GoDaddy Auctions: Not a Level Playing Field

[DomainBanana]

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.
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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?

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[nivadriver]

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.

I'm mostly a closeouts investor myself. Every 100 names or so I'll chase something into xxx or low xxxx range. I would like to improve my chances of snapping the attractive closeouts by using an API script. I assume the API people are not putting up signposts on the road they travelled, but a simple cairn would be appreciated.

 

[wwwweb]

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.

API closeouts are a thank you, for bidding up all the yuppies that don’t know any better and play into the $12 bid game, all the way into the hundreds, as if they are up against an actual user. It’s a reward, otherwise no human can ever win a closeout. Otherwise they are ok with creating unfair advantages for such users, over others, I can’t think of any other reason to allow bots game closeouts.

 

[pb]

I've just realised I missed all of today's auctions (with bids) in which I planned to participate. Well, if I had the api access...

 

[Joe Styler]

I responded on the existing thread that covers this https://www.namepros.com/threads/huge-domains-sniping-godaddy-closeouts.1135689/page-21