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GoDaddy is closing an expired domain “loophole”

by — Expired Domains 18 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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WIPO panel explains a common expired domain occurrence

by — Policy & Law 0 Comments

A company wanted a domain but failed it capture it when it expired. Then it filed a UDRP against the new domain owner.

A World Intellectual Property Organization panel has provided an unusually descriptive explanation and interpretation of a very common occurrence.

Rolyn Companies Inc. filed a UDRP against the domain name Rolyn.com just weeks after the domain name was sold in an expired domain name auction. The domain was previously used by another company named Rolyn. That another company previously used the domain for its business suggests that the complainant is unlikely to have exclusive rights in that term.

Take a look at how the panel summarized this while inferring that if the complainant wanted the domain, it should have figured out how to buy it upon expiration: Click here to continue reading…

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GoDaddy gets patent for text-based domain name renewal

by — Domain Registrars 3 Comments

System would make it easy for people to renew domains using a third-party texting service.

The U.S. Patent and Trademark Office has issued patent number 9,929,995 (pdf) to GoDaddy for “Third party messaging system for monitoring and managing domain names and websites.”

The patent is a continuation of an earlier one the company filed for allowing people to make changes to a website via text message.

This latest patent covers technology that would allow GoDaddy to communicate with customers via SMS, app or a third-party social network to help them renew their domain name or expand their webhosting package.

For example, if a customer’s domain is about to renew, GoDaddy could send a text message to the customer and ask if they want to renew it. They could respond ‘yes’ to renew the domain automatically, or ‘no’ if they want to let it expire.

On the hosting side, GoDaddy can send a message to the customer if they are about to exceed one of their quotas and give them the option to upgrade their hosting package.

This is somewhat like a chatbot. When an ad campaign on Facebook expires the company starts a Facebook Messenger chat with the advertiser that lets them get stats and extend their ad campaign by typing plain English words.

GoDaddy Chief Architect Arnold Blinn and former Sr. Director of Product Management Nitin Gupta are listed on the patent as inventors.

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GoDaddy gets patent related to facilitating expired domain and aftermarket transactions

by — Domain Registrars 1 Comment

Concepts in patent could help domain owners sell more domains.

GoDaddy patentThe United States Patent and Trademark Office has granted a patent to GoDaddy for “Notifying registrants of domain name valuations”.

The title of U.S. patent number 9865011 (pdf) is a bit misleading to the crux of the patent, which is much more encompassing. There are two main concepts in the patent:

1. Notifying domain searchers if a domain becomes available.

The patent states that 65% of searches today result in a user not finding the available domain they originally searched. (Note: the patent application was filed in January 2015).

So GoDaddy describes a system that monitors domain names people search for and notifies them if they later become available due to a) the domain expiring or b) the domain owner offering it for sale in the aftermarket (or indicating they are willing to sell it). The notifications may be limited so they don’t trigger if too much time has passed between the search and the availability.

2. Enabling communication between a domain searcher and domain owner to facilitate a transaction.

If the domain owner opts in, there could be a way for a domain searcher to contact the domain owner with an offer to buy the domain name. There might also be some sort of domain valuation that occurs as part of this process.

The patent states that should domain owners have success selling domains, it might incentivize them to consolidate their portfolio and listed it for sale in the domain aftermarket.

GoDaddy GM Michael Mclaughlin and VP of Product Management Tapan Kamdar are listed as the inventors.

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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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