Learn what the Domain Redemption Period is, why redemption fees are significantly higher than standard renewal fees, and what happens when a domain expires. This guide also explains the domain life cycle and shares practical ways to avoid losing your domain.
Key Takeaways
- Domain Lifecycle – Understand expiry stages.
- Higher Fees – Redemption costs more.
- Renewal Requirements – Contact support if required.
- Avoid Redemption – Renew before expiry.
- Protect Domains – Enable auto-renew.
TABLE OF CONTENTS
- Key Takeaways
- A Domain's Life Cycle
- The Redemption Period In Detail
- Renewing an Expired Domain - Requirements
- Why The Redemption Fees Are High
- How To Avoid Redemption Fees
- The Trustname Guarantee - Never Lose Your Domains
- Rounding Up
The Redemption period or Redemption Grace period is a phase in a domain's life cycle during which it is sent back to the registry. If your domain has expired and has progressed into the Redemption phase, you can still renew it, but you'll need to pay a redemption fee in addition to the base registration fee.
On Trustname, to renew a redemption phase domain, you'll also need to contact Trustname's support to expedite the domain retrieval process. The redemption fee is usually between $80 to150 depending on the registrar and top-level domain (TLD), and can be several times the base renewal fee we charge $14.99 for standard renewals.
What is the redemption phase, and why is the renewal fee so high? Let's discuss why. But first…
A Domain's Life Cycle
We never truly 'own' domains in the actual sense. Rather, they are reserved for us for the period we pay for. Think of domain names as the digital version of leased property!
When the registration period of a domain expires and you don't renew it, it progresses through several phases until it finally gets deleted and becomes available on the market as a new domain once again.
Let's see these phases:
- The Grace Period
The Grace Period is the phase right after a domain expires. During the grace period, the domain is still reserved for you as the owner, and you can renew it at the standard renewal price.
Most domain registrars, like Trustname, grant a grace period of 30 days. Think of the grace period as an extension of your regular registration period, only that the owner has limited control over the domain until they renew it.
- The Redemption Period
If the grace period elapses and the domain is not renewed, it progresses into the Redemption Period or Redemption Grace Period, as we call it at Trustname. During the redemption period, the domain can still be renewed by the last owner, but this will usually cost an extra redemption fee.
At Trustname, we require our customers to send a message to our customer support team to renew a domain in the redemption period. Many registrars place domains in the redemption period on auction too pending when the owner makes an attempt to renew it.
- Domain Auctions
Domain auctions are not a 'domain phase' but are very important to mention. As we stated earlier, many registrars place domains in the redemption phase up for auction.
Some registrars have their built-in auction platforms, while others partner with third-party domain auction platforms. During these auctions, interested buyers bid on the domain name with increasing amounts, and once the auction ends, the domain is given to the highest bidder.
[+] [Callout] Warning Insert title here [+] [Callout] Title/Title with Icon -> Once a domain has been sold at auction, the former owner can no longer register it, and all the previous domain information will be deleted.
- Closeout Auctions
Domains that are not bid on during the primary domain auctions are usually sent to secondary 'closeout auctions'. These closeout auctions are basically reverse auctions where the domain price is reduced daily to incentivize potential buyers to pick up the domain.
It is the last chance for a domain to be bought before it is made available on the market once again.
- Pending Delete
The pending delete phase is the final stage in a domain's life cycle. Domains that weren't bid on during the auctions are then moved to 'pending delete'.
[+] [Callout] Info Insert title here [+] [Callout] Title/Title with Icon -> The pending delete phase usually lasts for 5 days, and during this phase, the domain is locked and cannot be renewed, transferred, or modified in any way.
During the pending delete phase, all the domain's information is purged, and once it elapses, the domain is 'dropped' from the registry database and released back to the public to be registered by anyone on a first come first serve basis.
The Redemption Period In Detail
Now that we know a domain's life cycle, let's take a closer look at the redemption phase. In the redemption phase, on the backend, the domain is sent back to the relevant registry to prepare it for the next phases.
Depending on the top-level domain (.com, .org, .net, etc.), some domains do not have a grace period and enter the redemption period right after expiration. On the other hand, for some domains, there is no redemption period once the grace period expires, the domain is reserved by the registry and can no longer be renewed.
When you let a domain go past the redemption period, it sends a strong signal to the registrar that you are likely no longer interested in the domain, and the registrar has the right to sell it, auction it off, or delete it.
If a domain in the redemption phase is bought during the auctions, the former owner can no longer renew it, and it is transferred to the buyer.
Renewing an Expired Domain - Requirements
Do you have an expired domain and want to know the requirements to renew it?
Let's see them:
- Grace Period
During the Grace Period, the only requirement to renew the domain is that you pay the standard renewal fee that's it. Since the registrar still reserves the domain for you during the grace period, it is still yours.
During the grace period, you still control the domain and can transfer it out to another registrar.
- Redemption Period
For a redemption period domain, you'll be required to pay the standard renewal fee as well as a redemption fee. At Trustname, we also require our customers to send a message to our support team so we can prepare their domain and save it from being sold off.
The exact requirements and fees for renewing a redemption phase domain will depend on the registrar. The redemption fees are typically between $130 to 150 and some registrars charge up to $200.
Given that most domains are priced between $14 to 20, the redemption fees can seem excessive. Here's why they are that high.
Why The Redemption Fees Are High
The redemption fee charged usually includes:
- Registry Fees
The Internet Corporation for Assigned Names and Numbers (ICANN), the regulatory body in charge of policies guiding domain names, requires a fee to be paid to the registry to restore a domain in the redemption phase to your registrar. This fee cannot be waived.
The registrar then passes this fee to you. Domain registries act as extensions of ICANN and are in charge of maintaining the database of domains for particular domain extensions.
- Reinstatement Fees
In addition to the fees charged by the registry, most registrars also charge a reinstatement fee to process the reassignment of the domain name to you. When a domain is left to expire and goes past the redemption period, the registrar prepares the domain for the pending delete phase.
When you try to renew the domain, the registrar will need to reverse any changes made so the domain is yours once again.
- Standard Renewal Price
And finally, the redemption fee also includes the standard registration fee that you'd have paid to prevent your domain from expiring in the first place. You can choose to pay the renewal fee to cover a 1 to 10 year period.
How To Avoid Redemption Fees
Redemption fees are typically several times the standard registration fee, and as you'd have figured by now, it's better to avoid paying them in the first place.
What's more? If your domain is a premium domain and it gets to the redemption phase, there's a very high chance that it gets picked up during domain auctions by other interested buyers, so you should never risk it.
- Renew Your Domain Before It Expires
The best way to avoid paying redemption fees is to renew your domain name way before it expires. And if your domain has already expired, you should renew it as soon as possible while it's still in the grace period.
So that you don't have to manually monitor the expiry dates of your domains, you should always enable auto-renewal and ensure that your payment method is funded so the payments go through.
At Trustname, we will send several renewal notices ahead of when your domain will expire if we can't charge your payment method.
- Wait Till The Domain Gets Dropped
On the other hand, if your domain has already entered the redemption phase and you don't want to pay the redemption fee, you can wait until the redemption phase expires and try to buy the domain during the closeout auctions or after it drops.
A dropped domain is one that has gone through all the expiry phases and is 'dropped' from the registry database so that anyone can register it through any registrar on a first come first serve basis.
We don't recommend this though because there's no guarantee that someone else won't register it before you can.
The Trustname Guarantee - Never Lose Your Domains
Many of our competitors have broken renewal processes that put your domains at risk. From renewals not being processed despite being paid for to placing expired domains on auction even while they are still in the Grace Period.
On other platforms, customers also complain about finding their parked domain names deleted from their accounts due to expiry, but that they never received any renewal notifications.
At Trustname, we understand how valuable your domain name is and have set up several measures to ensure you never put your domains at risk or lose them due to accidental expirations.
If you have auto-renew enabled and your payment method fails, we will send several emails to prompt you to review your payment. We also give you a 30 days grace period to give you enough time. And if your domain has entered the Redemption Period, you can still renew it quickly, but you will need to contact us.
Rounding Up
The redemption phase is the stage in a domain's life cycle right after the grace period. During the redemption phase, the domain is no longer reserved for you and may be placed on auction and sold off.
During the grace period, you can renew the domain for the standard price, but during the redemption phase, you will have to pay a redemption fee on top of the standard renewal fee for the domain to be returned to you.
If you have a high-value domain, you should never let it get to the redemption phase in the first place, and if it has, you should pay the redemption fee as quickly as you can.
At Trustname, we have designed several fail-safes and will always keep you in the loop to ensure you never lose your domain.
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