A recent CENTR study delves into the renewal rates, examining how renewals are influenced by domain usage and age.
The research assesses the relationship between domain classification, age and retention, focusing specifically on how web content and registration longevity impact likelihood of renewal.
Using the CENTR signs-of-life crawler, approximately 700,000 domains across 21 ccTLDs were scanned in March 2024, just before their upcoming renewal/expiry date. Domains were classified into high-content (developed websites), low-content (parked sites), and no-content (no web presence) categories. Once the expiry date had passed, renewal rates were analysed within these groups, alongside technical features such as redirects, MX records, SSL certificates, and the domains' age.
Figure 1: Renewal rate by classification group
The study reveals a clear trend: domains with high-content websites have significantly higher renewal rates (90.1%) than those used for parking (78.5%) and those without web content (70.5%) - see chart below. Domain age was also found to play a significant role in renewal likelihood, with a 54.5% renewal rate at the end of the first year, 79.6% by the third year, and up to 95% for domains over 18 years old (see chart below). While age is important, the study found that web content remains a stronger predictor. Domains with developed web content consistently outperform parked domains or domains with no content, even when the latter are older.
Figure 2: Renewal rate by age cohort
This study is one of the first of its kind at CENTR, and while the results may not be surprising to most registries, they should be taken seriously. Registries should be further emphasising domain characteristics as key indicators of domain quality. These characteristics directly influence not only financial predictability but also long-term customer retention, brand reputation, and the overall stability of the domain space. By recognizing the link between domain usage and renewal rates, registries can make more informed decisions about marketing efforts, pricing strategies, and initiatives aimed at fostering higher-value, more engaged domain registrations.
As CENTR’s research becomes increasingly actionable, we are excited to see what the future holds for collaboration among our members in terms of understanding patterns and developing common strategies.
For more information contact CENTR’s Data Analyst, Patrick Myles.
