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GoDaddy is closing an expired domain “loophole”

by — Expired Domains 15 Comments

Last second backorders will no longer circumvent closeout process.

Auctions for expired domain names at GoDaddy can get competitive. With no backorders required, domain names can go from $0 to hundreds of dollars even when no bids are placed until the last few minutes.

This is complicated by the closeout process. If you bid on a domain in the live auction it will likely be bid up to over $100. If you can snag it when it goes into closeouts then it’s only $12 plus the renewal fee.

Unfortunately, there are lots of people with API access and computing power who treat the closeout like a drop. They start sending calls to buy the domain as soon as the regular auction closes.

But there has been a loophole that has helped people like me. If you place a backorder the second an auction closes, you can win the domain for the cost of a backorder before it gets placed in closeouts.

For the past year or so, I will closely watch auctions and be ready to bid if someone jumps in at the last minute. If the auction ends with no bids, I’ll place a backorder at the second the auction ends.

Historically, this has helped me scoop up a lot of domain names. About 95% of the domains that make it through the auction with no bids. But it’s gotten tougher this year.

Starting in January I noticed a lot of people placing backorders with a few minutes left in the auction. I’m not sure why they were doing this because it triggers a $10 bid and then everyone can pile in.

Then a few weeks ago I noticed that many of the domains I was backordering at the last second were getting scooped up by other people. My success rate went from 95% to about 25%. My guess is that they automated the process for backordering to get the timing just right.

While the backorder loophole was nice while it lasted, GoDaddy is about to eliminate it.

Joe Styler explained this change in a post on NamePros this week.

So now the options are either bid regularly and fight with everyone else, or program a system to snipe domains the minute they hit closeouts.

Well, it was fun while it lasted. At least now I won’t log into GoDaddy to place a backorder, only to be frustrated when someone places a last minute bid.

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Name.com expired domains are now on GoDaddy

by — Expired Domains 7 Comments

Expired domain deal came with portfolio acquisition last year.

In October 2017, Donuts sold about 200,000 domain names to GoDaddy. These domains were in a portfolio that Donuts inherited when it acquired Rightside.

GoDaddy was after more than just the domains. It also wanted access to Name.com’s expired domain name portfolio.

Those expired domains were flowing through NameJet. That made sense because Rightside, which owned Name.com, was a 50/50 owner in NameJet. But Rightside sold that interest to Tucows as part of the sale of Enom.

GoDaddy got the expired domain deal along with the portfolio acquisition. A Domain Name Wire reader noticed that the Name.com domains have now started to flow through GoDaddy’s expired domain auctions.

Name.com joins Endurance International Group and Tucows in sending their expired stream to GoDaddy. Yes, Tucows, despite being a 50/50 owner in NameJet, resumed sending its domain names to GoDaddy after a test with NameJet.

There’s only one explanation for that: GoDaddy auctions must have significantly outperformed NameJet.

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Please, GoDaddy, don’t add watcher data to expired domains

by — Expired Domains 47 Comments

Disclosing the number of watchers could change how people use GoDaddy Auctions.

Alvin Brown recently discovered data that GoDaddy is sharing for its closeout expiring domain name auctions.

It’s valuable data including the domain age, links to search results, etc. But one thing is troubling:

Showing how many people are watching a domain name could fundamentally change how GoDaddy Auctions works if it is extended to all domain name auctions. It will make it less convenient for users.

One of the things I like about GoDaddy Auctions is how I can add a domain to my watch list without tipping others off to my interest in the domain name. Once a week I filter the inventory and “watch” it so that it gets added to the GoDaddy Investor app. I can then bid on the go from my mobile phone when auctions come to a conclusion.

Compare this to how auction services that require a backorder work. Placing a backorder draws attention to domain names, so people wait until the last minute to place backorders. It’s inefficient unless you use an API or bot to place backorders.

If GoDaddy were to start sharing watch data on all expired domains, I would no longer be able to load up all of the domains for the week ahead of time. You can’t bid on domains in the app unless you’ve watched them or already bid through the web interface. So I’d need to be in front of my computer when auctions come to a close, and I’d need to have a list handy with closing times. This would significantly reduce my bidding activity.

Given that anyone can bid on an expiring auction at any time (compared to other services that require a backorder), the watch data isn’t necessary as a bid will trigger “notice” of interest in the domain.

I understand why watcher data makes sense for closeout domains since they are reverse auctions, but they would be bad news for regular auctions.

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3 Tips to Discover Expired Domains Available at Hand-Registration Fee

by — Expired Domains 6 Comments

[Editor’s note: I’m pleased to have Alvin Brown join as a contributing author on DNW. Brown is a fellow Austinite, domain investor and digital marketer. He posts great tutorials at KickstartCommerce.com, and will be writing posts for DNW that will help domain investors.]

Each day I spend my fair share of time reviewing a vast number of expired domain auctions to share with others and bid on personally.

Although I review a number of aftermarket platforms of expired domains daily, I often use GoDaddy’s aftermarket platform.

I actively bid and secure a growing number of competitively-priced expired domains through GoDaddy’s aftermarket platform every week.

If you use GoDaddy’s aftermarket platform to bid and purchase expired domains, then you’ll want to continue reading as I share 3 tips to discover expired domains available at hand-registration fee (hand-reg fee).

If you are not familiar with the GoDaddy Aftermarket, please allow me a moment to help you get acclimated. [Read more…]

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GoDaddy expiration policy fixes annoying clawbacks

by — Expired Domains 9 Comments

Domain names can no longer be renewed or transferred after they are won at auction.

One of the biggest gripes about GoDaddy expired domain name auctions is that registrants can still renew or transfer their domains after an auction closes. Domain investors spend time bidding on domains only to have the domain pulled out from underneath them after winning and paying. Sure, they get the refund, but it was a waste of time. Some domainers complain that domain owners use the auction as a free domain appraisal before transferring the domain to another domain registrar.

Yesterday, GoDaddy sent a notice to Premier Services customers about a change in how domains expire.

First, the company will begin interrupting email services (MX records) in addition to web services five days after a domain expires. This should help alert the domain owner that his or her domain is expired and reduce the number of late renewals.

Second, customers will no longer be able to renew or transfer a domain after 30 days post expiration.

Expired domain name auctions currently end 36 days after a domain expires. So for domain names registered at GoDaddy that go through the expiry process, this means auctions you win should no longer be clawed back.

Technically, this means GoDaddy could eliminate the waiting period between winning a domain auction and receiving the domain name (for inventory registered at GoDaddy). This would be another welcome change: pay for the domain auction and the domain is yours.

The new expiration rules begin December 4.

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