If you are a business owner or an IT specialist, you may be owning a handful of domain names that are not in active use. You may have to frequently make a decision as to whether you should renew the domain name on a regular basis when you get the renewal notices for them. Here are some questions you may ask yourself before you decide whether you should renew your domain name or not.

Will the domain name be in use?

If the domain name has a live website on it and it is in use or you plan to develop it, then most likely you should renew the domain name and you should renew it at least one month before its expiration. Even if the active domain name expires and goes into redemption period where you need to pay a one-time redemption fee to renew it, you should pay the fee and renew it and not risk losing the domain name. We previously ran into domain name owners trying to avoid the redemption fee ($60-$120) and re-register the domain name after it is released to general registration, only to find out that the domain name has been taken.

So renew your domain name well ahead of time and keep the domain name at a minimal cost if the domain name is ever to be in use. You can read our blog What happens after a domain name expires to learn about domain expiration process.

Does the domain name have value?

Millions of dollars worth of already-registered domain names are bought and sold each month. If you decide not to use a domain name, you may consider selling it if it is of value. A domain name is likely to have value under the below circumstances:

• originally registered before 2000
• include a keyword that people use to search in a search engine
• have a few characters such as 3-letter or 4-letter
• have a considerable amount of backlinks

Is it a loss to you if someone else uses it?

You may have a number of domain names that are similar to your primary website domain. You do not use them but it will be dangerous for your primary website if someone else were to take the domain names. Protection of your brand and online identity is essential for any business online. Securing a variety of names will inevitably boost your brand presence and prevent others from hijacking your company’s presence. Before you let go of the domain name, keep in mind that your competitors may be waiting to snap it.

Overall, registering and renewing a domain name is inexpensive and it is worth the money if the domain name is of any use to you, or to someone else.