Domain purchased from closeout is now GONE?

[CryptoInvestor]

Hello! I purchased a domain from GoDaddy back in December, I got it from a closeout deal for about $17 total. I just got it Brandpa approved and went to change the nameservers, and its gone! I checked the whois and found it was transfered back to another user on the 6th of this month. I emailed him but, why was he able to do this and how is this allowed?

 

[ben pedri]

This has been going on for years. Maybe 4 years ago I won a .co domain in their auctions. It went into my account and 2 days later they took it back. They kept it in their portfolio for years. But I guess they sold it eventually. As they no longer own it now. I asked my account manager, but only got a bland reply. No real reason. (read: They didn't tell me the truth). That was the moment I realized that your account manager is not on your side at GoDaddy. In the earlier years they would at least pretend, and usually did, stand up for your rights. Ce la vie. Now, for much more serious reasons, I have an empty account at Godaddy and no Account Manager. And I'm satisfied with that outcome

A lot of what happens at godaddy is very scripted, I sold about 50 domains at afternic ,most of those sales fall apart ,but always the answer at godaddy is wow ,this never happens ,on the other side of this is the buy side ,ive bought gems ,once I bought a LLLL.com chip gem that was just listed an hour b4 for 250 buy it now, about the same price the regular llll.coms non chips. GUESS WHAT ,THE SALE WAS CANCELED ,HO HO HO we at godaddy and afternic will suspend their account if this never ever happens ,WHAT BS I had more godaddy sales killed and reversed ,ALSO afternic is the biggest joke ,there is absolutely no follow up from its lazy sales people ,b4 godaddy these guys were hungry,although I do however think that it is a solid company and they are making a shi. load of money on expired domain, I must however mention I do own 1200 shares of gddy and also control another 3800 shares with 90 percent delta via calls

 

[Name Trader]

A lot of what happens at godaddy is very scripted, I sold about 50 domains at afternic ,most of those sales fall apart ,but always the answer at godaddy is wow ,this never happens ,on the other side of this is the buy side ,ive bought gems ,once I bought a LLLL.com chip gem that was just listed an hour b4 for 250 buy it now, about the same price the regular llll.coms non chips. GUESS WHAT ,THE SALE WAS CANCELED ,HO HO HO we at godaddy and afternic will suspend their account if this never ever happens ,WHAT BS I had more godaddy sales killed and reversed ,ALSO afternic is the biggest joke ,there is absolutely no follow up from its lazy sales people ,b4 godaddy these guys were hungry

Agree. Sometimes it seems like they hide behind a hall of broken mirrors. I think they try their best with all their defects But are they doing a good job? Not for those who are are affected. It should be ZERO tolerance for every problem. The only person I trust not to lie to you is Joe Styler. I think he is as fair as he can be, putting Godaddy's side of the story.

 

[Jv1999]

Agree. Sometimes it seems like they hide behind a hall of broken mirrors. I think they try their best with all their defects But are they doing a good job? Not for those who are are affected. It should be ZERO tolerance for every problem. The only person I trust not to lie to you is Joe Styler. I think he is as fair as he can be, putting Godaddy's side of the story.

Oh, then I guess he's right about Arca's domain. He said that it was the right thing to do. I guess GD bought 33 domains, and it's not that they forgot to renew it, it's just that the buyer may have done some kind of action that made them think the buyer paid or something like that -- so GD gave htem the domain.

 

[campout]

@Jv1999 GoDaddy was the buyer.

 

[Jv1999]

@Jv1999 GoDaddy was the buyer.

I'm a little confused as to the actual facts, but I think the domain was in GD's possession (so they purchased it already), then a sale happened previously. But GD offered the domain as an expired auction anyway? (Because in GD auctions, GD auto-renews all its names)

So even if the domain expired, it was actually renewed by GD. And GD decided to honor the underlying sale from the previous owner -- so they simply took the domain out of Arca's account, then sent it away~.

EDIT: Yeah, Arca bought it at closeouts:

Bought a name from GD closeouts, received the domain into my account on Jan 13, and then today the domain was removed from my account!

WOW I GUESS. NEVERMIND. I JUST WHOIS'D A CLOSEOUT DOMAIN. THEY AREN'T AUTORENEWED BY GODADDY LOL.

They literally took Arca's domain, which he renewed. Then just removed it from his account to give to someone else!!!!!!!!! WHAT KIND OF BS IS THIS?

 

[Name Trader]

They literally took Arca's domain, which he renewed. Then just removed it from his account to give to someone else!!!!!!!!! WHAT KIND OF BS IS THIS?

The kind of BS that has been going on for years.

 

[nurussadad]

A new information to me. Thank you

 

[Name Trader]

Oh, then I guess he's right about Arca's domain. He said that it was the right thing to do. I guess GD bought 33 domains, and it's not that they forgot to renew it, it's just that the buyer may have done some kind of action that made them think the buyer paid or something like that -- so GD gave htem the domain.

You are forgetting 1 small fact. Joe works for GoDaddy and puts their best face forward here on NamePros. Just because he hasn't lied in this case doesn't mean this never happened. He just hasn't seen the same evidence. His explanation seems perfectly correct in both cases.

In @CryptoInvestor's case, he is probably correct, and it's up to CryptoInvestor to provide some facts which show's he is wrong. Which so far CryptoInvestor has been unable to do. But this is still not saying this did not happen. But it's looking less likely with no proof.

In @Arca's case. I don't think he is disputing the facts as explained by Arca. However GoDaddy decided to do what they did, and he has to support that decision. Even if it was the wrong decision to make. He probably was not in the meeting when the decision was made. GoDaddy made the mistake. They should have eaten the loss. They should not have tried to justify it by what they might have done in similar circumstances as if it was another customer. (Probably such a remote probability that it's almost farcical). This is such a wrong decision to make as the owner of the auction platform. It's a wonder they have any auction customers left (rhetorical statement). Expletives Deleted.

 

[Arca]

I'm a little confused as to the actual facts, but I think the domain was in GD's possession (so they purchased it already), then a sale happened previously. But GD offered the domain as an expired auction anyway? (Because in GD auctions, GD auto-renews all its names)

So even if the domain expired, it was actually renewed by GD. And GD decided to honor the underlying sale from the previous owner -- so they simply took the domain out of Arca's account, then sent it away~.

EDIT: Yeah, Arca bought it at closeouts:



WOW I GUESS. NEVERMIND. I JUST WHOIS'D A CLOSEOUT DOMAIN. THEY AREN'T AUTORENEWED BY GODADDY LOL.

They literally took Arca's domain, which he renewed. Then just removed it from his account to give to someone else!!!!!!!!! WHAT KIND OF BS IS THIS?

Seems like there's a lot of confusion going on, with certain new information coming to light that contradicts previous info claimed by GoDaddy. I'll try to post a full rundown on what happened later today or tomorrow.

 

[MapleDots]

I stopped buying at godaddy after losing two domains. I was charged twice, one was up a 800 usd and thinking back I think the other was around 4-6 hundred.

I was waiting for the domains to hit my account and they never did. I ended up dealing with the previous user who asked me to pay what I bid at godaddy. Nope..... I'm done with this crap.

I'll buy my domains at namepros from now on

 

[Arca]

Here's a rundown of what took place:

1. GoDaddy buys a domain from YummyNames (Tucows) for their own portfolio - part of a larger portfolio purchase.

2. A GoDaddy customer support claimed to me that they never got the domain I won transferred to them from YummyNames/Tucows prior to expiry, but WHOIS records show that the domain was actually transferred to GoDaddy’s ownership prior to expiry.

3. GoDaddy accidentally does not renew the domain they own, later claiming there was a system error when they renewed it. They said they renewed it but it was not renewed. GoDaddy’s WHOIS (not seller's) is reflected during the redemption period.

4. As the domain is not renewed, it goes through expiry pre-release at GoDaddy auctions. I buy the domain at GD auctions (and in that process pay for the name to be renewed).

5. The domain is renewed and transferred to my GoDaddy account.

6. I start using it i.e. updating WHOIS, verifying ownership with marketplaces (ironically GoDaddy's Afternic marketplace successfully verified my ownership of the domain…). I owned the domain for 4-5 days and had full control of it in my account.

7. GoDaddy realizes that they let the domain expire.

8. Expired Godaddy domains can only be renewed up to only 30 days after expiry. GoDaddy can’t renew the domain because it is 47 days past expiry and now under my ownership. They are 17 days too late to reclaim it via established channels (when auction won domains are renewed/cancelled prior to us receiving them and we get the email witht he subject line “The enclosed items have been canceled, Arca”).

9. GoDaddy decides to take the domain from my account regardless. Somebody from GoDaddy goes into my account and uses the begin account change/move a domain to start a push to their own account. I received no prior communication from GoDaddy and only discovered this when I received the ownership transfer confirmation email. When I logged in the domain was no longer in my account (luckily I didn't sell it prior to them taking it from me!).

10. I call GoDaddy customer support. GoDaddy customer support says the former owner sold the domain, forgot to renew it, and they need to take it from me to deliver it to the new buyer. Turns out the buyer and pre-expiry owner was actually GoDaddy, they did receive the domain, but did not manage to renew it, so it went through the regular expiry pre-release process.

11. Joe Styler verifies that the domain was taken from me: “As to @Arca we did take the domain from his account. This is exactly what happened.” He also added that “it was the right thing to do.” He also shares that along with my domain, they took back 32 other domains that they accidentally didn’t renew as well.

12. GoDaddy gives Arca a $50 gift card (and commend themselves for their fairness and generosity in providing a $50 compensation for taking the domain, even though they are not obliged to provide such compensation by their terms).

13. GoDaddy owns the domain and will offer it for sale through Afternic.

 

[Arca]

GoDaddy made the mistake. They should have eaten the loss. They should not have tried to justify it by what they might have done in similar circumstances as if it was another customer. (Probably such a remote probability that it's almost farcical). This is such a wrong decision to make as the owner of the auction platform. It's a wonder they have any auction customers left (rhetorical statement). Expletives Deleted.

I completely agree. It would have been easy for them to just let these 33 expired domains go. After all they took them back for themselves and are now sitting on them.

As for their auction platform, between GoDaddy and DropCatch there isn't all that much for resellers to buy elsewhere anymore. These two giants have truly cornered the market and we are at their mercy, hence why they can steamroll their customers without backlash. Sad truth is that we need them more than they need us, so they don't have to pay too much attention to their reputation and trustworthiness. So while I promptly transferred out all eligible domains from GoDaddy account after this (and recommend others to do the same!), I see no option but to keep buying names at GD auctions... All bought names will be leaving my account on day 61 though, and I will refrain from listing them for sale immediately after getting them into my account in case GoDaddy later decides to take the domain back.

 

[Name Trader]

I completely agree. It would have been easy for them to just let these 33 expired domains go. After all they took them back for themselves and are now sitting on them.

As for their auction platform, between GoDaddy and DropCatch there isn't all that much for resellers to buy elsewhere anymore. These two giants have truly cornered the market and we are at their mercy, hence why they can steamroll their customers without backlash. Sad truth is that we need them more than they need us, so they don't have to pay too much attention to their reputation and trustworthiness. So while I promptly transferred out all eligible domains from GoDaddy account after this (and recommend others to do the same!), I see no option but to keep buying names at GD auctions... All bought names will be leaving my account on day 61 though, and I will refrain from listing them for sale immediately after getting them into my account in case GoDaddy later decides to take the domain back.

I agree. I started this policy of transfer out after 60 days, probably 2+ years ago. Way before my Close Encounter with the Third Kind But my appetite for Godaddy Auctions dwindled almost 100% after that close encounter. In part because I decided I needed to seriously reduce my portfolio size. Also in part because HugeDomains began bidding on GoDaddy Auctions and started pushing prices up. I think that was a good strategy from HugeDomains POV. Even if it affected me somewhat. It's a free market. After all.

 

[LucidDomains]

I haven't read this thread. Just Arca's post above. That is the exact reason I don't use GoDaddy. Too many stories of GD's abuse of power.

You would never get anything similar at NameSilo in my opinion. That's why nearly all my domains are there.

 

[Jv1999]

I haven't read this thread. Just Arca's post above. That is the exact reason I don't use GoDaddy. Too many stories of GD's abuse of power.

You would never get anything similar at NameSilo in my opinion. That's why nearly all my domains are there.

I mean, it's true. But chances are it would never happen to you. I'm just saying this, because we still need GD for auctions. Also for their $7.99 transfer coupon back :P.

 

[Name Trader]

3. GoDaddy accidentally does not renew the domain they own, later claiming there was a system error when they renewed it. They said they renewed it but it was not renewed. GoDaddy’s WHOIS (not seller's) is reflected during the redemption period.

That is so crazy. Why have they not announced they had a "system error" until this thread. How many other customer accounts were affected by this system error. I'm not asking how many accounts were effected by these 33 domains. Was it just 1 system error only affecting a handful of domains owned by GoDaddy. Or were other accounts similarly affected by this "system error". If other accounts were effected, were they all treated in the same "fair" fashion? It doesn't seem plausible that it only affected 1 account which just happened to be GoDaddy itself. Has it happened before? Has the system error been corrected so it won't happen again? They should be transparent about these system errors. Not try to sweep it quietly under the table. Or use the system error to compound their wrong doing. If this was truely caused by a system error. It's saying that their Registrar system isn't a reliable platform. Other accounts would be affected. Were these domains on auto-renew? Why did it only effect a handful of domains bought from Yummy, and not all of them? Why did it not affect any other customers? The explanation appears dubious, at best. IMHO. Is there nobody checking manually that domains in their portfolio which are auto-renewed actually get renewed? It seems not. For such a huge company with such a huge portfolio, I think that is worth employing 1 more person to see that that actually happens. So that they don't have to steal domains back from other customers accounts. IMHO. GoDaddy made the mistake. They should have eaten the loss. Joe is quick to quote percentages justifying how very rare bad things occur. How about this one. Their loss would have be infinitesimal compared to their annual profits. And would have improved their goodwill tremendously. IMHO. Stealing domains is just wrong. Even when it's trying to rectify a "system error".

 

[Arca]

That is so crazy. Why have they not announced they had a "system error" until this thread. How many other customer accounts were affected by this system error. I'm not asking how many accounts were effected by these 33 domains. Was it just 1 system error only affecting a handful of domains owned by GoDaddy. Or were other accounts similarly affected by this "system error". If other accounts were effected, were they all treated in the same "fair" fashion? It doesn't seem plausible that it only affected 1 account which just happened to be GoDaddy itself. Has it happened before? Has the system error been corrected so it won't happen again? They should be transparent about these system errors. Not try to sweep it quietly under the table. Or use the system error to compound their wrong doing. If this was truely caused by a system error. It's saying that their Registrar system isn't a reliable platform. Other accounts would be affected. Were these domains on auto-renew? Why did it only effect a handful of domains bought from Yummy, and not all of them? Why did it not affect any other customers? The explanation appears dubious, at best. IMHO. Is there nobody checking manually that domains in their portfolio which are auto-renewed actually get renewed? It seems not. For such a huge company with such a huge portfolio, I think that is worth employing 1 more person to see that that actually happens. So that they don't have to steal domains back from other customers accounts. IMHO. GoDaddy made the mistake. They should have eaten the loss. Joe is quick to quote percentages justifying how very rare bad things occur. How about this one. Their loss would have be infinitesimal compared to their annual profits. And would have improved their goodwill tremendously. IMHO. Stealing domains is just wrong. Even when it's trying to rectify a "system error".

The 33 domains in question all belonged to GoDaddy and they took back all.

The GoDaddy customer support I talked to said the owner simply "forgot" to renew the domain that got taken from me, and framed it as them having to bail out the owner for their mess up.

Joe offered a slightly different version in this thread and stated that they paid to renew these domains, and that they were accidentally "listed in data we received from a 3rd party and listed in expired auctions." He also said that the domains "were not delivered correctly due to a technical error." WHOIS shows the names were in fact delivered to them prior to expiry. The argument that they didn't receive the domain, alternatively, didn't receive it correctly, doesn't hold water...

The domain WAS delivered to GoDaddy, this is evident from WHOIS records, so they messed up on the renewal. Secondly, the domains were not accidentally "listed in data" about expired domains and sent through GoDaddy auctions. The domains WERE expired, and therefore RIGHTFULLY listed for sale at GD auctions. Expired domains are listed for sale at GoDaddy auctions, that's how the system works.

 

[Arca]

I haven't read this thread. Just Arca's post above. That is the exact reason I don't use GoDaddy. Too many stories of GD's abuse of power.

You would never get anything similar at NameSilo in my opinion. That's why nearly all my domains are there.

As long as NS don't own domains and try to sell them for a profit, this is indeed not going to happen there. This kind of conflict of interest is not present at NS because they don't, afaik, own domains that they try to sell for a profit. Such secondary interest is not going to unduly influence their primary responsibilities as a registrar.

 

[Arca]

Their loss would have be infinitesimal compared to their annual profits.

Exactly, accidentally letting 33 domains out of their hundreds of thousands would have zero effect on them. They should have taken responsibility for letting domains expire, just like everyone else has to. It's quite a contrast I have to say, GoDaddy considering 33 lost domains to warrant these kinds of actions, yet they seemed to take lightly on their action of confiscating your 360 domains! So a megacorp losing 33 domains to expiration would be too big of a loss in their view, but for one individual to lose 360 domains is just fine with them...

 

[Name Trader]

Exactly, accidentally letting 33 domains out of their hundreds of thousands would have zero effect on them. They should have taken responsibility for letting domains expire, just like everyone else has to. It's quite a contrast I have to say, GoDaddy considering 33 lost domains to warrant these kinds of actions, yet they seemed to take lightly on their action of confiscating your 360 domains! So a megacorp losing 33 domains to expiration would be too big of a loss in their view, but for one individual to lose 360 domains is just fine with them...

Exactly. And I did nothing wrong. I had tried to do the right thing. I asked and followed the instructions of my then account manager. The hypocrisy is just stunning. Expletives Deleted.

 

[MapleDots]

Expletives Deleted.

Darn..... I don't often get to see stub use Expletives

Seriously though.....

Think about how much money go daddy must make just on expiring domains, they have zero investment and they even profit when they are registered. Then we bid them up and godaddy takes all the profit.

I brought this up before and was chastised for it, when I said go daddy should be kissing the asses of domainers and giving us the premium membership for free. I mean... imagine.... we even have to pay to participate in auction.

Damn nice racket if you ask me

 

[domainer111]

Without getting paranoid, I've been tracking four domains into closeout over the last few days. Only one appeared. Two I checked constantly from the immediate end of the auction, no sign.

Keeping a close eye on this. Perhaps they were renewed or somebody picked them up.

 

[wwwweb]

I completely agree. It would have been easy for them to just let these 33 expired domains go. After all they took them back for themselves and are now sitting on them.

As for their auction platform, between GoDaddy and DropCatch there isn't all that much for resellers to buy elsewhere anymore. These two giants have truly cornered the market and we are at their mercy, hence why they can steamroll their customers without backlash. Sad truth is that we need them more than they need us, so they don't have to pay too much attention to their reputation and trustworthiness. So while I promptly transferred out all eligible domains from GoDaddy account after this (and recommend others to do the same!), I see no option but to keep buying names at GD auctions... All bought names will be leaving my account on day 61 though, and I will refrain from listing them for sale immediately after getting them into my account in case GoDaddy later decides to take the domain back.

From a legal standpoint I would consider this theft, complicating the matter is a conflict of interest. It is essentially like a bank employee accessing your account to pay their own bills from it.


The fact they issued a $50
Gift card shows they know they are wrong, and that employee should be fired for going into your account, and starting a fraudulent account change.

I don’t know what TOS they are using to justify this, they need to be more careful they are a public compmay, a PR move like this can cost them tens of millions in stock market cap valuations. There should have been a discussion where they outline their TOS, and what procedural rights they have to take the name back, and if they can’t they should eat it.

 

[domainer111]

Without getting paranoid, I've been tracking four domains into closeout over the last few days. Only one appeared. Two I checked constantly from the immediate end of the auction, no sign.

Keeping a close eye on this. Perhaps they were renewed or somebody picked them up.

Update: Godaddy have told me in the first case there was a backorder on the domain.

I thought backorders showed up as a bid on the public auction, but perhaps not.

 

[Bluhorshoe]

That really is a shame!