A domain redemption fee is the cost of reclaiming a domain name that has expired and subsequently entered a redemption period. When a domain name passes, it doesn't immediately become available for others to register. Instead, it goes through several stages, including the "redemption period."
During the redemption period:
- The original registrant (the person or entity who initially registered the domain) still has the opportunity to renew the domain name.
- The domain is temporarily removed from the active domain pool, meaning it cannot be used or registered by someone else.
- Registrars often charge a redemption fee to renew a domain name during this period, on top of the regular renewal fee, as it involves additional administrative processes to recover the domain
Suppose the domain owner chooses not to renew the domain during the redemption period. In that case, it might then enter a phase where it becomes available for anyone to register again, or it could be deleted permanently.
It's essential to renew your domain names to avoid redemption fees.