GoDaddy Auction closeouts now start at $50.
It’s February, and that means GoDaddy has changed the pricing for closeout domain name auctions.
Expired domain names that don’t receive bids move to closeouts, where a Dutch auction begins. Previously, these auctions began at $11 and dropped by $1 a day until they hit $5.
Now, auctions begin at $50, then $40, $30, $11, and $5. Buyers also pay the domain renewal fee.
The new pricing should better capture the value of domains, as many buyers avoid bidding in the regular auctions because it attracts the attention of other bidders. In theory, it could also give those without API access and development resources a better chance of getting domains if bulk buyers wait until the price drops.
But that might not happen. On our Domain Name Wire Live Clubhouse chat yesterday, Shane Cultra said he doesn’t think it will change behavior. He thinks the same people who buy at $11 will now buy at $50.
Only time will tell.