owner would have to pay a transfer fee anyway, unless he keeps it at the same place, is that correct? If I have a name that I am selling at lets say Uniregistry and the new owner wants the name to be transferred to GoDaddy, wouldn’t it be a waste of money if I had renewed the name for 2 years before the sale? Or would the renewal be inherited to the new owner?

Would you renew for more than 1 year because you don’t expect the name to be sold within the next year anyway? Or would you do so to show that you don’t have to sell the name and that you would be happy to hold it, this way hoping to increase the price?

 

[anantj]

The transfer will add one more year to the current expiry date. So the renewal gets extended to 3 years in your example. For an end-user, it makes sense to renew for multiple years as they plan to use the domain. For domain investors, it does if the domain is premium and they are willing to wait for the right sale

 

[barefooted]

Two more reasons:

- sometimes registrars offer discount if you register for more years

- A Google patent states:
“Valuable (legitimate) domains are often paid for several years in advance, while doorway (illegitimate) domains rarely are used for more than a year. Therefore, the date when a domain expires in the future can be used as a factor in predicting the legitimacy of a domain”.

 

[Kuffy]

It delays the time when the price increases kick in for you.

 

[briguy]

Personally, the domains I plan to flip within a year ( hopefully), I register for a year.

The few I plan on keeping in my portfolio for long term investments (upcoming tech niche etc), I register for a few years.

Also, some domainers plan on developing sites (content etc) as a way of adding more value to the name so they register for more than a year...

 

[Nerevar]

One important reason is to signal to buyers that it is poinless for them to wait and hope that domain will drop.

 

[anantj]

“Valuable (legitimate) domains are often paid for several years in advance, while doorway (illegitimate) domains rarely are used for more than a year. Therefore, the date when a domain expires in the future can be used as a factor in predicting the legitimacy of a domain”.

Just to be clear, it's just at the patent stage right? I don't think Google has ever stated this officially

 

[barefooted]

https://www.google.com/patents/US7346839

Google’s patent “Information Retrieval Based on Historical Data” of 03 31 2005 shows that Google does look into domain registration and renewal dates.

 

[Brandworthy]

Google’s patent “Information Retrieval Based on Historical Data” of 03 31 2005 shows that Google does look into domain registration and renewal dates.

It means they can, it doesn't mean they actually use this data. Many things are in patents without actually being used in the wild.

 

[AbdulBasit.com]

p.p1 {margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px Helvetica} p.p2 {margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px Helvetica; min-height: 14.0px}

Hello there,

I was wondering if it was adding any value to a domain name if renewal was already paid for more than 1 year?

I didn’t buy or sell any names yet, but my understanding after reading here was, that after a deal a new owner would have to pay a transfer fee anyway, unless he keeps it at the same place, is that correct? If I have a name that I am selling at lets say Uniregistry and the new owner wants the name to be transferred to GoDaddy, wouldn’t it be a waste of money if I had renewed the name for 2 years before the sale? Or would the renewal be inherited to the new owner?

Would you renew for more than 1 year because you don’t expect the name to be sold within the next year anyway? Or would you do so to show that you don’t have to sell the name and that you would be happy to hold it, this way hoping to increase the price?

I try to renew my best names for years in advance so that any buyer seeing the expiration date which is 6-10 years extended from today will make him realize the name isn't going to drop anytime soon and it's better to make a serious offer if they are serious enough for that domain name.

 

[anantj]

I try to renew my best names for years in advance so that any buyer seeing the expiration date which is 6-10 years extended from today will make him realize the name isn't going to drop anytime soon and it's better to make a serious offer if they are serious enough for that domain name.

Very interesting technique. I think I should try it too...

 

[MapleDots]

One of my regrets in life.....

I had low ball offers by a company for one of my domains and I tried to negotiate higher with not much success. WHOIS said my domain expired in 6 months and I figured they might be waiting for that so I renewed for 5 years. A few months later I was able to negotiate up to 75k. In my young and stupid days I decided to hold out for 120k and obviously that did not happen. I have had no contact with the company since and the 75k offer has evaporated.

Moral.... Never leave money on the table, take it when you have it.

As it applies to the OP's post.... The longer registration definitely helped me in my negotiations.

 

[arnela]

Very interesting technique. I think I should try it too...

Def agree with this technique! It works.

 

[carob]

Another reason is corrupt WIPO/UDRP panelists have in some cases falsely claimed the registrant's rights start from the renewal date, not the registration date, allowing them to transfer the domain to someone whose trademark started only after the registrant first registered the domain.

 

[GoKaizen]

How many domains do you do this with?

I try to renew my best names for years in advance so that any buyer seeing the expiration date which is 6-10 years extended from today will make him realize the name isn't going to drop anytime soon and it's better to make a serious offer if they are serious enough for that domain name.

As it applies to the OP's post.... The longer registration definitely helped me in my negotiations.

 

[MapleDots]

How many domains do you do this with?

I do it on the ones I have had enquiries on just to make sure they see that I have no intention of dropping the domain.

 

[BrandSac]

what i think is great domain today i can see it bad after one year so why i do pay 2 years in advance, and this is my philo in business all about buy low, sell high, cut losses and move on

 

[AbdulBasit.com]

How many domains do you do this with?

As many as they fit under long term selling. Few hundreds are already renewed over 2018.