Also called premium renewal fee · premium renewal pricing
Premium renewal, explained
Registries price names in tiers. Some premium names carry a high price only in the first year and then renew at the standard rate; others carry the premium on every renewal. ICANN's base agreement for new generic extensions requires uniform renewal pricing unless the registrant expressly agreed to higher renewal pricing, clearly disclosed, at initial registration, and it requires 180 days' notice to registrars before renewal prices rise. Registrars show the tier at checkout, and anyone who later buys the name inherits its renewal price.
Always check the renewal price, not just the purchase price, before buying a premium-tier name. A name renewing at several hundred dollars a year is a holding cost that compounds and a sales obstacle, because every future buyer must accept it too. The common mistakes are buying a newer-extension name at auction or in the aftermarket without checking its tier, and confusing registry premium with aftermarket premium, where an investor sets a high asking price but the name renews at the normal rate.
Example. Before bidding on a one-word name in a newer extension, an investor checks the registrar's checkout page, sees it renews at a premium tier every year, and drops it from the list.
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Education, not financial, legal or tax advice. Domain investing is speculative and most domain names never sell. Read the disclaimer.