As we already explained in other posts, the domain name is a vital element of any web development project. Its selection requires a careful approach, as a large share of your web project cost will be based on marketing efforts necessary to advertize the domain name in question.
But domain names have a life cycle; it is very important to realize that for many reasons. First, we need to protect the domain name to prevent it from expiring. Also, detect the moment when a domain name, that belongs to somebody else, is near expiry; inquire about any additional fees that a Registrar may impose once your domain name expires.
Available: The domain name is available for registration.
Active: The domain is already registered. Registration periods vary from one year to 10 years.
Expiry: That is the date when the domain expires. A lot of people think that the domain will become available after that date, but nothing is farther away from the truth. Even after that date, there are several other stages before the domain becomes available.
Grace period: After expiry, the website with the expired domain name is deactivated, but its owner can still renew it at regular prices, without additional fees. Usually the domain remains in your registrar’s control panel so it can be renewed directly. In many cases, registrars offer various types of promotions in order to keep the customer: we recommend to search for coupons or discount codes on the internet. The grace period is between 30 and 40 days. The registration cost and the exact length of the grace period depend on each particular registrar.
Redemption period: Once the grace period is over, the domain can disappear from the control panel and its renewal could still be done via your registrar, but at a significantly higher price, which can even reach USD 300,-. We recommend inquiring by email to your registrar’s support, on their renewal fees in such situations. The redemption period is about 30 days. During the redemption period, registrars often try to auction the domain name. If it receives offers, then it will be offered to the winner, once the redemption period is over. Domains with many visits or domains that comply with all the “good domain name” requirements, are normally in high demand. The exact length of the redemption period, and related fees, depend on each registrar.
Pending elimination: During this stage, which normally lasts 5 days, the domain can no longer be renewed directly. To rescue it, you will need to backorder it via an external company. Backorder companies work in liaison with several registrars; when a domain name is eliminated, its associates make repeated requests to obtain it instantly the moment they become free. Backorder companies have different prices and conditions. The most famous are:
Snapnames: The price of a backorder is about USD 59,-. If only one person files for a backorder, then it is granted directly, otherwise, an auction sale is set up, and you will only pay the fee if you win the auction.
Pool: Their prices, auction regulations, and payment methods are very similar to Snapnames.
Goddady: They charge USD $18.99,- which is paid in advance, even if you don’t obtain the domain eventually; nevertheless, you can use the payment to place a backorder for a different domain. Only one person can file a backorder for a domain, thus, if GoDaddy manages to grab it, then it’s yours.
How to decide which service is best? Depends on how necessary that domain name is for your business. If the expired domain is very important for your project, it is advisable to use Snapnames, or Pool: you will only pay if you get it, even if the actual fee is higher, about USD 60,-. Now, if the domain name in question is not extremely important, it’s best to use GoDaddy, which will allow you to increase the options of manual registration, and in itself presents an excellent choice.
Somebody else won the domain: in this case, the only chance left is to negotiate with the new owner. For that, use tools such as Whois, to determine who the owner is; also, study the market to find out what the domain’s real market price is. A good way to establish the real value of a domain name, is to look up sales that took place on secondary markets, for domains with similar characteristics.
You may also consider delegating the negotiation process to professionals: the company best known in this matter is Sedo.
Ideally, renew your domain names long before they expire and preferably for many years. Remember that rescuing a domain name is expensive and can take a long time. It is convenient to ask your registrar about the fees and conditions of expired domains, in order to avoid bad surprises later.
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