Rightside’s first batch of new TLDs follow the expected pattern for re-renewals.
Rightside, which markets 40 top level domain names, this week published data on domain name renewals. The data aren’t particularly surprising.
The company has seven top level domain names that have been available for a full two-year cycle. During the first year, these top level domain names had a 69% renewal rate.
Of the 21,000 domains that were renewed at the first anniversary, 81% were renewed at the second anniversary.
First-year renewal rates are almost always lowerer than second-year rates for obvious reasons. The first year weeds out people who were speculating and have given up, or had an idea that didn’t come to maturation.
By the time the second renewal comes around, you mostly have people in a few different groups:
1. Brands that plan to continue reserving their domains
2. People that have put the domains to use
3. Domain investors who are willing to hold out longer term, at least for their better domains
For comparison, the first year renewal rate on .com domain names is about 50%. The overall renewal rate is closer to 75%. This overall calculation includes both the first year registrations and the 20+ year ones.
Domainer says
I wonder how many of these renewals were for just ‘trademark protection’?
It would also be interesting to know how many are really developed, not just placeholders or being forwarded?
And, roughly how many are owned by domainers?
christy io (@rxxxxi2i2) says
i have about 600 domains about 10 new gltd’s. 1 info, 5 nets, 1 org, i us, 1 io, 3 xyz
Joseph Peterson says
It may not be surprising, but Normal isn’t Inevitable.
Theoretically, if the market’s estimate of a given TLD’s value were declining precipitously, we might see people abandoning domains rather than re-renewing them.
Instead we’re seeing what we usually see: Those who’ve kept domains tend to keep them. Rightside has passed a health exam with no signs of fatal illness.
There will be TLDs that flunk.
For example, it would be interesting to look at how re-renewal rates for .MOBI compared to 1st-year renewal rates.
Andrew Allemann says
That’s a great point, Joseph.
Duhmains says
I like your point also about looking at .mobi, but there was some serious nutty conversations , I’m right-Your Wrong, about .mobi which may have made some people renew domains they would not have normally. Looking at .TV and others might give a clearer picture.
Regarding, “….Rightside has passed a health exam with no signs of fatal illness……” That’s an exam they gave to themselves, hardly reliable when they stand to make money if the exam is “good”.
Joseph Peterson says
@Duhmains,
Almost nobody in this industry will go to the work of corroborating numbers. No money in research. Hence no research.
Eric Lyon says
I’m not very surprised either. It follows the same trend as apartment landlords raising the rent every year. I think the best solution to avoid the constant yearly increases is to opt for multiple years at registration (When applicable). This yearly hike in renewals coming to light now though, will probably result in more people trying to dump their new gTLD portfolios at lower prices to avoid them.