information GoDaddy to increase closeout starting prices to $50

pb said:

Wasn't that the DDC price?

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Maybe I am confused. Yes you are right.

wwwweb said:

This is a finely calculated chess move, now you have a $12 auction coming onto close, do you bid $12, or do you wait to closeouts to bid $50. Newbie thinks ok let me bid $12, save myself $38, we all know what happens when we bid, the HugeDomains Monster Bot rears his ugly head, and puts his $1xx bid in place, now you got a new problem, do I pay $150, or do I let it go?

At this point there is no point in waiting 5 days, and paying $5, instead of $12 if name is still there at that point. Really the system is designed to inflict maximum financial pain.

Congrats to all the API closeout snipers, you have had a great 3-4 years, uncontested.

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but the API still has the advanatge as the first to pay the $50, so nothings changes to solve the probelm we cared about..

Page Howe said:

but the API still has the advanatge as the first to pay the $50, so nothings changes to solve the probelm we cared about..

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yet.

I hope it forshadows a more access to API.

@Joe Styler we still need to spend 5 to 6 figures GD monthly to get API?

Page Howe said:

but the API still has the advanatge as the first to pay the $50, so nothings changes to solve the probelm we cared about..

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Rumour has it API in closeout is kaput.

wwwweb said:

Rumour has it API in closeout is kaput.

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Hope you're right.

Get ready for this post to be quoted in every Domaining blog

Scoop Plugged in You're the man. FINALLY!!

Unless you think it foreshadows it's demise, i hope you're right.
Why not announce it with the Closeout Price restructure? makes no sense

Samer

Drastic changes in such short periods of time, the perks of having a monopoly.

I agree with everybody whos says... What do you expect from GoDaddy. They are a profit motivated company. But I give you a fairly solid prediction. That there will be no sales in closeouts except for the final $5 bids DropCatch or no DropCatch automated bids in the auctions. Except for DropCatch will be able to now snap up bargains for $50 with automated bids for those domains which had no bids in the regular auctions. It's not there yet. But its coming.

I think the DropCatch parent company should be GoDaddy's next acquisition

stub said:

I agree with everybody whos says... What do you expect from GoDaddy. They are a profit motivated company. But I give you a fairly solid prediction. That there will be no sales in closeouts except for the final $5 bids DropCatch or no DropCatch automated bids in the auctions. Except for DropCatch will be able to now snap up bargains for $50 with automated bids for those domains which had no bids in the regular auctions. It's not there yet. But its coming.

I think the DropCatch parent company should be GoDaddy's next acquisition

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Yerp. I found that it was impossible to wait for $5 after $8 because ppl would automate it.

So I just buy at $8.

Now we buy at.... $F I f t y. . .

Not GD putting a block or income gap in domain investing or anything *cough* rich get richer

Increasing the closeout price won't change a thing for the big players with large funds. HD bots can just snipe away domains at 50$.

Problem will be for small players with limited funds who look for domains that somehow go unnoticed and falls through the cracks. Now they have to pay 4 times as much.

@!(^#!(* GoDaddy! This is the last straw. Will do nothing to prevent HD from auto buying half their inventory and only hurts us individual domainers. GD can kiss my 2k domains goodbye! DAN, please rush your registrar services out as fast a possible.

Most closeouts are trash.

I stopped buying them last year, even with the ability to snipe with a high success rate.
*(Still can't beat that API with a 1 second purchase time)

There were also some real suspicious moves where I would win, submit payment, domain would land in my panel as won, then would vanish a day later and they would say someone else won... **cough**aSubsidiaryOfGoDaddy **Cough** not going to get into that.

I bought about $3k in closeouts last year, and covered those costs in the sale of 4-5 names.

Most of them I will drop, but there are a few I have added to my permanent portfolio as I believe they will have solid future returns for long term holds.

As they put the pinch on the price it just makes more sense to go to auction and spend that $3k on quality names that people would want. I suggest that anyone interested in playing the closeout game have the best analytics they can find - don't jump in there blind at $50 per name.

Right now I would much rather spend $3k on GOOD auction names and play those odds.

I will gladly go to auction for a domain worth buying - you get what you pay for.

I here you @DomainVP. Actually for any one domain $5 or $50 is still ok for any domain which you can sell for $3k. I too have played this dropcatch game at GoDaddy (though not much in 2020 coz I was unloading lots of poor domains from GD Auctions). But with 10 times the price, 1) Our budgeted number of domains we will purchase has surely shrunk, and 2) Not everything you buy is guaranteed to sell for $3K. So we are looking much more a breaking even situation, than feeling comfortable we will make a good profit.

I have a question. Which you might be able to answer. How sure is it when you bid on a domain in the open auction, that DropCatch will bid too, and overbid you. Is it 100%/75%/50%/25%?

I also agree with you that most closeouts are trash. They are still going to be mostly trash when that start at $50 too, just because nobody has bid on the domain.

OMG I am so surprised (not)

stub said:

I have a question. Which you might be able to answer. How sure is it when you bid on a domain in the open auction, that DropCatch will bid too, and overbid you. Is it 100%/75%/50%/25%?

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100%

They are using analytics that most investors don't have access to. We all kind of have access to it, it just requires bots to harvest.

They know what domains to target, so any auction worth buying you are going to pay 2x more than normal. However, if you did your research right you should be able to sell that domain for 10x+ what you paid.

Across 5 auctions you only have to be right once and you make your money back and have 4 more domains to hold/sell for profit / net gain. Though those margins are thin without room for error. IMO.

It's the natural order of things. Become monopolist -> raise prices -> people leave -> stop being a monopolist.

Nerevar said:

It's the natural order of things. Become monopolist -> raise prices -> people leave -> stop being a monopolist.

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Sounds a lot like cPanel

Nerevar said:

It's the natural order of things. Become monopolist -> raise prices -> people leave -> stop being a monopolist.

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People don't leave (edit:domains buying) cause they have an unexplained hope that they'll make good money from it someday.

Monopoly leads to arrogance and arrogance can lead to wrong business decisions.

Look at what is happening to WhatsApp, suddenly I have many contacts appearing in my Telegram lol

From the OP article:
"People with access to GoDaddy’s legacy API have been able to take advantage of this opportunity, but bidders without API access and computing power/development resources have been left out. Smaller domain investors, in particular, have felt disadvantaged."

So now Godaddy is caring the poor smaller investors with less resources and want to help them
they are so sweet
thanks Godaddy

At the point when a space name on Go Daddy's lapsed sale stage doesn't sell by the end date, it moves to closeouts. Closeouts follow a Dutch sale design in which the space is $11 (in addition to reestablishment) right from the start and diminishes by one dollar for each day to $5. The space continues to cancellation if nobody gets it by the last day.

Domainers or Big Companies who has API access must pay high 5 figure cost for GoDaddy monthly. So $50 for quality domains still affordable and cheaper than DropCatch.
I think that the purpose of increasing their Close Out price is just maximize their profit. That's it.
Big whales still catch quality domains on Close Out at $50 like they do daily.
And small domainers will be kicked out off the hunting game.
Welcome to 2021 with the basic prices are increasing (acquiring cost and renewal fee).

I doubt there will be a significant profit increase. The closeout starting price of $50 discourages auctions, because at that price closeouts become competitors to auctions, so products cannibalise each other.

So, they are not setting up a program to compete with Name Liquidate... Not that I thought they would...

I get why they are doing this, I know it will not benefit me, there are thousands of undervalued domains elsewhere, so I will continue to limit my spending on GD...

On a broader level, we will see what the market does. As others have mentioned, the bump up to $50 is on par with some of the other marketplaces.

I have won a few $12 auctions at GD though...

wwwweb said:

Rumour has it API in closeout is kaput.

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I spoke to Paul Nicks just now and it's not going away. No changes to the API.

Samer said:

Hope you're right.

Get ready for this post to be quoted in every Domaining blog

Scoop Plugged in You're the man. FINALLY!!

Unless you think it foreshadows it's demise, i hope you're right.
Why not announce it with the Closeout Price restructure? makes no sense

Samer

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No quotes because not true. Paul Nicks confirmed no changes to API, it's available for closeouts.