Read the renewal price before the first-year price
The first-year price wins the sale, but you pay the renewal every year you keep the name, so read the renewal first.
Chapter 4 of 12, 13 min read
You have found the name. The registrarRegistrarThe company you buy and renew a domain through, such as Namecheap or GoDaddy. It does not own the name, it only registers it for you.Read the definition's checkout shows a first year at a few dollars, your card is out, and tomorrow you present the brand. One line under that price is still unread: what the name costs next year, and every year after. For most names, it is a few dollars more. For some, it is ten times the first year. For a few, it would pay a salary.
Three mechanisms cause this, and you can see each of them before you pay. By the end of this chapter, you can put a five-year costCost to holdWhat a name costs over five years: the first year plus four renewals.Read the definition on any name and read its renewalRenewalThe yearly fee that keeps a domain yours. You pay it for as long as you hold the name, and on some endings it costs far more than the first year did.Read the definition on the name itself. You can say what our renewal trapRenewal trapA cheap first year followed by a renewal at least twice the first year and at least $10 more. The low price wins the sale, and the yearly fee afterwards is where the cost really is.Read the definition flag catches and what it misses. And you can lock your price before an announced rise reaches your renewal date.
What you will be able to do
- You can put a five-year cost on any name before you pay.
- You can tell a teaser, a registry premium and an announced rise apart, and know where each one shows.
- You can read the renewal on the name itself, in the drawer, in the availability checker and at the registrar.
- You can lock your price by renewing ahead when a rise is announced.
One first year, four renewals
You do not buy a domain name once. You pay for it by the year. You pay the first year to the registrar, the company that sells you the name, and then a renewal for every year you keep the name.
Part of what you pay goes to the registryRegistryThe organisation that runs an ending, like the company behind .com. It sets the rules and the price registrars pay.Read the definition, the company that runs the ending, as a wholesale price for each name and each year. Over five years, you pay the first year once and the renewal four times. That sum is the five-year cost Unique Domains shows on every name.
On .com, across the registrars we price, the catalog's median first year is $11.62 and its median renewal is $13.40. On .tech, the same two figures are $8.23 and $56.07. The first figure of each pair is the advertisement. The second is what you live with.
Renewals are where the money is, so a first year can be given away. In 2019, renewals brought in 58% of Radix's $2 million of revenue from premium names, as Elliot Silver reported on DomainInvesting on 4 March 2020.
ICANNICANNThe body that sets the rules for domain names and approves new endings.Read the definition is the body whose rules registrars follow. Its expired-names policy of 2013 requires a registrar to show the renewal fee at registration, and it encourages a prominent display when that fee is higher than the registration price.
A $5,000 name renewing at $55,000
Case- Bought for
- $5,000
- Yearly renewal
- $55,000
- Five years
- $225,000
- Renewal against price paid
- 11 times
Elliot Silver, an investor who writes, reported on DomainInvesting on 3 January 2022 what happened to one buyer. The buyer paid $5,000 for a single-letter .xyz name, could not find the renewal fee, and guessed that it would be $1,000 a year at most. The fee turned out to be $55,000 a year. The buyer later managed to reverse the purchase.
Here is the arithmetic for a buyer who keeps the name. The first year costs $5,000, and each of the next four years costs $55,000, so five years come to $225,000. The renewal is eleven times the price paid, and the price paid is about 2% of the five-year cost.
A standard .xyz name renews at its ending's list priceList priceThe price a registrar publishes for an ending, before any coupon or bundle. It is what anyone pays who simply adds the name to the cart.Read the definition, and the median of that price across the registrars we price is $15.72. So the ending told the buyer nothing, and a trap flag on the ending stays quiet.
The lesson for a founder is the order of reading. The renewal comes first, read on the name itself, from the registrar's quote. The purchase price comes after it. A renewal you cannot find before paying is a renewal you have not read.
Elliot Silver, DomainInvesting, 3 January 2022: Beware of high annual renewal fees
A rise after you bought
The third mechanism reaches names you already hold. The registry can raise its wholesale price for every name on the ending, and the registrar passes the rise on. Domain Name Wire reported three such rises.
The first report, on 23 April 2026, carried a notice from Verisign, the company that runs .com: the wholesale price goes from $10.26 to $10.97 on 1 November 2026. Three more steps of 7% are allowed, one in each of the three contract years that follow.
The second report, on 21 July 2026, said that Identity Digital, which runs .io, told registrars of a rise from $50 to $56 on 19 January 2027. The third, on 2 February 2026, said that the .ai wholesale price goes to $80 a year from 5 March 2026, with a two-year minimum on every registration and renewal.
Nothing obliges your registrar to warn you. Andrew Allemann wrote in 2024 that most registrantsRegistrantThe person or company the official record names as the holder of a domain. Changing the registrant can block a move to another registrar for a while.Read the definition, the people who hold a name, never hear of a price increase, and that a registrar who does tell them usually does so close to the renewal date.
The renewal shown at checkout rarely includes an announced increase, Allemann added on 4 June 2025. So until a rise takes effect, the renewal at checkout may still show the old price.
A variant of this mechanism catches names at the drop, the moment when an expired name is released for anyone to register. The name can come back tagged premium for its next registrant, as Allemann documented on .co and .xyz on 24 June 2022.
Against an announced rise, you have one move, and it is to lock the price. Where the registrar allows it, renewing several years ahead pays for those years at today's price.
A renewal of up to ten years, paid before an announced increase takes effect, locks the current price, as Allemann wrote in 2022, 2024 and 2026. The .com rise of 1 November 2026 kept the old price for every term paid before the change.
What our flag catches and misses
Unique Domains reads the price of every ending at each registrar we track, both the first year and the renewal. It flags a renewal trap on a registrar's price when two things are true: the renewal is at least double the first year, and it is at least ten dollars above the first year.
A two-dollar first year that renews at seven dollars is three and a half times more, yet the gap is only five dollars, which is not worth a warning. A forty-dollar first year that renews at fifty is ten dollars more, and it is no teaser. A three-dollar first year that renews at sixteen carries the flag.
The flag shows in Registrars, in the price matrix and in the Renewal traps block. It also shows in the drawer's section The ending, beside each registrar's renewal, and in the availability checker, which prints the multiple as well, such as renews 8x.
The flag reads published prices for an ending, so it sees a teaser and nothing else. It cannot see a registry premium. It cannot see a rise announced for next year, which is in no price list yet. And it cannot see a name that comes back tagged premium at the drop. Those three you read on the name itself.
Five-year math on a discounted premium
Case- Premium renewing at the premium, five years
- $6,495
- Same name, half off the first year
- $5,846
- With the promotion, five years
- $1,310
- Per year
- about $260 against $1,299
Andrew Allemann worked the numbers for a promotion by Rightside, a registry of that time, on Domain Name Wire on 4 April 2016. For premium names registered during the promotion, the wholesale renewal dropped to $10 for good.
The article's example was Ballet.studio at $1,250. With perhaps $15 a year to renew, five years come to $1,310, or about $260 a year, instead of $1,299 a year without the promotion. The article set that beside an earlier registrar offer, which Allemann recalled as 50% off the first year and called just a 10% discount over five years.
Now run that earlier offer on the same name at $1,299 a year. It saves $649.50 once, so five years come to about $5,846, against $6,495 without it.
The discount that wins the sale is worth a tenth of the five-year cost. The promotion's renewal rule is worth almost four renewals at the premium price. Allemann added that the reduced renewal stays with the name unless the name expires, so a buyer you sell it to pays the lower renewal too.
Andrew Allemann, Domain Name Wire, 4 April 2016: Rightside to run domain investor-friendly promo on Premium domains
Read the renewal on the name
Four places give you the renewal of one name, from the quickest to the surest.
- In Browse, open the name. Price and cost shows the price today and the five-year cost. The section The ending lists each registrar's first year beside its renewal, with the trap tag and the cheapest renewalCheapest renewalThe lowest yearly fee among the registrars we compare for an ending. Over several years it matters more than the first year.Read the definition marked.
- In the availability checker, type the name. On the website, one live check a day gives a free name's first year and five-year cost. On the Investor plan, each quote comes with its five-year cost, the registrar where holding the name costs least is tagged, and the renewal multiple is printed. On a premium name, Check every registrar shows that the cheapest first year is not always the cheapest renewal.
- At the registrar, read the renewal line of the checkout before you pay. ICANN's policy of 2013 requires the registrar to publish it. If the checkout hides it, send the message below first.
- For a name you already hold, start a transfer to a second registrar, read the price that registrar quotes, and then stop before you pay. Andrew Allemann called this perhaps the surest method (Domain Name Wire, 30 March 2017).
Before you pay
Ask for the renewal in writing
Write to the registrar's support before you pay for a name whose renewal you cannot find at checkout, or when a rise on its ending is announced.
Hello,
Before I register [name] with you, could you confirm in writing:
1. The exact renewal price of [name] for each of the next three years, in [currency], taxes included.
2. Whether this name is a registry premium, and whether the premium applies to every renewal.
3. Whether an announced increase for [ending] applies to this name, and from which date.
4. Whether I can renew several years ahead at today's price, and for how many years.
Thank you,
[your name]
Keep the answer with your invoice. It is the price you were told.
Try it in Registrars
Your turn- Open Registrars on the website and look up your ending. You get one ending lookup a day, and you need no account. Write down the first year and the renewal at your registrar.
- On the result, note the cheapest renewal, any trap mark on your registrar's row, and any promo tag on its first year.
- Add the first year to four renewals, and write the five-year cost beside the name. Do the same for a second ending. Compare the two sums, not the two first years.
- Open your name in Browse and read Price and cost. If its five-year cost differs from your sum, see which registrar quotes it, and whether the quote is the name's own price rather than the ending's list price. Write down the figure quoted on the name.
Sources
- ICANN, 28 February 2013: Expired Registration Recovery Policy
- Kevin Murphy, Domain Incite, 10 November 2013: New gTLDs bring back tiered renewal pricing
- Andrew Allemann, Domain Name Wire, 4 April 2016: Rightside to run domain investor-friendly promo on Premium domains
- Elliot Silver, DomainInvesting, 4 March 2020: Radix shares 2019 revenue report
- Elliot Silver, DomainInvesting, 3 January 2022: Beware of high annual renewal fees
- Andrew Allemann, Domain Name Wire, 1 June 2022: 15 things to know before you register a domain
- Andrew Allemann, Domain Name Wire, 23 April 2026: Breaking: VeriSign raising wholesale .com prices
- Andrew Allemann, Domain Name Wire, 21 July 2026: Wholesale .IO registration cost increasing to $56
- Unique Domains, 31 October 2026: How the renewal trap flag and the five-year cost work
- Andrew Allemann, Domain Name Wire, 4 June 2025: .Cloud changes premium pricing model, increases regular fees 33%
- Kevin Murphy, Domain Incite, 20 January 2025: These are the TLD growers and shrinkers of 2024 (part two)
- Namecheap, 24 June 2026: Can I set up automatic billing for my Namecheap services?
- Karn Jajoo, GoDaddy Resources, 1 May 2026: Should I buy a premium domain name?
- Dynadot, 8 November 2024: Dynadot Help: premium domains
- Andrew Allemann, Domain Name Wire, 2 February 2026: .AI domain name prices going up $20
- Andrew Allemann, Domain Name Wire, 28 March 2024: ICANN publishes economic analysis about price controls in .org and .info
- Andrew Allemann, Domain Name Wire, 24 June 2022: Can registries reclassify your domain as premium before renewal?
- Andrew Allemann, Domain Name Wire, 30 March 2017: Premium renewals create headaches for domain buyers
- Andrew Allemann, Domain Name Wire, 30 June 2015: 8,000 Premium .Club domains available through registrars tomorrow
This course explains how the trade works. It is not legal or financial advice.