The Domain Name Life Cycle and When to Buy Valuable Domain Names

Any person looking to buy or sell domain names must be familiar with the life cycle of a domain name.

Understanding how new TLDs are introduced and when domain names expire can help you secure a great domain name. Also, domainers can take advantage of preorders and backorders to register valuable domain names, which can then be flipped for a profit.

To fully understand these concepts and use them to your advantage, you’ll need to understand the life cycle of a domain name.

Introducing New TLDs

The popularity of .COM and .NET domain names have made it difficult for customers to register the domains they want. In response, new TLDs like .GAY, .INFO, etc. have been launched. Now there are over 1000 TLDs, many of which have been released in the last decade. Before we dive into the life cycle of domain names, let’s learn how new TLDs are brought into the domain market.

When launching a new TLD, there is a strict protocol that must be followed. We’ve recently gone into great detail about this topic and how you can preregister domain names, but here is a quick recap.

There Are Three Phases to a TLD Launch

Registries typically launch new TLDs in three phases which are Sunrise, Landrush/Early Access Program (EAP), and finally General Availability. Releasing TLDs in this manner benefits trademark holders, businesses, and the registries. Here’s how it works.

The Sunrise Phase Protects Trademark Holders

The first phase of a TLD launch allows trademark holders the ability to preregister domains that are the same or similar to their registered trademark. During this time, only those with a registered trademark record in the Trademark Clearinghouse may preregister domain names. The reason for this phase is to help companies safeguard their identity online and their brand. It typically lasts 30 or 60 days and is mandatory when launching new TLDs.

Landrush/EAP Phase Allow Preregistrations at a Premium

The Landrush/EAP phase is optional when launching new TLDs. It’s up to the registry to decide whether or not to use this phase or skip it and go straight to the General Availability.

During this period, domain names can be registered at higher than normal prices and are available to everyone. Buyers that are eager to register a domain name and willing to pay more than General Availability prices will buy domains during this time.

There are a couple of ways that this phase works. Some use a first-come, first-served system, others will use a dutch auction. It’s all up to the registry to decide. Learn more about domain name Landrush/EAP in our previous blog.

General Availability

Finally, new TLDs enter General Availability. This open-ended phase means that TLDs have fully launched and are available for domain name registrations on a first-come, first-served basis.

If you register a domain name during a new TLD launch or buy domains during General Availability, you might be surprised that the domain is not yours forever. Rather, it’s registered to you for a limited period.

The Domain Name Life Cycle

Photo source: ICANN.ORG

Whether you own a single domain and wish to keep it registered, or you're a domain reseller looking to buy domains and place backorders, the life cycle of a domain name is imperative to understand. There are grace periods in place for people who may have forgotten to renew a domain name, and also a pending delete phase which resellers would take note of if they want to place a backorder. During its ‘life,’ a domain name will experience five different phases:

1. Available domain names
2. Registered period
3. Expired - Renewal period
4. Redemption grace period
5. Pending delete period

Let’s break down each of these periods.

Available Domain Names

The first phase of every domain name’s life cycle is its availability. You can buy and register domain names from registrars like Hexonet. Using Hexonet’s advanced domain name search functionality, you can find and purchase available domain names.

Once a domain name is registered, it moves to the next phase.

Registered Period

Registration periods for domain names last between 1 to 10 years. During this period, the domain name is active. You can build a website, use the domain for a parking page, or hold onto it with hopes that it increases in value, then sell it for profit.

Nearing the end of the registered period, domain registrars will notify you well in advance before the domain is due to expire. You can then renew the domain if you’d like. Or, to help prevent your most important domains from expiring, you can set up auto-renewals. Failure to renew a domain name will cause it to expire.

Expired - Renewal Grace Period

After the expiry date, you still have a few chances to renew the domain. The Renewal Grace Period lasts up to 30 or 45 days. This is the last time you’ll be able to renew your domain at a normal rate. Domain name transfers to a different registrar during this time are also possible. Should you choose not to renew a domain during this period, it will enter the Redemption Grace Period.

Redemption Grace Period

This phase lasts for 30 days. During this time, most registrars delete all domain information. This means your website and email will go down. A domain owner can still get their domain back, however, it will be at a premium cost. If the domain is still not renewed during the Redemption Grace Period, the domain enters the final phase of the life cycle, Pending Deletion.

Pending Delete Period

At this point, the domain owner will not be able to redeem their domain. This phase lasts for five days. After this, the domain will be deleted and made available for the public to register again. Many refer to this as a “dropped” domain.

From the time a domain name expires in your account to the time it’s made available to the public is 65 to 80 days, giving domain owners plenty of time to decide if they’d like to renew it.

Domains that are dropped present opportunities for resellers to catch and register them before anyone else with our backorder domain names system.

Backorder Domain Names

Backordering domain names allows you to register domain names right after they’ve been dropped. At Hexonet, we’ve built a powerful backordering system that acts quickly so you can snag the domain names you really want. You’ll also be able to keep track of your desired domain name status, so you’ll know when it expires and becomes available or if the owner renews it during one of the grace periods.

Our backorder system also includes a proprietary rating tool to help you decide which domains have the potential to be flipped for a profit. Searching for and placing backorders is completely free as payment is only required upon successful backorder registration.

From preorders to backorders, Hexonet has the tools you need to register the domain names you want. To get started buying domain names and placing backorders, login to your Control Panel. Should you have any questions or require technical support, send an email to [email protected].