Is This True? Does Any Other Registrar Do That?

[NP41215]

I came across an article in which the author wrote:
"I thought it was great too when Network Solutions auctioned off some of my expired domains and sent me a check for my share of the gain."

See Paragraph 2 of the followng article:
http://www.revenews.com/adamviener/2006/08/godaddy_cashparking_not_such_a.html

If true, does anyone know what the percentage is that NetSol pays out from an expired but auctioned domain to its ex-owner? Are there other registrars that do so?

 

[Jo]

I asked that question last week on here.

Look what I found when searching Google...this is from the year 2000 when Network Solutions announced their auction plans for expired names...

tidbit:

'the redirection of soon-to-expire names into Network Solutions' upcoming auction site could be in violation of the accreditation agreement registrars sign with the Internet Corporation for Assigned Names and Numbers (ICANN), which oversees the domain name industry.

"We're very very troubled by this latest in what we see as very unfair and (possibly) illegal practices by VeriSign." '

http://www.wired.com/news/business/0,1367,37191,00.html

 

[RJ]

Yes, I've made a few hundred bucks myself by letting Network Solutions names expire. The cut to the original registrant is small - only 1/8th of the final auction price.

 

[DropLister]

i should transfer all my crappy names and let em drop lol, see how it goes

 

[NP41215]

The original article was dated August 1, 2006, I believe. Supporting its recency is the fact that it talked about GoDaddy's CashParking, a recent new entry into PPC market.

So it would seem that Network Solutions is offering some share of proceeds to the owner of expired domains. How nice a gesture it is depends on the percentage, of course.

But if it is true, it is a good start and hopefully other registrars will do the same. After all, it is only fair, as some good domains that expire regularly fetch US$thousands or more.

I recall NetSol's registration fee was very high, making it unattractive as a registrar. I suppose it is now much lower than $35 per year. Wonder how low it gets these days at NetSol. But I doubt it will be anything like $7 or less. Does anyone know?

If the ex-owner's share of domain auction proceeds is >=50%, and if NetSol's domain registration fee is under $10, it may be worthwhile to transfer over to NetSol domains that one does not want to keep or renew, and then let them expire and be auctioned off at NetSol for a share of the proceeds.

Why so, rather than trying to sell the domains onself? Because the bidder/buyer population in the expired domain market is huge, many times greater than that of Sedo or Afternic, I believe. Otherwise one cannot explain the very high prices that expired domains regular fetch in such auctions.

The key, of course, and again, is the percentage that the ex-owner of the expired domain gets to share, to make i attractive or worthwhile.

To bad, there is not much competition, if any, among registrars in such auctions, at this time.

Yes, I've made a few hundred bucks myself by letting Network Solutions names expire. The cut to the original registrant is small - only 1/8th of the final auction price.

Only 1/8? That sucks.

 

[Dave_Z]

Rather "old" news since it actually started last year. But yes, many registrars
are doing this.

They're aware many registrants won't like this, so why not give an incentive?
If the registrant loses his/her domain name because it wasn't renewed on time
and was subsequently auctioned, it's not a "total loss" since they're getting a
cut from the auction proceeds.

It's a win-win scenario. The one who made the backorder (or highest bidder)
wins, the registrar wins, the backorder partner (if any) wins, and the registrant
wins.

And according to the source itself:

http://www.networksolutions.com/help/index.jsp?viewpage=category.php?id=89

As described in our in our Service Agreement, customers are eligible to receive between fifteen and twenty percent (15-20%) of the Net Proceeds generated from the Direct Transfer.

So if the total auction amount was $5000, the registrant gets roughly 15-20%
of that. The catch is for the registrant to make sure the contact details are
updated so Netsol will know where to send the cut to.

 

[RJ]

And according to the source itself:

http://www.networksolutions.com/help/index.jsp?viewpage=category.php?id=89



So if the total auction amount was $5000, the registrant gets roughly 15-20%
of that. The catch is for the registrant to make sure the contact details are
updated so Netsol will know where to send the cut to.

The registrant gets a percentage (15-20%) of NetSol's share, which is somewhere around 50% of the final auction bid price. Snapnames gets the other 50% of the gross bid price.

Auction total $5k
SnapNames share $2500 (assumed)
NetSol share $2500, of which $500 goes to original registrant.

It's been a while since I've had names at NetSol. I thought it used to be 25% to registrant. At any rate, not a great plan for making money..

 

[NP41215]

Competition should yield the registrant 80% of the gross proceeds. Clearly, we're far from that (only 50%x20% = 10% or so).

Obviously, any registrar that also offers such expired name auction service with a high percentage to the registrant will quicky capture the largest market share from other registrars, provided it also offers competitive domain registration fees.

Clearly, more competition is sorely needed.

 

[RJ]

Would you transfer your domains to a registrar that offered you a higher percentage of the proceeds when your domains drop?

 

[Netsilver]

Now I know, why I had received a $12 cheque from NetSol.
Thanks.

 

[Lasher]

Other things equal such as price and service level? Absolutely. I've always wishes there was a way to get my names into the daily snapnames feed without letting them drop .. seems this is the closest thing to it right now.

Might not be a bad business idea for Snap to let people do this with their domains though, a 'fake drop', you get 50% they get 50%. I'm assuming they haven't because it would tick off the registrars who provide them with the expired domains.

Would you transfer your domains to a registrar that offered you a higher percentage of the proceeds when your domains drop?

 

[Jo]

Other things equal such as price and service level? Absolutely. I've always wishes there was a way to get my names into the daily snapnames feed without letting them drop .. seems this is the closest thing to it right now.

Might not be a bad business idea for Snap to let people do this with their domains though, a 'fake drop', you get 50% they get 50%. I'm assuming they haven't because it would tick off the registrars who provide them with the expired domains.

Me too, if it wasn't too much for their services...I think it's quite expensive at NetSol to register and renew isn't it?

 

[Dave_Z]

Me too, if it wasn't too much for their services...I think it's quite expensive at NetSol to register and renew isn't it?

They're aware their prices are quite big. But it's because of their biz model.

Aren't you glad you've got choices?

 

[NP41215]

Would you transfer your domains to a registrar that offered you a higher percentage of the proceeds when your domains drop?

Likely, if the benefit/cost ratio is highly desirable when compared to the alternative of selling the domains by oneself and when compared to other competitive offers.

Of course, the normal considerations of functions, features, ease of use and related benefits of a registrar's services vs. other registrars remain important.

On balance, if it is worthwhile, yes.