Godaddy Domain Name Aftermarket
TDNAM.com how does it effect the expired domains industry?
Over the past year many things have changed in the expired domains game. Domain auctions : NameWinner.com changed from a minimum bid of $8.95 to a minimum bid of $40. Pool.com pops up on the scene and negotiates new deals with registrars for direct lines to the registry. Snapnames.com changes from a first come first served, one backorder per domain, to an auction format, and instead of refunding customers, applies the money to credits for the auctions. Enom.com itroduces club drop another auction format, leaving Godaddy as the only possible solution for getting an expiring domain for under $20.
Godaddy then announced exclusive backorders in February, for domains that were registered at godaddy.com, blue razor, and wild west domains. It was explained that people could backorder a domain for $18.95 and be guaranteed a domain registered with one of these registrars, if the domain expired. It took a few of us awhile to understand that a domain registered with godaddy had to be backordered at godaddy to become locked (if you backordered a domain at wild west but the domain was registered with godaddy, the backorder would not be available at the other service, but the domain would follow the normal expired domains drop cycle and could be caught by any service).
The following from GoDaddy support posed in february 2005….
- Are all back orders through DomainAlert for Godaddy domains that are expiring now “guaranteed” through this (DomainAlert) service?..
Godaddy Support’s Response:
“…We still do not guarantee that the backorder will secure the domain, because it is still possible for the original owner to renew the domain while it is in the grace period, and also possible for the original owner to retrieve the domain from Redemption. However, if the original owner does not try to retrieve the domain during the grace or redemption period, then yes, you would be guaranteed to secure the domain with the Backorder as no other registrars would have access to the domain because it is still in our system…”
I also posed the question of a future change to a domain auction model.
Godaddy Support’s Response in February 2005:
“…At this time we do not have plans for a domain Auction, but can make no guarantee that we will not do so in the future…”
So why would I buy a few thousand dollars in backorders, devote 2 months to compiling a list from the zone files of all domains registered with godaddy, wild west, and blue razor. Take the time daily to review the stats from overture, alexa, linkpop, etc.. on these domains, and backorder them up to 2 weeks before they expire, then switch the backorders of the renewed domains to others?
Because Godaddy support also made this statement in response to my question of “Why would I buy backorders if godaddy can’t guarantee that they won’t change to an auction format tomorrow?”
Godaddy Support’s Response in February 2005:
“….While we can’t guarantee that we won’t change to an auction format in the next 6 months, we currently do not have plans to do so, and you can feel comfortable about not having to worry about that for at least the next 6 months…”
6 Months? That was almost the end of February, this is now the beginning of May.
I never figured Godaddy for a fool to pass up the opportunity to not enter the domain auctions venue, but also did not expect to be lied to about their future plans..
It will be very interesting to see how Godaddy handles my situation. With hundreds of backorders that are now virtually useless, because of false information from godaddy support.
The new tdnam.com Domain Name Aftermarket model:
“GoDaddy sends all expired domain names registered with godaddy to auction approximately 10 days after the domain expiration date. If no bids are made on the domain at auction the name will be awarded to the back order holder. If a bid is made, the domain will be awarded to the high bidder.
Your backorder is still a supposedly a valuable asset, it can be used to attempt to capture expiring names from all registrars and will capture names at GoDaddy that do not receive a bid. ”
The minimum bid for a domain auction is $25, but one thing that is not clearly shown on the pages is that the winner of the domain still has to pay the $25 and an $8.95 renewal fee for the domain, then wait 45 days to take ownership of the domain. If the original owner renews tha domain within 45 days, then you get a refund.
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Questions:
Do domains registered with wild west domains and blue razor go to auction at tdnam.com now, or are these domains still exclusive drops?
If a winner of an auction does not pay for the domains, is it then given to the Backorder holder or is it sent back for a second domain auction at tdnam?
Domains that are already locked for exlcusive backorders will soon be auctioned or are they given to the backorder holder?
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This auction format has many flaws IMO. Many people will manipulate the system and godaddy will in essence be cutting themselves out of making any money (except the renewal). I think that they need to reevaluate this sytem and start the auctions when the domains are actually ready to be assigned to a new registrant, not when the original owner can still renew the domain. Godaddy Customer Service is bad enough, we surely don’t need added tasks for them to have to refund 50% of the successful auction fees that are paid, or maybe they are banking on drawing 45 days of interest on our money.
I will keep this thread updated with the replies from Godaddy customer support about my thousands of dollars in useless backorders.
Sidney Parfait
DropWatch.com
May 6th, 2005 at 10:13 pm
You definitely have a right to be upset. GoDaddy wasn’t very vocal about its changes in February. They saw the chance to grab some cash, but at what cost? Upsetting a power user like you? You see this a lot in all industries — David works hard to beat Goliath (i.e. NetSol), then takes advantage of the position and becomes the new Goliath.
May 31st, 2005 at 6:29 am
I am amazed to hear this. This basically means that godaddy backorders are useless for trying to get high value domains. For instance, if I backorder a 3-letter .com domain, according to the above, if it is put on auction and fetches > $10 (it certainly would), my backorder is useless.
The $18.95 backorders are very misleading.
July 24th, 2005 at 11:32 am
I have had very similar experiences with GoDaddy sites.
Have you read Parson’s blog?
At the very start he tells how GoDaddy came into existence and claims that GoDaddy will ALWAYS put it’s customers value 1st.
I pointed out his comments and GoDaddy’s actions contradict each other.
Naturally he didn’t allow that to be posted.
I imagine you already know this, but just incase, president@godaddy.com will reach some more senior personel within GoDaddy. Get’s you past the typical phone support.
But I haven’t seen that that makes any difference yet. Just a higher rank of BS.