How Is This Legal? Domain Related

by dv8
26 replies
I went to renew a domain of mine with GoDaddy. It's currently in the redemption period.

They have an $80 redemption fee!!

Please save the "you should have renewed it then" retort. Obviously yes, I should have. But I didn't. It's not that big of a deal to me anyway. Not worth the extra $80 to redeem it. I'll take my chances and let it fully expire and then get it for $10.

Can someone please fill me in on the logic behind this. Because right now I see it as one week ago is was $80 less to renew the domain. Obviously they can charge whatever they want. But this just seems a little ridiculous. There are no regulations for this type of thing?

P.S. Let this be a lesson to anyone who does want to renew their domain. Do NOT let it go into the redemption period. Because lube is not included with the $80 fee.
#domain #legal #related
  • Profile picture of the author cashcow
    Yes, they basically own the domain now and can charge whatever they want.

    Believe it or not $80 could be a steal depending on if the domain gets traffic, has backlinks, or if the name is desirable.

    You wouldn't believe what some of the domains that were not renewed with no traffic go for over there. Then again there are a lot that just get dropped when no one is interested.

    Check out the auctions section over there sometime - it's a real eye opener.

    Lee
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    Gone Fishing
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    • Profile picture of the author Greggg
      Yeah, they've done it to me with domains that were set to auto-renew but didn't.

      I used to have a big hosting plan and hundreds of domains with Godaddy. I have neither now, because they are a crappy company with abysmal customer service. Stay away.

      Gregg
      PS - Great commercials for guys, though.
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  • Profile picture of the author Lou Diamond
    Hello,
    if you need the domain pay the money,if you wait for it to expire you can wait for quite
    awhile until it is released back to the public.
    Lou
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    Something new soon.

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  • Profile picture of the author filiks
    i think the best thing to do is pay the money i could be worse you know
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  • Profile picture of the author sbucciarel
    Banned
    Of course it's legal. The age old quote, "You snooze, you lose" applies. They give you a lot of opportunity past the expire date to renew it at the normal price.
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  • Profile picture of the author Lightlysalted
    It's a classic sales ploy, sell it cheap upfront and then charge more for renewl knowing that the owner may not want to run the risk of letting it expire and have someone else purchase it. I avoid go daddy like the plague, it's cheap at first but the renewl costs are crazy
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    • Profile picture of the author Richard Tunnah
      Originally Posted by Paid Surveys View Post

      It's a classic sales ploy, sell it cheap upfront and then charge more for renewl knowing that the owner may not want to run the risk of letting it expire and have someone else purchase it. I avoid go daddy like the plague, it's cheap at first but the renewl costs are crazy
      It costs exactly the same to renew as it does to buy the domain provided you renew within the renewal period. It gets dearer after that as the domain company own the domain as already stated..this is standard mode operendi for pretty much all domain companies.


      Rich
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  • Profile picture of the author Jon Tees
    Something that has bothered me about Godaddy is the fact that you can only register a domain for up to eight years. That's a little odd considering the fact that other companies allow you to easily register domains for ten years. Its a tough call as it relates to your predicament. If the domains are popular you might want to consider paying the $80 to prevent others from snatching them out from under you and cashing in on all of your hard work. I use godaddy myself. And while I can't speak for their hosting, as I merely forward domains to my blog and affiliate sites. I can say that in my experience customer service has been good (not great) but could have used some improvement. You may e-mail them about something and get different responses back from several different people but they have always resolved whatever issues I have had . But they can forward a domain pretty quickly (within an hour or so) as opposed to some smaller companies that may take up to 72 hours to forward domains, and on top of that charge twice what Godaddy charges for .com's for everything across the board.
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  • Profile picture of the author dv8
    Thanks for the replies.

    As I said, I don't really care about it that much. Not enough to pay $80 for it. It was just a domain I bought last year and never did anything with. Shocker, I know.
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    • Profile picture of the author Kay King
      They aren't doing anything TO you. You are basically renting the use of a domain and as long as you pay on time the fee is low.

      If you pay late - think of it as a "late fee". A friend of mine had to pay $150 a while back when she forgot to renew the domain for a profitable site.

      At least you were able to get it back.

      kay
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      Saving one dog will not change the world - but the world changes forever for that one dog
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      • Profile picture of the author dv8
        Originally Posted by Kay King View Post

        They aren't doing anything TO you. You are basically renting the use of a domain and as long as you pay on time the fee is low.

        If you pay late - think of it as a "late fee". A friend of mine had to pay $150 a while back when she forgot to renew the domain for a profitable site.

        At least you were able to get it back.

        kay
        That's a good way to look at it. Thank you.
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  • Profile picture of the author Money on the Side
    I think godaddy puts expired domains into their auction. I just purchased one there that had expired through godaddy as the registrar, for $9.
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  • Profile picture of the author seasoned
    Despite what people say, this DOES stink, and amounts to extortion. And NO, godaddy does NOT own the domain unless they pay for it!!!! I'm unsure about the exact happenings behind the scenes, but they have about 5 days before they have to pay for it again. The cost is likely somewhere around $6(for .com. Others may be more or less). Maybe THIS is part of their business model.

    Selling ONLY domains as many seemed to imply, would likely lead them to bankruptcy, they just never charged that much. The startup costs WERE, and may still be, VERY high, and are paid BEFORE they are approved. That is why MOST don't become a registrar at the level of godaddy. Don't forget, they DO pay the respective registries for the domain names. But their hosting services, though they APPEAR cheap, really aren't(Just look at bandwidth, etc...). They have the private registration service which is expensive and PURE PROFIT, and just THAT makes domain names as a loss leader seem to be a good business model.

    They THEN "park" expired domain names on a page that makes some money, and sells their products.

    They probably pay the $6, or whatever, because they figure YOU probably worked to drive traffic, and the parked page makes money.

    Heck, many registrars that really don't register the name directly, but use another service(like wwD, godaddy, enom, directi, etc...) do the SAME, and you KNOW they have no special abilities. Anyone remember how namezero was? http://www.net4tv.com/voice/Story.cfm?storyID=2536

    Still, I have heard horror stories about them providing arbitrary quotes, and many were around $250. $80 is CHEAP by comparison. C'est la vie.

    Steve
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  • Profile picture of the author Dennis Gaskill
    GoDaddy isn't even the most expensive registrar when it comes to redemption. 000domains charges $100 to renew late. I figured I'd let it expire and then just buy it again, but someone else beat me to it. You could try that, but be prepared to lose it at the same time. If you really want to keep it, you better pay the fee.
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    Just when you think you've got it all figured out, someone changes the rules.

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  • Profile picture of the author davezan
    Originally Posted by dv8 View Post

    But this just seems a little ridiculous. There are no regulations for this type of thing?
    Sure it seems ridiculous. And there is some regulation, though some folks don't
    think it's probably enough.

    First, refer to the link below to understand a domain name's "life cycle" that is
    mandated by ICANN:

    ICANN | Life Cycle of a Typical gTLD Domain Name

    Except for "extenuating circumstances" like legal disputes, all registrars follow
    that. Especially if it's a .com.

    Next, registrars pay the Registries a higher fee to redeem a domain name than
    renewing them when expired. I should know as I worked with a registrar in my
    previous life.

    Also, credit card companies charge a finance fee if you pay late, car vendors
    charge for every hour or day you don't return the car on time, some libraries
    have a fee for returning a book late, etc. Is any of that extortion as some folk
    seem to conveniently believe?

    Why the seeming resent?
    Signature

    David

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    • Profile picture of the author seasoned
      Originally Posted by davezan View Post

      Also, credit card companies charge a finance fee if you pay late, car vendors
      charge for every hour or day you don't return the car on time, some libraries
      have a fee for returning a book late, etc. Is any of that extortion as some folk
      seem to conveniently believe?

      Why the seeming resent?
      Well, NOBODY is arguing against A charge, or even a HIGHER charge, but this IS excessive! People ARE fighting to lower CC late fees, etc... But a late payment DOES limit their capital! And the late charge for a car rental may seem excessive, but it is one less car they can't rent out. In both cases, it DOES cost the company potential at the very least. The domain name companies lose NOTHING!

      Steve
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      • Profile picture of the author davezan
        Originally Posted by seasoned View Post

        The domain name companies lose NOTHING!
        Except the time and effort spent to administratively redeem a domain, maybe.
        Time and effort that usually can be better spent working on other issues far,
        far worse than that.

        Don't some of us want to be compensated to do something for someone? Heh.
        Signature

        David

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        • Profile picture of the author seasoned
          Originally Posted by davezan View Post

          Except the time and effort spent to administratively redeem a domain, maybe.
          Time and effort that usually can be better spent working on other issues far,
          far worse than that.

          Don't some of us want to be compensated to do something for someone? Heh.
          Give me a break....

          For YEARS the registering "registrar", such as godaddy, has ben required to maintain the contact information. That is OBVIOUSLY held for a LONG time(Who knows HOW long?), or until the domain is reregistered. And even the old ANTIUQUATED networksolutions system could be, and WAS often AUTOMATED!

          We ARE talking about COMPUTERS, after all. And charge too much for a domain, and it may just be a waste.

          By contrast, to use your old examples, some people are OFTEN late paying CCs, and only pay the bare MINIMUM. MANY finance firms REPACKAGE debt. If people don't pay consistantly, they(the bank) have to pay a higher interest rate. After a certain point, they may be called JUNK! Remember milkin? Michael Milken - Wikipedia, the free encyclopedia THAT is what HE sold! If they are LUCKY, they can sell off the whole business, but sometimes they can't.

          Sometimes rental companies fall short on inventory, and are forced to upgrade people. HECK, I once got a van, EASILY worth over $200/day(Somone told me $250!), for less than $20! Such upgrades happened to me no less than 5 times. So the people could lose income on TWO cars! They couldn't rent one because it was out, and the had to give me a vehicle someone else would have paid a LOT more for. Though I could get by with a van, someone wanting a van might not be able to get by with an economy car.

          Steve
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  • Profile picture of the author TristanPerry
    This is normal and all registrars do it, not just GoDaddy.

    It's annoying but once it's not been renewed and has slipped into the redemption zone, a mid-high $xx fee is regulation.

    Just the way it is I guess.
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    • Profile picture of the author SageSound
      Originally Posted by TristanPerry View Post

      This is normal and all registrars do it, not just GoDaddy.
      Au contrair!

      I use NameCheap. Once a domain name expires, it falls into a "reactivation" list, and it costs the same to renew it as it would otherwise. ICANN specifies it remains in that state for 30 days, but they dump them out of your account about 3 days early. If a name has been removed from your account, but hasn't yet be transferred back to the primary registrar, they'll still let you have it for the same renewal fee.

      Once it HAS been sent back, it's a lot more expensive. I think around $100.

      So while MOST registrars might charge a "late fee", NOT ALL do. (Just like some will seize a domain name from you if they get spam complaints, while others wont.)

      The moral of the story is... choose your registrar carefully.
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      • Profile picture of the author Tina Golden
        All of my domains are registered with GoDaddy right now and I've never had anything but good luck with them and their customer service. I start getting emails about renewals several weeks before expiration so I would have no one to blame but myself if I lost a domain due to ignoring their warnings.

        Tina
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  • Profile picture of the author Jay Jennings
    To add on to what David said, NameCheap is the ONLY domain registrar company that treats people right, in my opinion. I think because it was started by a domain speculator -- so he knows what sucks and what doesn't. =

    I've been saved by NC a few times when I didn't have my reminder set up right -- and was still able to get back the domain name for ~$9 a couple weeks after it expired.

    Jay Jennings
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  • Profile picture of the author James Campbell
    Honestly, this is what happens when you're not on top of your stuff. GoDaddy is doing nothing wrong, this happens with ALL registrars, not just GoDaddy.

    If a domain is really important to you, you should have all of the information for it be up to date, if you don't, that is on you and nobody else.

    I've lost domains like this, and it is was my own fault.

    Stay on top of your expiration dates next time. It is the same with hosting, people let it lapse and then are mad that their website went offline, they should look in the mirror before blowing up at the service provider.

    James
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  • Profile picture of the author James Campbell
    Namecheap isn't even a registar by the way, they are a reseller for enom.

    James
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  • Profile picture of the author greff
    I have many domain servers. One of them went belly up a couple of years ago (forgot the name) and I lost about 10 domains, but that is very rare. Those domains were pretty much throwaways except for a couple. Funny thing is that I am the mailing list for two of them that were bought up and I still get emails from my old domains! LOL

    I've had pretty good service from GoDaddy and NameCheap. Had a hassle with another one, but I won't mention it because I think everyone has problems. Otherwise it's been a good server so far.

    Frankly, I think if the domain in question here was a really good one, it would never have been allowed to expire by the owner, but even that would not surprise me either. I am glad that not too many of my domains renewed when I spent two weeks in the hospital a few years ago.

    Now about eBay, don't get me started.
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