In 2022, the revenue generated per expired domain by the company was lower.
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Tucows, a registrar, auctions off domain names that its customers do not renew, with GoDaddy being its primary partner for expired domains. The annual report explains that there was an increase in expired domain revenue in 2021, followed by a decline in 2022. This can be attributed to the number of expiring domains and the average selling price.
In 2021, the company experienced a boost in value-added service revenue, primarily due to a significant volume of expired domain names registered in the past year being available for their expiry streams. This resulted in favorable proceeds at auction and revenue growth for value-added services.
However, in 2022, while there were still high expirations, the value-added service revenue decreased. This was mainly because the value of domain names sold at auction declined compared to the previous period. Nevertheless, there was still revenue generation for value-added services, albeit at a slower rate.
Tucows does not provide specific figures on the revenue generated from the typical expired domain. However, it is believed that most registrars receive an average of low single-digit dollars per expired domain. It would be interesting to see recent data on the average revenue per expired domain in the industry.
It's fascinating to observe the dynamics of the domain name market and how it impacts revenue for companies like Tucows. The fluctuations in expired domain revenue highlight the influence of factors such as registration trends, renewal rates, and the overall value of domain names. As we continue to navigate the effects of COVID-19 on various industries, it will be intriguing to see how the domain market evolves and whether the trends seen in 2021 and 2022 persist in the coming years.