From the point of view of a PlanetHoster customer, redemption fees are very high. We understand: it is very frustrating to feel like you are paying for nothing! However, when you see that PlanetHoster has no control over this, you will understand better.
If you fail to renew a domain name when asked to do so, it will expire after the “Renewal Grace Period”. You have 30 days in which to request that it be reallocated to you, before it becomes available to anyone on the Web: this is known as the “Redemption Grace Period”.
However, the “redemption fees” incurred are charged by the registries, the commercial companies accredited by ICANN that must maintain a database for each extension. This is why PlanetHoster can unfortunately do nothing about this.
In conclusion, the solution is simple. Let’s renew our domain name as soon as we are asked to do so. It is just a question of good citizenship.
We can use an analogy to better understand redemption fees.
Every year, the Government asks organisations registered with the Registrar of Companies to indicate whether their name is still valid. Let’s say a company fails to inform the Government of a name change. The consequences of this negligence are unfortunate for the government administration, not to mention for the other entrepreneur who might like to use the same name.
Why should others pay for a company that does not take its responsibilities? It is much the same thing with a domain name.