Unstoppable Domains

Godaddy to increase closeout starting prices to $50

Labeled as information in Domain Industry News, started by JudgeMind, Jan 15, 2021

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  1. Bob Hawkes

    Bob Hawkes Top Member NameTalent VIP Gold Account Trusted Blogger

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    Maybe I am confused. Yes you are right.
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. Page Howe

    Page Howe Top Member PRO VIP Gold Account ★★★★★★★★★★

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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..
     
  3. Samer

    Samer Top Contributor VIP

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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?
     
    Last edited: Jan 17, 2021
  4. wwwweb

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

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    Rumour has it API in closeout is kaput.
     
  5. Samer

    Samer Top Contributor VIP

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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
     
    Last edited: Jan 17, 2021
  6. tomcarl

    tomcarl Top Contributor VIP

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    Drastic changes in such short periods of time, the perks of having a monopoly.
     
    Last edited: Jan 17, 2021
  7. stub

    stub DNStore.com PRO VIP ★★★★★★★★★★

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    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 :)
     
    Last edited: Jan 17, 2021
  8. Jv1999

    Jv1999 Wander Aimlessly: Redeemed Knight of the Exo-Tower VIP

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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
     
  9. Mohit Singhania

    Mohit Singhania Heritage Names Blue Account

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    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.
     
  10. spikedo

    spikedo Top Member VIP ★★★★★★★★★★

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    @!(^#!(* 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.
     
  11. DomainVP

    DomainVP Domain Expert VIP

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    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.
     
    Last edited: Jan 18, 2021
  12. stub

    stub DNStore.com PRO VIP ★★★★★★★★★★

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    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.
     
    Last edited: Jan 18, 2021
  13. DigitalRoar

    DigitalRoar Investor & Creator VIP Gold Account

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    OMG I am so surprised (not)
     
  14. DomainVP

    DomainVP Domain Expert VIP

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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.
     
  15. Nerevar

    Nerevar Top Contributor VIP

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    It's the natural order of things. Become monopolist -> raise prices -> people leave -> stop being a monopolist.
     
    Last edited: Jan 18, 2021
  16. stub

    stub DNStore.com PRO VIP ★★★★★★★★★★

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    Sounds a lot like cPanel :)
     
  17. twiki

    twiki Top Contributor VIP Gold Account

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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.
     
    Last edited: Jan 18, 2021
  18. Ostrados

    Ostrados EpicName.com VIP

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    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
     
    Last edited: Jan 18, 2021
  19. pablohc86

    pablohc86 Top Contributor VIP ★★★★★★★★★★

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    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 :xf.laugh::xf.laugh::xf.laugh::xf.laugh:
    they are so sweet :happy:
    thanks Godaddy :ROFL:
     
    Last edited: Jan 19, 2021
  20. daniallaw

    daniallaw New Member

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    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.
     
  21. GeorgeQuang

    GeorgeQuang Established Member

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    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).
     
  22. Nerevar

    Nerevar Top Contributor VIP

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    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.
     
  23. Bookman334

    Bookman334 Upgraded Member Gold Account

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    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...
     
  24. equity78

    equity78 Top Member TheDomains Staff TLDInvestors.com PRO VIP ★★★★★★★★★★

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    I spoke to Paul Nicks just now and it's not going away. No changes to the API.
     
  25. equity78

    equity78 Top Member TheDomains Staff TLDInvestors.com PRO VIP ★★★★★★★★★★

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

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