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Let's say I'm considering launching a website under a premium gTLD. Donuts is the register of this particular domain suffix.

I'm given to understand from this article and this blog post that Donuts can effectively charge what it wants when the time comes to renew a premium domain. Moreover, if the domain accrues in value due to the work I have done to generate traffic, this value can be partly siphoned off by Donuts in the form of increased renewal fees. In effect, a "ransom" situation.

Is my interpretation of this situation correct, and if so, why would anyone ever risk operating a popular or valuable website under a premium domain? (And hence by that logic, doesn't the designation of a domain as "premium" automatically make it less desirable, not more?)

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In my experience, first year premium price is mostly lower to make you consider but still quite high. Next year, when you pay renewal price, it will rise to full premium price and stay the same onward.

For example you can get some domains at $50 and renewal price is $3750. A good registrar will make this clear during the order, but price should stay $3750 next year, in my research I did not find any evidence of rising the price over full premium over time.

  • Could the register raise the renewal price though if not mentioned in the registration contract and it felt so inclined? – Escher Sep 14 '15 at 11:46
  • @Escher My personal opinion is that it is highly unlikely, it would send a very bad message to other customers, it would also be a by the book example of bad business practice, if price would rise with your visitors count. I encourage you to ask the company on the contract you have agreed to, what is their policy and how they see the renewal pricing, have it from the source in writing. – Mike Sep 14 '15 at 13:43
  • Will do. Haven't agreed to anything yet (I've never owned one of the new post-2014 gTLDs), just want to know what I could be getting into. – Escher Sep 14 '15 at 14:27

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