NameSilo

GoDaddy Auctions: Not a Level Playing Field

Located in Domain Marketplace Reviews, started by DomainBanana, Feb 8, 2020

Replies:
28
Views:
1,209

?

Should GD Auctions continue to give big spenders special control over the GD aftermarket?

  1. No! It should be a level playing field for everyone.

    83.3%
  2. Yes, let big spenders dominate and let everyone else eat the crumbs.

    16.7%
Total: 24 vote(s)
  1. DomainBanana

    DomainBanana Established Member

    Posts:
    184
    Likes Received:
    218
    When you pay for your annual GoDaddy Auctions membership, you might think you're buying the chance to bid equally with other domain investors in the GD aftermarket.

    Unfortunately, this isn't the case. Because GoDaddy only grants API access to its top buyers, these buyers have a massive advantage in both auction and closeout purchases. They can control bidding on a large number of auctions automatically, and they can snap up closeouts before the average user even has a chance to see them.

    This is very wrong. Auctions should be a level playing field, where every bidder has an equal opportunity to secure a domain.

    When I tried to request API access by email, the auction team apparently lied to me about why I couldn't have access:

    Thank you for contacting Aftermarket support. Unfortunately we are currently not granting any new access to the API due to an impending update to the platform. This may change in the future however there is no expected time frame.
    ...
    There is nothing further that will be done at this time. We apologize for any inconvenience.
    When I contacted @Joe Styler about the case, he said the team "worded their response poorly":

    They are saying then that you don’t do the volume. It could be worded better. There is not an exact number it is more a case to be made that you cannot do the purchasing you are trying to do with the web interface.
    Joe could not give me an exact volume of buying that I would have to meet to gain API access. More troubling, when I tried to discuss the injustice of giving only some users API access for closeout purchases, Joe did not respond.

    I am stunned and disappointed by GoDaddy's unethical auction practices.

    How do other domainers feel about this?

     
    Last edited: Feb 8, 2020
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. JoeCanadian

    JoeCanadian Established Member ★★★★★★★★★★

    Posts:
    757
    Likes Received:
    65
  3. DomainBanana

    DomainBanana Established Member

    Posts:
    184
    Likes Received:
    218
  4. Samer

    Samer Top Contributor VIP

    Posts:
    2,429
    Likes Received:
    2,916
    Last edited: Feb 9, 2020
  5. pb

    pb Established Member ★★★★★★★★★★

    Posts:
    264
    Likes Received:
    496
    I had the same but the other way round. I asked Joe Styler first and he told me to ask via e-mail. And via e-mail I go the response that "we are not currently adding API accounts, as we are in the middle of a complete system rebuild". The asked me to ask again "Q2 (summmer) 2020 at the earliest", so I will and we'll see.

    Honestly I don't see how system rebuild could prevent adding api accounts while not interfering with the existing ones.
     
  6. DomainBanana

    DomainBanana Established Member

    Posts:
    184
    Likes Received:
    218
    Of course it's nonsense. Joe S. confirmed this in an email, essentially saying "system rebuild" is the lame excuse the auction team has invented for allowing elite domainers to own their auction system.
     
    Last edited: Feb 9, 2020
  7. DomainBanana

    DomainBanana Established Member

    Posts:
    184
    Likes Received:
    218
    If I were GoDaddy, I'd be embarrassed to run a sham auction site controlled by an elite mob of domainers.
     
  8. Samer

    Samer Top Contributor VIP

    Posts:
    2,429
    Likes Received:
    2,916
    worse, belittle ones who say unfair they dont have API access. you truly have to be “special”

    Samer
     
    Last edited: Feb 9, 2020
  9. Bob Hawkes

    Bob Hawkes formerly MetBob NameTalent VIP Gold Account Trusted Blogger

    Posts:
    5,913
    Likes Received:
    15,673
    Does anyone know how many accounts have API access to GD auctions?

    Do Snap, NJ do a similar thing with certain big accounts?

    Bob
     
    Last edited: Feb 9, 2020
  10. meslam479

    meslam479 Established Member

    Posts:
    72
    Likes Received:
    187
    I have requested API access too and this was their response.

    I'm not sure if this is the case, but I'm currently communicating with Joe.
     
  11. DomainBanana

    DomainBanana Established Member

    Posts:
    184
    Likes Received:
    218
    Thanks for sharing your experience. Joe told me the platform improvement excuse was not correct and that access would be granted if a buyer does sufficient business volume on the auction platform.

    Giving certain buyers preferential treatment on an auction platform is most certainly unethical and could easily be addressed if GD chose to do so.
     
  12. meslam479

    meslam479 Established Member

    Posts:
    72
    Likes Received:
    187
    @Joe Styler Could you please explain this?, I'm currently spending $x,xxx monthly in Godaddy auctions, why do I have to up my budget to 5 figures to get access to the API?
     
    Last edited: Feb 9, 2020
  13. DomainVP

    DomainVP Domain Expert VIP

    Posts:
    3,419
    Likes Received:
    12,483
    It’s like a concierge for people that spend more at the casinos. I know it’s not the popular vote, but I see nothing wrong with allowing big-spending clients the best way to continue to spend money with their platform.

    Joe specifically does everything in his power to accommodate all buyers. Asking for API access then trashing the man after a short conversation is short-sighted.

    HD spends more money on buying bad domains at $235 USD than anything else. That’s what their API access does for them.

    You just have to find ways to buy “better”, most domains that make it to closeout are trash compared to the ones that sell for $500+

    I stopped buying closeouts a long time ago, and I’m happier for it - and so are my finances.
     
    Last edited: Feb 9, 2020
  14. pb

    pb Established Member ★★★★★★★★★★

    Posts:
    264
    Likes Received:
    496
    So it's even less logical then. Big players may neglect closeouts without second thought, but for newbies they are crucial and sitting in front of the screen, waiting for the auction to end, then refreshing, then trying to add to cart and then fail - is not the best way to spend domaining time, especially knowing that some other people just set up their api-connected soft once a day and be done with it, while the rest is arbitrarily deprived of this option.
     
  15. DomainVP

    DomainVP Domain Expert VIP

    Posts:
    3,419
    Likes Received:
    12,483
    HD is notorious for picking up everything they can in the hopes that they sell more than they buy.

    I did a consultancy with a dropcatching service that wanted to know their “formula” for picking names - it’s broad and not as methodical as you would think. They just suck up everything, you should see the handregs they buy after the drop.

    nothing new here, you know this.

    So they scoop up all of the trash in the hopes that they sell - closeouts included.

    the lesson for “newbies” should be not to buy as much as possible but to instead buy better quality names and not play the HD game that they clearly have an advantage at.

    Don’t they pay a fraction on the renewal fees as well? I think that’s the real heist here. Having API access is laughable with respect to having an advantage on the entire industry.

    Newbies, do research and buy the best $300+ domain you can find. Find buyers, and repeat.

    Praying to get closeouts nobody bids on is a dead game.
     
  16. tonyk2000

    tonyk2000 Top Contributor VIP ★★★★★★★★★★

    Posts:
    1,782
    Likes Received:
    2,661
    Yeah. However, I'd say that the whole picture is somewhat more complicated. Technically, a selected group of customers (bots) is frequently competing with each other... and, one some occasions, with humans... Big data analysis may give a better idea of what exactly is happening and why. By big data analysis I also mean extended analysis (with a level of complexity similar to analyzing unique google advertising IDs on parking pages - such an analysis occured in namejet shill bidding thread some time ago). And, some bot owners may be right here, right now.
     
  17. DomainBanana

    DomainBanana Established Member

    Posts:
    184
    Likes Received:
    218
    I'm not trashing the man. I'm protesting the unethical auction practices.
     
  18. DomainBanana

    DomainBanana Established Member

    Posts:
    184
    Likes Received:
    218
    It's a dead game because the ones who have API access win every time.
     
  19. wwwweb

    wwwweb Top Contributor VIP ★★★★★★★★★★

    Posts:
    10,722
    Likes Received:
    10,666
    Auctions are actually heavily regulated on a state level, I would think they call themselves a marketplace as if you start looking at state rules
    on how auctions are supposed to be handled, this would be game over.

    I really tend to agree huge domains has been given every chance to game the system, first it was with the backorder loophole, and once that was exposed, the API closeouts were setup for them to game, this is a very cozy relationship. I really despise huge domains for bidding people up hundreds of dollars just based on a single $12 bid.

    What does it matter what you spend you could buy 100 $11 closeout domains a month for $2000, if given access, but based on their disclosure of not granting anymore access due to a never ending update process, it really doesn’t seem fair.
     
    Last edited: Feb 9, 2020
  20. tonyk2000

    tonyk2000 Top Contributor VIP ★★★★★★★★★★

    Posts:
    1,782
    Likes Received:
    2,661
    They still need humans. Without humans, the whole system as we see it will collapse and soon. Imo.
     
  21. wwwweb

    wwwweb Top Contributor VIP ★★★★★★★★★★

    Posts:
    10,722
    Likes Received:
    10,666
    You mean lemmings

    42BDD098-0D00-4743-9EB9-E9494FDCE4EF.jpeg
     
    Last edited: Feb 9, 2020
  22. Abdullah Abdullah

    Abdullah Abdullah Top Contributor VIP

    Posts:
    2,994
    Likes Received:
    3,525
    I think the last time I participated in GD auctions was like 5 years ago. I have seen at the time it was not normal at all so I decided to never participate.
     
  23. nivadriver

    nivadriver Established Member

    Posts:
    181
    Likes Received:
    283
    I have the ambition of growing big enough for API access but I'm an idiot when it comes to development. Assuming one is granted access, can anyone here provide some color on how to build the not?
     
  24. wwwweb

    wwwweb Top Contributor VIP ★★★★★★★★★★

    Posts:
    10,722
    Likes Received:
    10,666
    You know what your going to end up with some over priced inventory. Prices are sky high right now, and unless you already own existing aged inventory that you can fall back on to balance things out, any type of economic shakeout is going to cause you some serious financial risk given what people are outbidding for these days. Some sales are getting close to end user levels, factor in a 20 percent commission, and you are working for break even in some cases.
     
  25. pb

    pb Established Member ★★★★★★★★★★

    Posts:
    264
    Likes Received:
    496
    That is easier said than done. I've bid mid-xxxx on some domains and still lost. Otoh there are some domains that are overlooked on auctions and yet snatched the moment they enter a closeout. If everyone had equal access, the more picky domainers would have a better chance to win against hoarders.

    Anyway, not everyone has "$300+" to burn on their first domain. I literally started by hand-regging two domains for ~$18/each and pushing them for ~$50/each, then using this money to reg more domains and so on - until I could even think of bidding on any better domain myself. Nowadays, for newbies, I would think closeouts could be the best starting venue, but of course I can be mistaken, as I'm only (re)starting myself.
     

Want to reply or ask your own question?

It only takes a minute to sign up – and it's free!
Topics / Tags:
NameWorth
  1. NamePros uses cookies and similar technologies. By using this site, you are agreeing to our privacy policy, terms, and use of cookies.
    Dismiss Notice
Loading...