The domain name for your website is a critical part of the online identity for your business. It has to be protected in the same way that a physical business protects their brand. You must renew the registration of your domain periodically. The failure to do so means that someone else can purchase the domain and try to sell it back to you at a much higher rate.
Many horror stories exists about something known as domain squatting. This happens when an individual or a company purchases a domain for the sole purpose of reselling it at a huge profit.
A domain is the name and address of your website. YOURSITE.com is an example. The part after the dot is called an extension, and there are thousands of them including .us, .biz, .net, and .org. Literally millions of domains exist on the Internet, and many of them are owned by domain squatters.
The mentality of someone who buys and parks domains isn't so different from that of a real estate speculator. They buy Internet real estate - a domain - in the hopes that its value will rise. Squatters are always on the lookout for expired domains, especially those that have been developed and are aged.
When this happens, the domain that would normally cost you $15 per year to register can suddenly cost $2,000. If you have previously been doing business under this domain, all of your traffic will now be diverted to the new owner. It's a nightmare scenario that too many website owners face.
One way to potentially avoid such a disaster is to register your domain for more than one year at a time. You can register it for two, five, or even ten years at some registrars.
Some registrars have now begun to charge premium rates for some domain names to deter squatting. This can also cause you to have greater expenses if you are setting up a new domain name that is popular. For more information click here https://www.reddit.com/r/web_design/comments/8vu9ck/godaddy_asks_for_2000year_for_the_domain_name_i/.