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information GoDaddy to increase closeout starting prices to $50

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Godaddy will be increasing their starting price of closeouts to $50. The pricing structure will go as follows:

Day 1: $50

Day 2: $40

Day 3: $30

Day 4: $11

Day 5: $5

This news is causing a stir in the industry and some are pretty upset. You can read in more detail about the price increase here, courtesy of domainnamewire - GoDaddy to change closeout auction pricing - Domain Name Wire | Domain Name News
 
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The views expressed on this page by users and staff are their own, not those of NamePros.
Publicly-traded companies are pressured to grow revenue and earnings. However, if customers feel they are being taken advantage of, they will go elsewhere. Domain name investing has been promoted by the industry as a motive for drop catching services, mass development, hundreds of New competing extensions and attending conferences. What percentage of domain investors actually make a living off domains? We don't even have reliable reporting of the size of the industry (sales) by the the very platforms that have the data. Wy? Because they know the truth - the average investor is losing money with domains. There are other places to deploy capital with more consistent returns.
 
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Like how many people have completely or like scaled back even participating, or checking godaddy auctions?

Any bid you place is countered by some sort of auto sensing bot, the closeouts are auto bidder by bots before you can blink. Really one major vendor has a monopoly on an auction platform?

Do they sense that active regular bidders has just checked out, not like it matters as prices are still sky high, and it just takes 2-3 constant parties who seem to be outbidding each other.

Who really enjoys bidding over there because you have a bot that drops a min bid on every countdown clock, opportunity cost of time of completing an auction taking hours per day. Sure you can drop your max bid, and the bot can keep tapping your max bid, until it bids it up, and bails.

The experience has become a soured one, and I really find it surprising that auctions are very scared, and impartial but some parties have been given tools to give them Demi God advantages.

Yeah, I have not been an active bidder in quite some time. The math does not make sense when it comes to sell through rate.

I would like to see an entirely new process when it comes to expired domains. These registrars act like it is their God given right to insert themselves as the middle men and make profits on "pre-release" domains.

They did nothing but be the registrar. They did not come up with the idea, they did not registrar the domain, they did not pay renewals. It is pretty unreasonable in my view that they are the ones keeping all the profits.

I have almost my entire portfolio at GoDaddy, but what I consider their greedy moves lately are concerning to me. Starting with their high stock registration rates, doubling the cost of DDC, doubling the cost of buy service, now this.

Brad
 
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interesting pricing strategy why $11 why not $10?
 
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GoDaddy stock was $25 four years ago. It is $85 now. GD stockholders couldn't care less if a domainer on Namepros cries about Closeout price on GD Auctions. Only thing they are interested in is how many dollars they earned in these 4 years. On each invested dollar they earned more than $3.
 
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People started uninstalling WhatsApp and switching to other Apps, what happened next? WhatsApp reversed its decision and it is no longer needed to accept the new privacy terms.

If Domainers stop buying from Godaddy auctions, what will happen next?
 
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GoDaddy stock was $25 four years ago. It is $85 now. GD stockholders couldn't care less if a domainer on Namepros cries about Closeout price on GD Auctions. Only thing they are interested in is how many dollars they earned in these 4 years. On each invested dollar they earned more than $3.

There is a difference between market cap of a company and financials. The valuation itself can largely be attributed to an irrational valuation based on their actual financials.

According to Seeking Alpha they have had 3.2B total revenue in the last (12) months, and a net income loss of 507M.

In 2017, 2018, and 2019 they had very small net income profits of 136M, 77M, 137M.

As a stock itself they have a bloated valuation based on their current financials.

Brad
 
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I wonder if their auction membership will stay $5 or what
 
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GoDaddy stock was $25 four years ago. It is $85 now. GD stockholders couldn't care less if a domainer on Namepros cries about Closeout price on GD Auctions. Only thing they are interested in is how many dollars they earned in these 4 years. On each invested dollar they earned more than $3.
That focus will bring them to the ground
 
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Or mentality I should say
 
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Yeah, I have not been an active bidder in quite some time. The math does not make sense when it comes to sell through rate.

I would like to see an entirely new process when it comes to expired domains. These registrars act like it is their God given right to insert themselves as the middle men and make profits on "pre-release" domains.

They did nothing but be the registrar. They did not come up with the idea, they did not registrar the domain, they did not pay renewals. It is pretty unreasonable in my view that they are the ones keeping all the profits.

I have almost my entire portfolio at GoDaddy, but what I consider their greedy moves lately are concerning to me. Starting with their high stock registration rates, doubling the cost of DDC, doubling the cost of buy service, now this.

Brad
That focus will bring them to the ground
Stock market as a whole in the technology sector is up quite a bit across the board. They are the 800lb gorilla in their space, and they are riding that wave.
 
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Stock market as a whole in the technology sector is up quite a bit across the board. They are the 800lb gorilla in their space, and they are riding that wave.
I didn’t even know GoDaddy was publicly traded ..the foundation is the company it self before the stock ...
 
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If you want to invest in invisible companies there is a lot of companies on blockchain that have some crazy goals
 
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I personally feel they increased the prices a bit too much. I think a $10 or $15 increase would be more understandable and reasonable but this is almost a 5x increase which is a bit too much imo. If I buy domains from closeouts, it would generally be in bulk but this changes things.
 
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I wonder if their auction membership will stay $5 or what
They have already announced that auction membership fee is now approximately double the old price. However, those who do not let their auction membership lapse, can renew at old price I believe (thread somewhere on NamePros that Joe S said that).
 
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OK GoDaddy we are all trying to make money and i don't think we gonna meet here, I'm out.
 
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Thanks for the mention @Bob Hawkes! - I would agree that model works really well to get investors max possible return capital using NL, I'm not sure GD will adopt it though because it is a bit more involved than a regular auction.

I suspect the main reason this is happening is pure monetary inflation, we are about to see what printing trillions (30%+ of total dollars in existence) in 2020/2021 will do to the purchasing power of your dollar. It's one of the main reasons why I've advocated for all domainers to adopt a foundation of sound-money with Bitcoin. Having savings is one of the most overlooked aspects of being a domain investor.
 
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I didn’t even know GoDaddy was publicly traded ..the foundation is the company it self before the stock ...

Ticker: GDDY
 
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Thanks for the mention @Bob Hawkes! - I would agree that model works really well to get investors max possible return capital using NL, I'm not sure GD will adopt it though because it is a bit more involved than a regular auction.

I suspect the main reason this is happening is pure monetary inflation, we are about to see what printing trillions (30%+ of total dollars in existence) in 2020/2021 will do to the purchasing power of your dollar. It's one of the main reasons why I've advocated for all domainers to adopt a foundation of sound-money with Bitcoin. Having savings is one of the most overlooked aspects of being a domain investor.

I am all for diversifying with multiple asset classes.

Pretty much any asset is an inflationary hedge from domains, stocks, collectibles, precious metals, crypto, etc. I personally don't really see anything that special with bitcoin vs any of the other inflationary hedges.

With domains if the USD value goes down in theory it should drive prices up, while at the same time making the fixed cost of renewals less of a factor.

Brad
 
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Before this happened, everyone said it was impossible to snipe a closeout bc of the bots. Now, that is still the case, all that's changed is that the bots will have three additional days in which to purchase at a higher price. But they won't snipe everything good because not only does the cost go up for them too, but they needed us to think for them before, and that won't change. There's too many domains, they won't be able to keep track of them all. This could lead to opportunities to get good domains that weren't there before, especially if you are willing to spend $30-50 during those first three days.
 
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Hi

i don't participate in gd auctions much, but....

clubdrop a former enom product, which later became namejet...
had same auction format
starting price was $240 and dropped over time down to $5, if no buyers.
i bought some at $240, some at $5 and many in between.

this was circa 2006 and a recent sale at sedo yielded $5k, from one of those $5 snags back then.

imo..
 
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eh maybe this will save some folks money, they'll be a lot more serious about what they're buying.
 
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The law of Supply and Demand folks -

A decrease in demand will cause the price to fall; quantity supplied will decrease.

Cheers
Corey
 
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I am all for diversifying with multiple asset classes.

Pretty much any asset is an inflationary hedge from domains, stocks, collectibles, precious metals, crypto, etc. I personally don't really see anything that special with bitcoin vs any of the other inflationary hedges.

With domains if the USD value goes down in theory it should drive prices up, while at the same time making the fixed cost of renewals less of a factor.

Brad

It's mostly because of the scarcity of the asset. All those other assets are not really scarce and this is especially true with real estate. The cost of carrying an increasing tax burden on property will definitely be a deterrent for most owners to capitulate while they can. The other assets are tightly controlled and can be confiscated by a tax hungry authority.

Bitcoin is sovereign liquid capital, transferrable to anyone and anywhere for any reason. I'm allocating more and more to bitcoin as a store of value, but also as opportunity capital in case a great domain comes up for sale. You might never be able to sell your RE or other assets in time to have the capital to make an aggressive move on a distressed asset.

Bitcoin in 2021 will be domainer's #1 against financial distress and protection of long term value.
 
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They have already announced that auction membership fee is now approximately double the old price. However, those who do not let their auction membership lapse, can renew at old price I believe (thread somewhere on NamePros that Joe S said that).

Wasn't that the DDC price?
 
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Why dont GD just prevent API from accessing the closeouts? This will completely resolve closeout snipping and API bots can still access the auctions which is the main purpose of the API in first place.

The more I think about it the more I realize that this move has nothing to do with preventing closeouts snipping. Moreover HD bots can simply snipe again when the price reaches $11.
 
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