Go Daddy is destroying domain sales – The perpetual 80 day auction and Sedo’s refusal to remove domains from Go Daddy

Go Daddy confuses buyers by presenting unpriced domains as being in an 80 day auction. Most of these domain names are being send by Go Daddy’s partners such as Afternic and Sedo that recently started a partnership. Sedo refuses to remove domains from Go Daddy. I believe this is confusing to buyers and hurts domain name sales.

All unpriced domains for sale at Go Daddy come up as:

xxxxxxx.xxx is available through Go Daddy Auctions!
Minimum Offer: $xxxx.00 | Auction Ends: 2/xx/2013 6:05:00 PM PST

If you have set a minimum offer at Sedo or Afternic then it appears at Godaddy. If you haven’t then the default $500 minimum appears. Either way this doesn’t change the fact that all domains without a Buy It Now price are presented to buyers as being in an auction.

Of course Go Daddy is more US targeted but nevertheless Go Daddy will destroy domain sales worldwide. Prices are going to come down on domains listed at Go Daddy and fewer sales will happen.

I had never listed a single domain name at Go Daddy and suddenly all my domains appeared there overnight.

Go Daddy perpetually lists all domain names as being in a 80 day auction. Nobody in their right mind will make an offer for a domain that is in auction. They are going to wait for the auction to be close to the end and then make the lowest bid and expect to win the domain. That will not happen. So you are going to have a disappointed and confused buyer and no sale. And you would have wasted 80 fu***ing days. I have had numerous buyers emailing me that Go Daddy has my domain in auction with a $500 bid. That is not true and I will not allow it to happen any more. I don’t put my domains for auction. Not everything is about auctions.

Sedo and Afternic want to target the $500 market and that is their choice but I will not be dragged into that. I don’t sell domains at that price. I don’t even sell below $1500. At least Afternic offers an opt out option of listing your domains at Go Daddy. You just need to contact support and they will remove all your domains from Go Daddy. But Sedo refuses to remove your domains from Go Daddy so the only option left is to remove all your domains from Sedo. I have already removed 3k domains. They didn’t seem to care so I will remove another 3k today. Goodbye Sedo!

So the time to choose is here for all domainers. List at Sedo and have all your domains listed at the Go Daddy garage sale or leave Sedo? I know that a trend is already forming

This is what is happening to buyers in this email I got:

I’m interested in your domain ***********.com. I bid on 8/10/12 and you counter offered for $*****. I will go no higher than $****.
You’ve had this domain for seven years and I was the only bidder in your auction. This is your one chance to sell the domain.

There was no bid on my domain. The buyer requested a price from the GoDaddy aftermarket and then Afternic asked me to set a price for my domain because it is listed in Afternic. The “counter offer” was me setting a price for this domain name at Afternic that was pushed to the interested buyer. Buyer also seems to think that the domain is in auction and for the past seven years (the years that the domain is registered) nobody has made a bid. This very disturbing. GoDaddy should make it clear that most domains in it’s system are NOT in auction. Just because their aftermarket is called Go Daddy Auctions it doesn’t mean that all domains listed are in auction!

I tried searching for my domain name at GoDaddy and of course it appears to be in auction. Auction ends on 9/13/2012 and says “Minimum Offer: $500.00″ although the domain is now priced. My price is nowhere to be seen.

Then a week after the email above I got an offer through email for one of my domains for $300. I politely declined the offer for my 14 year old .com domain only to get this reply:

What are you looking for?
It is listed on GoDaddy Auctions for $500.

No it’s NOT! GoDaddy confuses the buyers by presenting the minimum offer at $500 instead of what it is and also by implying that a bid for $500 will win the domain in the auction if there are no other bids. Buyers then get the real price and they feel cheated and angry.

And here is another email:

Dear Sir or Madame,
I noticed you have for sale the domain name: ****.info .
The minimum to trigger auction appears to be $500.00 .
I’d be interested to learn what you would accept to buy the domain please.
Thank you.

 

I also get questions from blog readers that ask why does my domain shows as auction at GoDaddy.

Yesterday someone searched at google for “what happens make offer godaddy auction” and ended up at one of my posts. People don’t know what’s going on and are trying to find out. I am not getting any sales tat Go Daddy and potential buyers are confused by the whole process.

And here is the last email from today:

I find this domain on an auction and there was a start price for 1278$ and there were no bids… I will do this price bid like a chance to have this domain, but this auction were finished early.

That is enough for me.

Konstantinos studied Computer Engineering and Computer Science in London, UK and lives in Athens, Greece. He works on domain name registration, management, UDRP consulting, website development and hosting. He has been online since 1995 and a domain investor since 2002. You can find him at Google+TwitterLinkedIn

Konstantinos Zournas – who has written 1983 posts on OnlineDomain.com.



106 thoughts on “Go Daddy is destroying domain sales – The perpetual 80 day auction and Sedo’s refusal to remove domains from Go Daddy

  1. Pingback: Go Daddy and Afternic Offer/Auction Confusion | Online Domain

  2. Domaineers are those who engage in domaineering which, according to a Prof. William Lorenz, is the web-based marketing business of acquiring generic Internet domain names for the purpose of monetizing them through their use primarily as an advertising medium. In essence, the domain names function as virtual Internet billboards with generic domains being highly valued for their Pay Per Click ( PPC) revenue generating potential derived by attracting natural Internet traffic hits from organic search engine results. As with traditional advertising, domaineering is part art and part science. Often to be the most effective as advertising tools, keyword rich domain names and their corresponding landing pages must be engineered or optimized to produce maximum revenue which require domaineers to have considerable knowledge of search engine optimization ( SEO ) practices, marketing psychology and an understanding of the target market audience.
    Domaineers generally utilize a firm offering domain parking services to provide the sponsored “feed” of a word or phrase searched for thus creating a mini-directory populated largely by advertisers paying to promote their products and services under a relevant generic keyword domain. Occasionally content is added to develop a functional mini-website.

  3. …”Domaineers generally utilize a firm offering domain parking services to provide the sponsored “feed” …”

    Of course they utilize a “central” firm, to make those virtual billboards works.
    Even yellow pages editors utize sale agents.

    Anyway the truth here is one only: google has been sabotating parking model business for 10 years with the complicity of parking platforms. The reasons of that are clear even for dumb: type-in is more powerful than google.

    Money has been the search engine in real life for centuries and still is. It is normal and is even good, in some cases: if you spend money means you are credible for potential customers. All marketing professionals and entrepreneurs know this law.

    Parking is the first legit use of GENERIC domains and google’s management, jointly with managements of parking platforms, have to be sued with a CLASS ACTION.

    I repeat: that SABOTAGE, which is going on for 10 years, claims a CLASS ACTION, with COMPENSATIONS for registrants that trusted in those parking platforms.

  4. “Domaineers are those who engage in domaineering which, according to a Prof. William Lorenz, is the web-based marketing business of acquiring generic Internet domain names for the purpose of monetizing them through their use primarily as an advertising medium.”

    That is only a secondary scope, according TO ME, and not to mr.Lorenz, since I don’t know who the fuck is mr.Lorenz and I don’t care. The PRIMARY SCOPE of domaining is KEEP THE FREEDOM OF ENTREPRENEURSHIP, and not leaving the board of one single company take control of all the humans and all their businesses worldwide.

    THIS is THE SCOPE OF DOMAINING, mr.Gniree Naimod (even if I know many are only speculators with no interest for freedom in entrepreneurship, but this doesn’t matter: any free entrepreneur prefer giving some money to them today that be screwed forever by google.

  5. Can someone tell me if this is permitted. If you go to godaddy and search for a domain – but when you are presented the price – you see that its too expensive – but available. You then go to another service like 1and1 – and you realize that the domain is NOT available. Because godaddy parked your domain based on your search. Is that legal. This is unfair for competition that they park domains just based on if someone searched for it.

    • The domain you searched for was probable registered by someone 5 or even 15 years ago.
      Go Daddy did not “parked” the domain at the time you made the search.
      The owner is selling the domain name at the price you see using Go Daddy as the broker.
      Check whois for that domain so you can see who owns it and when it was registered.

      • Dont think so. Its one of those new .photography .online .restaurant domains. This happened yesterday.

        1. First searched for it on godaddy. It was available
        2. then went on 1and1 – it was AVAILABLE, upon buying it. 1and1 sent me a message saying it was unsuccessful.
        3. Went back to godaddy – its still available

        All of the above happened withing an hour. The whois sevices apparently dont catalogue those new TLDs yet.

        • These are all different.
          .photography is in general availability. .online and .restaurant only accept pre-registrations.
          There are also premium priced domains that have renewals at $50-400 per year.
          What new gtld did you search for?

          Check this whois for .photography: whois.donuts.co

          • .

            The following is taken from Canadian Professor William Lorenz’s pioneering work on “Evolving Trends In Ecommerce Marketing”.

            Some of the usual steps involved in how to do domaineering:

            1) Open an account an at a domain registration company. Shop around for the best deals.

            2) Open an account at a domain parking company of your choice. Tip: Consider opening several accounts because some domain parking companies do better with certain domain names than do others.

            3) Think of a word or phrase to register as a domain name. The more generic the better and TLDs do matter.

            4) Check the trademark registries to see that the word or phrase is not a registered trademark. Consider obtaining professional legal advice about this as it can be tricky.

            5) Register your word or phrase as a domain only if you are certain it is not infringing on a trademark.

            6) “Park” your domain at your domain parking company.

            7) Where you registered your domain, switch your domain’s dns to those of the domain parking company.

            8) Customize the landing page for your domain at the domain parking company if necessary.

            9) You are now ready to start collecting PPC advertising revenue.

  6. I scanned though here, so I hope I haven’t missed the point! I have been trying to buy domains on GoDaddy austions with’buy now’ options. The RIDICULOUS thing I have noticed is that there are hundreds and hundreds of domains listed on 90 day auctions that will NEVER sell at the ‘Buy Now’ prices being asked – they are utterly ridiculous. This is not determined by the market because the market value is what people are offering – ZERO! Someone needs to educate sellers about this and Godaddy needs to run 3 day auctions – not 90 day marathons! There is no reason for 90 days! 7 days max I would suggest.

      • this post is on G page 1 , for term “godaddy auctions”

        Wow, what a solid blog and best content you have t here, Kantos, thank you for sharing and keeping this blog so respectful and honest. Hope you keep rolling bud.

        BTW, the reason am here is godaddy auctions SUCKS!

  7. I love how you people buy hundreds (in some cases) thousands of domains and sit on them thinking someone will buy that crap. Since nobody has ever had the balls to tell you the bare bones truth, I will. YOU WASTED YOUR MONEY! Now let the damn domains go so people with creative ideas can actually build websites. It’s absolutely ridiculous that you morons sit on thousands of domains just to try to rip off somebody who wants to make an actual website.

    Now, I can understand if your sitting on business.com, houses.com, cheaphotels.com Those will actually serve a purpose and quite possibly draw interest from somebody who wants to buy it. But you fucking morons who sit on ayhgq.com, biga2day.com & 3waymonkey.com are assholes who need to kill yourself.

    As a web developer and entrepreneur it pisses me off when I want to make a simple forum for my friends and can’t buy a creative domain cause one of you assholes has it on auctions selling for hundreds more than the piece of shit is worth.NEWSFLASH!

    Do you know what people like me do? We sit on godaddy for hours and hours until we find an acceptable domain name. We WILL NEVER pay you morons for your garbage domains.

    Now I have been in a situation where I was determined to get a short 5-6 letter .com domain for a business and had the money to spend. You know what I did? I typed the domain in my browser. If I didn’t see information right then and there on who owned it and how I can contact them, I tried another one. Going through auctions sucks because it takes days for the transfer and is a major pain in the ass. If I am going to spend real money on a domain somebody owns, it will be talking to them directly and negotiating. You want to sell your domains? Put your cellphone number and contact info right on the site and say its for sale. That’s how you’ll sell it. Otherwise, your wasting your time and everyone else’s. This advice only goes for real valuable domains. As far as your shitty 18 letter domains, or your crappy domains filled with dashes, digits, and misspelled/made up words, just get rid of them. Nobody will ever ever ever ever ever buy that stupid ass shit.

    Period.

    • If the domains we have are so bad, why do you care?
      If we are loosing money and nobody wants these domains, why do you care?
      Maybe we can appoint you king and you tell us what domains to register and what domains not to register.

      I don’t want your money. You are clearly need all the money you have to buy bullshit domains.
      As I have said about 10 times above, the domains that go daddy lists as being in auction, ARE NOT IN AUCTION!!!
      But I guess you don’t get that. Try contacting the owner direct using whois details.

      Real transfers take 1-5 days. OK?

      I don’t own that shit you describe and if I did I wouldn’t take your advice on what to do with them.
      You clearly don’t know what you are talking about.

      Web developer… Give me a break. Typing domains into the browser… lol
      Have you heard of domains that are not resolving because they have no nameservers? Web servers that are down?
      Hosting that has not been paid?

  8. Pingback: Is Buying Domain Names Profitable?

  9. I was wondering how Bhanged.net got on godaddy auctios. I looked at a couple other names I own and they are listed there too. I didnt submit them but I did sign up and add names at afternic a month ago. Time to dig a little deeper. Should I delete afternic submissions. I went with then cause I searched info at DomainTools.com and suggestions are shown, they went to afternic when i clicked a name. I am a member of godaddy auctions for the record.

  10. Thank you for sharing this info. I see my 55 names all have a buy it now price, with minimum offer set at the minimum which is $250, thankfully. I switched one name to have no buy it now price, see what goodaddy auctions has to say, see how long it takes to switch.
    My one name http://www.Bhanged.net has the proper listing price price of $1500 but it says offer $975 or more. How they came up with 975$ when my minimum offer is $250
    You would think they have the lowest offer up on the board, get a bite maybe. My name with no BIN price is still listed for $420, no change yet.
    Since everyone else is throwing in a recent reg or something for free exposure. I have a question about a domain name I just reg’d
    its called http://www.DnPotential.com
    Is it worth spending money on developing or should I flip it for a profit? It is a minisite atm

  11. Pingback: Sedo Adds A Minimum Sales Commission Fee To Parked Domains | OnlineDomain.com

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