Domain renewal guide
Should you renew or drop a domain?
Treat each renewal as a new purchase. Review demand, evidence, cost, and sale odds before you pay.
Past spending does not make the next renewal worthwhile. Your old cost is gone. Decide whether one more year offers enough expected value for the new fee.
Start with evidence from the last year
Review records for each domain. Use facts. Do not rely on how much you like the name.
- Buyer interest: Count credible messages, offers, and landing-page visits.
- Comparable sales: Find recent sales with a similar extension, structure, length, and buyer use.
- Traffic: Use provider reports. Remove bots and short traffic spikes.
- Revenue: Record net parking income after traffic deductions.
- Buyer pool: List several lawful business uses. One trademark owner does not form a buyer pool.
Calculate the required sale probability
Use a simple one-year test. Divide the renewal fee by your expected net sale proceeds.
Suppose renewal costs $18. You expect $1,200 after selling fees. The renewal needs a 1.5% sale chance to break even before tax, time, and other costs.
$18 ÷ $1,200 = 1.5%
Test the renewal and required sale probability with your own fee and revenue assumptions.
This test does not predict a sale. The result tells you which belief your decision requires. If you lack evidence for a 1.5% chance, drop or reduce the price assumption.
Check the full portfolio cost
A single $18 renewal looks small. Two hundred renewals cost $3,600. Your sales must cover the whole group, including names with no sale.
Enter your portfolio size, average renewal, sell-through rate, and average sale price in the Domain Portfolio ROI Calculator. Run one case with the domain and one case without the domain group under review.
Decision rule
Renew, review, or drop
- Renew: Evidence supports your required sale odds and target price.
- Review: Evidence is mixed. Lower the price, improve the lander, or set a final one-year test.
- Drop: Buyer use is weak, legal risk is high, or required sale odds lack support.
Check value and parking separately
Use the Domain Value Calculator to review name quality and buyer breadth. Use the Parking Revenue Calculator for verified traffic. Do not use an appraisal score as proof of demand.
Write down the reason
Record one sentence for every decision. Include the fee, target net price, required sale odds, and strongest evidence. Review the note next year. This record exposes repeated optimism and helps you improve future purchases.
Next, read the sell-through rate guide and review the DomainCalc methodology.