By: RH
A few people asked me why we stopped posting the Go Daddy auction closing results. About three weeks ago someone called me and mentioned they were bidding on a domain on Go Daddy Auctions, they got side tracked and did not win the auction. They needed the name for a client and contacted the registrant listed in whois. The expired owner did a Google search and found our article and saw the name closed over $4000. Now I will say the domainer who called did not say please stop posting, he was just letting me know of this one transaction.
I then a talked with a guy who told me he pays a couple kids to call every name that closes over $500 on Go Daddy Auctions the previous day. He said he had it down to a system where he just went through his watch list, took every domain that closed over $500 and gave the teenagers a list of names, he taught them all about whois and now the two kids are becoming domainers.
I asked him how long as he been doing this ? He asked me if I was stupid. He said since a few weeks after TDNAM first started and imagined there were plenty of guys doing this. He mentioned that from time to time the teenagers would tell him they were the sixth person who called about the name.
I remember at Christmas I saw a name expiring on Go Daddy and I knew the registrant and I called him and told him. He replied, "I know, I am getting a true appraisal" I said that I guess forget free appraisals like estibot and whatever Go Daddy charges for theirs. Real appraisals cost $80. The price to pull a domain out of redemption at Go Daddy is $80.
I actually had won a domain CrystalTv.com that Go Daddy estimated a decent amount of traffic, and since its a genre of domains I focus on it was attractive. The owner paid the $80 and renewed.
Now I see Shane wrote about this topic today and the "spread" and how Go Daddy could fix that. Go Daddy could change the whois on the day of expiration and make it private, so then the game just changes and Domain Tools becomes the winner as people will just look to find the previous owner through that method. The game will change but the players will keep playing.
Now Go Daddy could really do something big and give the former registrant a piece of the action. I believe some names sell for more just because they are expired. So there may be domain owners that let names drop that were getting no offers. Either which way if Go Daddy were to give 20 % I think they would see a boost in their overall business as it would make even more sense to have domains there for the chance to make some money in the expired game.
We stopped posting the closing auctions results now so we are not affecting anyone getting a deal. It will be interesting to see how the game changes.
Great post. The guy pays kids to call domain owners ? time to put my kids to work and get some cheap labor.
Thanks for sharing. Very interesting.
Hi
Sorry for dumb question but I didn’t understand the whole process. How is this guy (who is paying school kids to contact owners) making money from this?
Can someone explain this please?
Thank you for stopping the posts.
A few quick points:
A. Many of the domains that sell on GoDaddy for over $500 are purely because of high PR. I imagine you knew this, but I never saw you mention it on your lists. I’m sure this was misleading for some.
B. Anyone who thinks that GD Auctions is a “real appraisal” of their domain name should probably quit. Never mind the fact that someone would pay $80 to do so.
C. To the guy who is paying teenagers to do his dirty, scum work… classy.
So, expired domains that ‘sell’ at Godaddy auctions can still be pulled out of redemption by the previous owner, even after the auction ends?
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I have always wondered why these closed auctions were being so heavily advertised.
Also, GoDaddy needs to place a transfer lock on expired names that are at auction–that would actually be in their best interest. If the name is expired, then I don’t see a problem in not allowing transfers out. Bidding on expired names is becoming a bit of a crap shoot these days. Just don’t make any plans until that domain has hit your account, and don’t blab your or others’ “acquisitions” prematurely.
Also, Godaddy could place expired auction names into a “expired domain” account, with Godaddy as the contact info, which would stop the transfers out. The original owner could still redeem it, but it would stop the vultures from circling over domains won by others.
I just lost a nice name because the “owner” TRANSFERRED the name out AFTER the auction had closed. It was a $12.00 win!
This is complete BS.
I just don’t know why GoDaddy doesn’t auction the names later in the expiration cycle (just before pending delete).
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First thank you for all the comments,second sorry for them getting approved late, I had not slept for a day so slept late today.
@tony No problem, no one ever said anything so we would have earlier, we never brushed off anyone asking us.
@domains yes when you win an auction, it does not go into your account right away, you pay for the name right away and you can check when name will be in your account.
@S You can watch as many auctions as you like, when they close. He looks for the ones that closed over $500. Check the whois and if it was not private, call the previous registrant.
@adam you make good points, I sometimes mentioned pr or some other reason about the price, and pointed out the bids jumping high on one bid like from $200 to $1200. But you are right there were so many and a lot were about PR. For those that believe the market determines price then you can say its a better way than any other appraisal. Personally I have always thought all appraisals were worthless.
@MsDomainer I agree, I had someone agree to sell name on Namepros then I see it on Go Daddy Auctions, I call Go Daddy they said he cannot transfer, he did, got it to Dynadot but he did make the sale and I got the name at Dynadot instead of Go Daddy.
yes its interesting what you suggested about GoDaddy cutting in domain owners on a piece of the expired domain auction pie. its funny, I think everyone can identify with the experience of not being able to sell a domain for peanuts on the forums but then seeing people go after them once expired. If GoDaddy were to follow your advice, i might be able to eek out a living just buying domains and dropping them. lol
The post is a little fractured and I am having a hard time following.
When the kids called, what did they say and what were they trying to do? Why are they calling and who are they calling?
What does TDNAM have to do with it?
Why would he want you/anyone to stop posting?
To Adam, what is more of an accurate appraisal than seeing where the domain closed in an auction with more than one bidder ?
$80 appraisals have been mentioned a few times and I can’t let that go by without posting my ideas on appraisals and value.
You can’t look at a name, gather a few pieces of data, run it all through some fractured formula that you devised and determine a value, not even a range of values. There are far too many variables involved. Without knowing who wants it, where it will be sold, when it will be sold, the current market conditions both within the domaining industry and within the domain name’s industry. What time of year is it … just before or after Christmas? What time of day is it … testosterone levels are highest in the AM. Is the moon in the Seventh House? What’s Jupiter doing? Don’t laugh. Hitler based every important decision he made on astrology and almost took over the world.
The OP makes no sense to anyone who doesn’t already know what is happening. The teens are turning in to domainers and this has what to do with the transactions?
Who buys what when, and where is the profit, if any?
Then there is a the (2nd?) non-sequitor where it would be nice if godaddy would share the profits. How exactly did godaddy make a profit? Go from step 1 to step 2 etc., on examples of a domain like somename.com where it changes hands with what result?
I find it astounding how many people seem to be upset that the actual Registrant, the person that initially registered the name and paid for it for years, has the ability to redeem their own name.
Its a lot like Jackals stealing a kill from a Lion and then being pissed about the Lion taking it back… it was his to begin with.
As for being pissy about those that call the previous Registrant and make a deal with them? So F*ing what? The Registrant then gets the money, not BloDaddy or whatever Registrar it is… and you’re somehow thinking that’s unfair?
godaddy is going need to change how the policy works on the auctions imo.
the ethics and competition is going up and up.
This is going get a lot worse as domains continue to rise in value over the stock market or small business for that matter.
something needs to be changed by godaddy. that simply.
I agree with Cartoonz, people are idiots and gaines what don’t you understand ? Do you need to be tested ?
I can’t even understand wtf gaines is talking about.
Cartoonz does not understand why I am pissed ? I will explain real slow for him to grasp. When I take the time to search out auctions and win the auction, I am pissed when some MF’er calls the registrant and alerts them and they redeem the name. Understand ???????????????
Gaines is so right:
A registrant can perfectly legally redeem a domain.
GoDaddy doesn’t need to change.
To who doesn’t like GoDaddy or whatever business:
Go then where it is better, or buy enough shares in that company to get things changed.
Alas, most domain traders are just opportunists who want to get domains for peanuts to resell with profit.
Self-proclaimed experts that know nothing about pricing and marketing, believing in Fair market Prices etc. nonsense.
It is seller and buyer that set the price, not 3rd party opinions.
The appraising industry is based upon choices made by appraisers, while only the opinion of seller and buyer is relevant.
Jealous people talking about underpricing and overpricing, because somebody affords it to pay for a domain more.
Domain forums are heavily populated with people, angry about the success of others.
Wake up, folks:
Business is Business.
Eat or be eaten.
What is not forbidden, is legal.
I understand when people being shocked when they miss a deal.
Yes, they need to ventilate emotions as they do here.
Understand not everybody is a reseller or an end user.
Different people, different needs and opinions.
A domain going today for $500 may remain unsold forever or resold within days for $5,000,000.
What’s the point?
Anybody predicting the future here?
Business is always gambling.
Who plays can win or not win.
Let us not go blind by emotions.
Success!
That was just incoherent J.R., and Gaines said nothing about what you are talking about.
I now apologize for still not understanding. I have access to teenagers who need to make money. Exactly how are these teenagers in the OP being useful? Please someone explain to me what happens to a domain when the teenagers call that makes money for me or them? The domain is http://www.ihadthesameproblemwithchickensonce.com a domain I actually own registered with godaddy.
Lets say the domain just expired or about to expire A teenager calls me and says what? How does the teenager or his mentor make money now? Or do I have it all wrong. Step-by-step.
No need to apologize Gaines.
I had first gotten a call and the person mentioned how they tried to buy a domain from the previous registrant. He said that the owner Googled his name and saw the post we did which included the closing price. The name closed at over $4000 so he was not going to sell cheaper than that.
I had been talking to a few people and emailing a few asking if they thought the posts were detrimental. One guy mentioned that he looks daily at the closing auctions, the one’s that closed over $500 he did a whois check,because Go Daddy still showed the registrant info, he then had two guys call and try to buy the name for a few bucks. When you win an auction at Go Daddy the name is not yours for another five days approximately, so the current registrant could pay $80 to keep the name. Then he could sell to the person making him an offer. Hope that helps, sorry for the confusion.
Yes it was confusing, but thanks for clearing it up… now, does he sell the names to the people that tried to buy it for the 500+? How does he end up making money from such names?