Many people are making money online by buying domain names at a lower price from domain name auction houses. They make an extra amount by selling the names to buyers at a higher price. Just like buying a commodity for a lower price and selling it at a higher price, the same applies to domain names. This process is known as domain flipping. Domain name flipping has become a common occurrence, facilitated by outstanding companies, which auction domain names. One such reputable domain name registrar that has gained worldwide recognition with its domain auction house is Godaddy.
Understanding the Godaddy Auction House Functionality
Godaddy auction house is an online market platform where buyers and sellers meet to exchange domain names. Godaddy allows sellers to list their domains and sells them to willing buyers who have the highest bid. Once the domain gets a buyer, Godaddy charges a small fee to the seller. Through the auction, buyers can broker a domain name that is soon to expire at an affordable price. The price is usually lower when the domain bidding period is soon going to expire. Chance of being the only bidder of a domain are high when the bid period is almost over, giving buyers the opportunity to buy the domain at a lower price. If Godaddy finds no bid for a domain, the company will delete the domain name and make it available for a hand registration. Godaddy not only facilitates selling of the domain names but also sells some domain names at the auction house. When domain buyers are unable to renewal their domain name for whatever the reason, the domain is taken back by Godaddy. A good number of people allow their domain to expire every day while some come to a point where they no longer need the domain. Since the domain registrar wants to make money from the non-renewed domain, they send the domain back to the auction house.
How to Auction Domain at Godaddy
The seller should start by creating a free account with Godaddy. The seller sets the search results to display the frequency at which to receive text message alerts. The account will have details of the default payment type, auction listings to view per page, enabled or filtered adult domain names. Buyers are allowed to search through domain names coming before the bidding period expires. The domain auction house allows people to list as many domains as they wish. To accomplish this, the seller needs to list the domain name as an Offer Counter, Offer or Counter Offer with Buy Now auction type. Counter Offer with Buy Now auction type is considered a violation of Universal terms of service that the seller agreed upon while setting up Godaddy auction account. If the domain name is listed as a Public Auction, the seller can only list it with Godaddy. The site offers an amazing Afternic promotion where buyers can instantly can purchase immediately sell their premium domain names in a hassle free mode. Afternic is a premium domain name market with more than five million premium domains in the market. Domain dealers need to create an account with Godaddy to include their Afternic domains listing.
Buyers and Sellers Verification Process
Godaddy auction house has a simple verification process aimed at protecting both the buyers and sellers of domain names. To be fully verified, both must provide their PayPal contact details. The information is meant to protect the two parties from fraudulent activities at the Godaddy auction house. There are two types of auction inventory at Godaddy that require verification. Value Priced, which refer to domain names, have been reacquired by Godaddy and are being auctioned. The second auction inventory that requires verification is Expiry Auctions. These are domain names that have expired, not yet renewed and available for auction.
How to Get a Registered Domain Not Available at Godaddy
Godaddy allows buyers to get a registered domain that is not available at the auction house. Using a service known as Our Domain Buy Service, Godaddy assigns an agent to the buyer who will work to contract at the current registrant and negotiate a transaction on his behalf. The service is meant to protect the buyer and guarantee that the money demanded together with the domain name are exchanged once the transaction is finalized.
Godaddy's Push to Auction Service
The company's domain auction house offers a useful service known as Push to Auction; a feature that lets the dealers convert their domain name listings from Counter Offer to a 7-Day Public Auction. When the buyer chooses to push the counter offer listing to bidding, the offer will be the opening bid in the seven-day public auction. Since Godaddy converts the offer to bid, it's not possible for the buyer to cancel the listing or add a reserve price after the Push to Auction. In case a listing made by the buyer to Push to Auction has multiple offers, Godaddy makes the highest bid to become the opening bid, and all the pending offers are then canceled. Domain names are added to watch list for every member who made an offer. The members who made the offers are informed of the change and given a link to the auction.
Higest Bidden Might Not Get the Domain Name Here
There is no guarantee that the highest bidder will get the domain name at Godaddy. Reasons include failure to meet the reserve price for the domain name set by the seller. For the buyer to win auctions that have a reserve price, they must either meet or exceed the reserved price. The highest bidder may also fail to get the domain name in case the auction house decides to extend the duration of the auction. Godaddy may extend the time when there are several bids brought at the last moments, and the auction is set to end.
How to Make Profit with Godaddy Auction House
1. Identify the correct domain to flip
Buyers need to develop strategies for identifying great domains to flip. Having a poor domain name is risky and can bring losses. Some names cannot fetch buyers since they are naturally unappealing. The secret lies in identifying a domain name that buyers will want. One key strategy to use is to look for people who have sites that relate to the domain name. For example, if buyers purchased a domain name like newairlife.com, they can use search engines like Google to identify sites that deal with air activities or animals that live in air. Get their contacts and email them requesting if they are interested in the domain.
2. Create an online payment account
To make money online by flipping domain names using Godaddy auction house, buyers start by creating an online payment account that will facilitate payment transactions. Arrangement for a simple payment through the internet since domain name auction takes place over the internet. Escrow and PayPal are some of the best accounts to use with Godaddy auctions.
3. Sell Domains for 100% profit
To be always on the safe side, always sell domain names at Godaddy auction houses with a 100 percent amount of the buying price. If one wins a bid at the auction house for a domain name valued at $1000, and then set the selling price at $ 2000. While it is not a rule, it is a good way to ensure that buyers get a worthy profit for their domain.
4. Identify expiring domains
Buyers should consider buying domain names that are older. These are the domains that are being auctioned after owners failed to renew them. The dealer might get lucky and find a domain name that every buyer wants. Not only consider older domains but also go for premium domains.
5. Deal with domains that have generic names
Using words, which describe a product or service is a great investment in the domain auction market. Buyers want domain names that explain their businesses and organizations. If a buyer is bidding for a domain at Godaddy auction house, then they should make sure the domain has a generic name. They should also consider domain name that describe geographical locations. It will sell to web developers seeking to create a website based on geographical locations.
6. Figure out why the owner of the domain name decided to drop
Dealers should try to figure out why the owner of the domain name decided to drop it. Knowing the reason will help the buyer avoid purchasing inappropriate domain names that may never be bought. When one buys a domain, his expectation is to sell it at a higher price. Although it is not absolute, getting the right domain name will not only get one a high profit but also attract a lot of bidders for the domain. Use tools like DNSalePrice.com to compare the pricing of previous domain names.
7. Go for the Top –Level Domain (TLD).
Domain buyers must ensure that they have the most sought after domain names. For incredible outcome, they should go for the Top –Level Domain (TLD). These are domains that end with .com, .net and .org will get a higher price and more buyers than domain names that end with names like .biz. Dealers should avoid domain names that make no sense. These are named like frlllk.net, ilfgr.com, re.com. Buyers will evade purchasing such names since nobody will remember such names making it difficult for website users to search for the name in search engines. Keep off misspelled domain names and one with many symbols and wordings.
8. Auction during evening hours
Auction the domain names at Godaddy auction house during evening hours when people are home after work. The strategic time will see many buyers flocking the auction house, unlike daytime hours.
9. Generate traffic for the domain
Buyers can improve the value of the domain by forwarding that simple domain name to a web page. Doing so will generate traffic for that domain. Since the domain may take several days or months before getting to the right buyer, it's good to increase its value rather than keeping it parked up displaying only a website notifying the visitors that the domain is parked.
10. Identify the key value for the domain
Domain dealers need to determine the key value for the domain. To successfully put the domain name in Godaddy auction house and get a bidder is not easy. It is because there are hundreds of other domain sellers against them. Dealers want to attract buyers to the website within the shortest time possible and generate profit. To accomplish this, buyers must determine the key value of the domain name to enable it to generate visitors who visit Google and search for names similar to that of the domain. Buyers want a domain build on great keywords that will enable their websites embrace visitors.
Godaddy Auction House Fee
So far, there is no fee charged by Godaddy to buyers other than the one-year renewal fee. The firm facilitates payment transaction of the domain name. Where the domain name sells for an amount below $5,000, Godaddy will process the transaction in-house through Transaction Assurance. With transaction assurance, the buyer pays for the domain to Godaddy auction house. The transaction Assurance then approves the fund within five days. After the verification process, the domain name is shifted from one account to another. Once the account is moved from Godaddy, payment transaction to the seller is initiated by Godaddy. The fund is held by Godaddy for 20 days before being released to the domain name seller. Where the domain name sells for an amount exceeding $5,000, the auction house will process the payment transaction using Escrow.com. Escrow.com emails the buyer and the seller with detailed instructions after the buyers finalize the transaction with Godaddy. Escrow held and approved the funds in an account that bears no interest. The buyer then contacts the seller and shortly after, the seller initiates an accounting change from Godaddy to another account or initiates a domain transfer. The buyer has only 15 days to file a dispute in case he does not receive the domain name. After the buyer notifies Escrow that he has received the domain name, Escrow takes the processing fees and issues the funds to the seller.