I have noticed a small trend in 2016 where people are trying to auction off and practically unload New gTLD domains with expensive renewals. It was easier to notice in short domains namely 1-letter domains.
Typically a seller would auction these domains before their 1st anniversary. 5 of the domains below were sold a few months before they were up for renewal or even a couple of weeks before.
Most of the domains were sold at auctions at Flippa or Sedo. Here is a sample:
(All sales information provided by Sold.Domains)
Only the seller of the domain name e.guide stated the renewal price of the domain name in the auction description: $440. (not sure about e.financial and x.recipes)
This is what the Flippa description wrote: “Only $440 premium renewal each year”.
I don’t really agree with the “only” part but anyway at least he disclosed the renewal fee.
The seller of e.toys replied to a comment at Flippa stating the renewal price: “The renewal is 472 USD at the current registrar, but I know NameSilo and others offer a cheaper renewal.”
Sedo conveniently does not have an option to display a domain name renewal price in auctions.
These domains above are all from Donuts extensions. Donuts has some modest renewal prices compared with the crazy pricing of other new extensions like .blog. Many other registries have prices that start from what Donuts’s most expensive domains cost per year. I guess domainers will not even touch those…
But still, renewals of e.g. $460 per year are not sustainable by any domain name investor. So this is probably the reason they are trying to unload the domains. But the problem it is usually other domainers that are buying these domains at auctions because they seem like a good deal. And some are really a good deal until you see the renewals:
So you can see from the cheap auction prices and the high renewal fees that the sellers are probably only looking to break even. Personally anything above $100 is a deal breaker and even domains that have $60+ renewals are really scrutinized.
BTW g.company sold to an end user gcompany.nl. Not sure what the company thinks of the $460 renewal price.
On the other hand i.vip just resold for 6 figures by a domain investor and the domain 1.store was sold for $30,000 by the registry. But these domains actually have low renewal prices!