GoDaddy is closing an expired domain “loophole”

[JulienJ]

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.

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[Foroux]

Does closing the loophole help GoDaddy's bottom-line? I'm surprised there are many worthwhile domain names that expire in the first place. I figured bots were behind most of the big scores. I'm sorry to hear that this has changed your business.