information GoDaddy to increase closeout starting prices to $50

[JudgeMind]

Godaddy will be increasing their starting price of closeouts to $50. The pricing structure will go as follows:

Day 1: $50

Day 2: $40

Day 3: $30

Day 4: $11

Day 5: $5

This news is causing a stir in the industry and some are pretty upset. You can read in more detail about the price increase here, courtesy of domainnamewire - GoDaddy to change closeout auction pricing - Domain Name Wire | Domain Name News

 

[Bob Hawkes]

I wonder if their auction membership will stay $5 or what

They have already announced that auction membership fee is now approximately double the old price. However, those who do not let their auction membership lapse, can renew at old price I believe (thread somewhere on NamePros that Joe S said that).

 

[Fadi H]

OK GoDaddy we are all trying to make money and i don't think we gonna meet here, I'm out.

 

[Samer]

I didn’t even know GoDaddy was publicly traded ..the foundation is the company it self before the stock ...

Ticker: GDDY

 

[DanSanchez]

I am all for diversifying with multiple asset classes.

Pretty much any asset is an inflationary hedge from domains, stocks, collectibles, precious metals, crypto, etc. I personally don't really see anything that special with bitcoin vs any of the other inflationary hedges.

With domains if the USD value goes down in theory it should drive prices up, while at the same time making the fixed cost of renewals less of a factor.

Brad

It's mostly because of the scarcity of the asset. All those other assets are not really scarce and this is especially true with real estate. The cost of carrying an increasing tax burden on property will definitely be a deterrent for most owners to capitulate while they can. The other assets are tightly controlled and can be confiscated by a tax hungry authority.

Bitcoin is sovereign liquid capital, transferrable to anyone and anywhere for any reason. I'm allocating more and more to bitcoin as a store of value, but also as opportunity capital in case a great domain comes up for sale. You might never be able to sell your RE or other assets in time to have the capital to make an aggressive move on a distressed asset.

Bitcoin in 2021 will be domainer's #1 against financial distress and protection of long term value.

 

[Name Trader]

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

 

[spikedo]

@!(^#!(* 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.

 

[Name Trader]

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.

 

[DomainVP]

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%?

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.

 

[equity78]

Rumour has it API in closeout is kaput.

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

 

[Oskar P]

ok
so here come the crazy move from Godaddy
so i just checked for a domain at 50$, it will cost me 50+8.99+ taxes =71.38$ (21%taxes)

GoDaddy likes to add many layers to your purchase. What you initally thought you would pay ends up being much more. The 1 year of registration is often for much higher than the average registrar. And if you're using a different currency than USD you bet the price will be even higher.

 

[twiki]

This change has actually made me buy more. I've started buying consistently after the change has implemented. So it depends. I didn't expect I would do this but life is always a surprise.

The change raised the price barrier a lot. So now I can find significantly better names; which I'm okay to pay for at that higher price. Previously they were bought quick so i was left with not much worth it. It also obviously makes GD richer, that's the downside.

This move, I think, favors those with a larger budget, willing to pay more for domains that they are definitely sure will sell for an overall profit.

It's much more risky now; if you're not 100% sure what you can sell and how much for. So many domainers have moved out of closeouts - and I definitely understand that.

 

[tiletalk]

it will all be about who caves first and buys it at a higher price! win win for godaddy... they are the king who why not

 

[Alop]

GoDaddy you are more than welcome to comment on the monopoly as the insider trading was always prohibited

 

[Ostrados]

People started uninstalling WhatsApp and switching to other Apps, what happened next? WhatsApp reversed its decision and it is no longer needed to accept the new privacy terms.

If Domainers stop buying from Godaddy auctions, what will happen next?

 

[bmugford]

GoDaddy stock was $25 four years ago. It is $85 now. GD stockholders couldn't care less if a domainer on Namepros cries about Closeout price on GD Auctions. Only thing they are interested in is how many dollars they earned in these 4 years. On each invested dollar they earned more than $3.

There is a difference between market cap of a company and financials. The valuation itself can largely be attributed to an irrational valuation based on their actual financials.

According to Seeking Alpha they have had 3.2B total revenue in the last (12) months, and a net income loss of 507M.

In 2017, 2018, and 2019 they had very small net income profits of 136M, 77M, 137M.

As a stock itself they have a bloated valuation based on their current financials.

Brad

 

[Alop]

I wonder if their auction membership will stay $5 or what

 

[Corey]

The law of Supply and Demand folks -

A decrease in demand will cause the price to fall; quantity supplied will decrease.

Cheers
Corey

 

[Samer]

Rumour has it API in closeout is kaput.

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

 

[King]

OMG I am so surprised (not)

 

[daniallaw]

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.

 

[Nerevar]

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.

 

[equity78]

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

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

 

[privatereg]

this will take effect when ?

Feb 1

 

[Jv1999]

WTF GODADDY JUST INCREASED .COM TRANSFER PRICES TO $8.99!!!!!!!!!!!!!!!!!1

I UNDERSTAND THE CLOSEOUTS PRICES BUT WHY TRANSFERS?!?!? WHY?!!

 

[UncleBrand]

Today is February 2nd

just got a nice closeout at the standard 9$+renewal

so it seem they changed their minds about this increase in prices