GoDaddy Auctions -- Discussion, Acquisitions, and Sales

[Ms Domainer]

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I searched the forum and could not find a thread dedicated solely to Godaddy auctions, which seem to be heating up lately.

I envision this thread as a place for discussion regarding YOUR sales and acquisitions, and general discussion about the auction venue itself, and, perhaps, some domain oddities that are popping up on the auction site, for example, high-priced domains that should be regfee.



One caveat, though: for your own good, PLEASE do not reveal your auction win (or anyone else's, for that matter) until the domain has landed in your account because the original owner still has the option to renew it, and I know how vexing that can be. In other words, don't count your chickens until they're hatched.

On the other hand, if you're having second thoughts about your auction win, by all means tell us all about it.

I suppose that if an auction win is high profile, it's already out there, but, still...

Anyway, I'll start with three comments:

1. I won my first (and maybe last) intentional typo, and it's getting clicks (no $ so far, though): Forwx.com. I could not find a live TM on this term, but one never knows. I have mixed feelings about this one.

2. I accidentally clicked on a BIN that I didn't want (I wanted the one above it), but I decided to honor the bid anyway. Grrr..., so be careful before hitting the submit button. It's not in my account yet, so I can't really reveal it right now.

3. Currently, there's a weird .co domain at over $9,000, with three bidders duking it out. Again, I don't want to reveal what it is, but if you go to the most active auctions, it's number 1 (as of this posting).​

Mods, I hope this thread is okay.



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[Ms Domainer]

I don't believe that's what she is suggesting. I believe she is suggesting to run their normal auctions, but modify the day they actually move the domain to the account of the "Auction Winner" (in this case, day 45).

This will prevent the rare case that an auction is won, it is transferred to the auction winner on day 42, but before day 45 GD removes it from the winner and gives it back to the original registrant.

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Yes, that's what I meant.

I would suggest the following standard protocol for ALL registrars, and I would welcome other suggestions as well:

Days 1-30: Grace period; whether or not domain remains locked is still up to the original registrant. In other words, the domain can still be transferred out.

Days 28-37: Run auction (if the registrar or partners does this.) Note that this is 3-days later than the current start at Godaddy, which is day 25.

Days 28-45: Move domain into registrar lock/hold and institute premium renewal fee, not to exceed, say, $200.

Days 37-45: If a bidder wins the auction, the domain goes into a redemption week (which I refer to Hell Week, LOL). Meanwhile, the domain is LOCKED and cannot be transferred out by the original registrant, but it can still be redeemed.

Day 45: The domain is transferred to the winning bidder, and original registrant loses all rights to the domain.​

ADDED:

Days 46-70: IF the domain has NOT been awarded to an auction winner, the domain would go into a sleeper mode, BUT the original registrant could redeem the domain but at a premium price, not to exceed $200. (This would be unlikely, of course, but possible). The domain could NOT be redeemed by anyone else, including registrars themselves.

Days 71-76: Pending Delete Status. No one can redeem the domain.​

And equity78, could you ask Paul Nicks about what sdsinc has said about a registrar being able to reclaim a domain 80 days to 6 months after an auction?

Would Godaddy ever do this?

I think it's good if we can pin these registrars down and get this stuff out into the public eye.

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[Kate]

And equity78, could you ask Paul Nicks about what sdsinc has said about a registrar being able to reclaim a domain 80 days to 6 months after an auction?

Just to clarify, 6 months is an exaggeration, an example

In a normal setup up, the domain holder could have up to 45 days of grace period, then 30 days of redemption = possibly up to 75 days to recover his/her domain.

For example a domain at Enom will typically be put on auction 30+ days after expiry (non-renewal), an auction takes places, lasts for 3 days in case of multiple bidders, then the domain remains in auction lock for 6 weeks and cannot be moved in the meantime.
Do the math, we are at roughly 75 days.


Some registrars will even allow you to redeem the 'expired' domain at standard renewal rate. In a way they are actually doing the registrant a favor, because pulling the domain out of redemption would cost much more. If they want to get away with it, they have got to make gestures

 

[equity78]

What is funny even ICANN says on the page some registrar activity may not be reflected. They knew people would wonder how can they do what Kate has pointed out.

Kate what did you mean by: So they must 'deprive' the current holder of the redemption period normally granted to him/her. The tradeoff is that auctions may be reversed if the current holder decides to exercise his/her right to redeem the domain.

They are not depriving them right if they can renew or transfer after someone else wins the domain ?

 

[Kate]

If the registrars did abide by the intended rules - and in fact many of the smaller registrars do - then domains that are not renewed would be let in redemption, and the registrars would not run auctions in order to profit from expiring domains.

They let domains drop, period. But of course, they would be leaving money on the table. Auctions are more profitable than renewals. That is especially true for the bigger and older registrars.

In fact, I'm not saying the customer is losing out here, just saying that the intended redemption system is totally gamed by the registrars. That is not how it was supposed to work.

There are some ethical considerations as well, if you have nice domains the registrars (= custodians of your valuable online estate) have an incentive that you DO not renew them.

That would explain why some registrars apply additional penalty fees for late renewals even though the domain is still in grace period.

The problem is that money corrupts everything, and the registrars have smelled the money. Everything is fine as long as their interests and yours do coincide. But not all registrars are trustworthy and legitimate.

As a reminder: the auctions are mainly about gTLDs and certains ccTLDs. Most ccTLDs won't be auctioned upon expiry because the registrars cannot manipulate the full whois record (the registrant field), only the registry can and the changes must be initiated by the current holder.

We happen to buy quite a few 'prerelease' domains, so I'm not being judgmental, only explaining things: ie that Icann tolerates some bending of the rules.

 

[Ms Domainer]

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In an ideal world, the registrars would profit-share proceeds with the owner of the expired domain, an idea posed by Rob Hall (2007 ICANN Lisbon meeting):

http://archive.icann.org/en/meetings/lisbon/transcript-tutorial-expiring-25mar07.htm

I doubt if that will ever happen.

But the article is, nonetheless, fascinating reading.



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[Kate]

In an ideal world, the registrars would profit-share proceeds with the owner of the expired domain, an idea posed by Rob Hall (2007 ICANN Lisbon meeting)

I seem to remember that Netsol would grant the former domain holder 8% of the proceeds, on certain conditions. Not sure about that, and it was years ago.

At the very least registrars should be open and transparent about their practices.
I have a problem when registrars like Godaddy or Enom are not being upfront and attempt to confuse people with verbiage like 'Icann policy' or 'extended redemption period'. I mean, they are even confused about vocabulary themselves :gl:
Speaking of Enom, why do they keep such a distance from their offshoot Acquirethisname if they don't feel bad about it. And it's not an isolated example Afraid of bad rep maybe

 

[equity78]

Fabulous does, and I think if Go Daddy did they would increase their market share to over 75 %.

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In an ideal world, the registrars would profit-share proceeds with the owner of the expired domain, an idea posed by Rob Hall (2007 ICANN Lisbon meeting):



I doubt if that will ever happen.

But the article is, nonetheless, fascinating reading.



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[DU]

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In an ideal world, the registrars would profit-share proceeds with the owner of the expired ...

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That's ideal?

 

[Ms Domainer]

That's ideal?

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Okay, defaultuser, I'm listening.

Let's hear the downside of giving the former registrant a cut of the auction profits.

Actually, IMO, the entire domain auction system stinks (as it stands right now), but I doubt very if the system will change any time soon.

So, assuming that registrars will continue auctioning off expiring domains, my question to everyone:

How can the industry conduct expiring auctions in a manner that protects (to a reasonable extent) the rights of the former registrant and the rights of the buyer?​

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[DU]

I think NO auction would be more ideal.

I think straightforward consistency would be better.

I also think random drop times/days more ideal especially combined with registrar query throttling.

I'd also like to banish registrar partnerships and make domains be very simply either registered or not.

Black and white.

 

[DU]

How can the industry conduct expiring auctions in a manner that protects (to a reasonable extent) the rights of the former registrant and the rights of the buyer?​

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Write down the terms clearly.

If your know the terms you know your rights. End of discussion.

 

[Ms Domainer]

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Thanks, DU.

I think this is a good debate, whether or not we can agree. I just wish ICANN, etc. would engage in open debates like this.

TRANSPARENCY seems to be the main consideration.



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[equity78]

You make a good point Jennifer but imo ICANN is focused on the Golden Goose, new tlds and what that can make for them. I don't think they have any interest toward expiring auctions and the rights of the previous and new owner.

 

[DU]

You make a good point Jennifer but imo ICANN is focused on the Golden Goose, new tlds and what that can make for them. I don't think they have any interest toward expiring auctions and the rights of the previous and new owner.

I thought ICANN was non profit focused on world good

 

[Kate]

I also think random drop times/days more ideal especially combined with registrar query throttling.

Throttling is already in place.

Randomizing drop times will probably result in more queries spread throughout the day, and registry servers getting hammered all day long as a result.
In .uk for instance there are many dropcatchers/TAG holders, so Nominet sets 'quotas' to each. 400K+ queries/day is no too bad. But that is at the expense of efficiency since there is no precise time of the day when drops take place (afaik). So you have to 'waste' your quota in a linear manner. It's getting closer to a fair, free for all competition but the unpredictability results in a waste of bandwidth and resources.

I thought ICANN was non profit focused on world good

Yes, their own

 

[DU]

Throttling is already in place.

Randomizing drop times will probably result in more queries spread throughout the day, and registry servers getting hammered all day long as a result.

That's why I added days. I guess the same argument would still apply though. If the domain was to drop between 1 and 60 days after the drop designation it would be interesting to see. I thought this is how .de worked (maybe not).

My ideal throttle would be on the unenforceable concept of "manual consumer based queries".. oh well. I'm sure there's a fairer answer: how about everything has to be a paper form and mailed with a notary public stamp

Stricter throttling, random dropping, no partnering is an interesting start for discussion if there was actually any intent to actually ever change anything.

We admire your knowledge and expertise around these parts :loveyou:

 

[Kate]

My ideal throttle would be on the unenforceable concept of "manual consumer based queries".. oh well. I'm sure there's a fairer answer: how about everything has to be a paper form and mailed with a notary public stamp

It reminds me of the automated form submissions to netsol in the very early days... as soon as the domain would drop the scripts would fire up the applications :sold:

For .it domains there is (was ?) a similar process, as part of your application you have to submit a LAR (signed letter), some catchers have therefore automated the submission of the LAR by fax :blink:

The deletion process varies of course from one extension to another.
Some ccTLDs are quite predictable, others much less. But if you study carefully you can increase the odds of catching something But I am drifting :notme:

 

[DU]

For .it domains there is (was ?) a similar process, as part of your application you have to submit a LAR (signed letter), some catchers have therefore automated the submission of the LAR by fax :blink:

Italy was interesting in many regards when I worked for company that wanted to do instant hosting deployment (before cpanel )

Italy required a signed contract rendering the whole instant setup a waste of time. They also required a printed invoice.

Probably changed by now but your statement doesnt surpriaw me based on my history.

 

[Ms Domainer]

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Although this conversation is slightly off-topic, it is very interesting to see how dropcatching has evolved into what we "enjoy" now.

I think this is a case of where "going with the flow/floe" is warranted.

It seems to me that the current system, for all its faults and money-grubbing and warehousing, is actually a bit fairer than the old days of scripts.

Now, at least, the script-challenged have a better chance of acquiring a decent domain at a fair price (the truly premiums will always go for a lot of money).

Even so, I would like to see some reform and standardization. I think it will eventually happen, but probably only when a major registrar runs afoul of the law in a major way and the mainstream press gets wind of it.

Currently, the average news outlet really doesn't care about domain reform; heck, a lot of what they report about this industry is simply wrong.

And the average person barely knows what a domain is or even where to go to register one (This was me 6 years ago)!

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[Name Trader]

Hi Ms Domainer,

You never answered these questions, so lest you forget, I ask them again.

So do you now agree that GoDaddy cannot block a transfer of an expired domain and that they are following ICANN policy up to day 42 (at least) and do you now admit there is nothing cagey about domainers transferring expired domains out of GoDaddy?