05|14|2011 05:06 pm EDT
This week Domain Name Wire discussed Godaddy auction domains appearing within the registration path. This change had actually occurred months ago, but since there was no announcement by Godaddy most didn’t notice the change. DNW points out that this change means that you can now list a domain at auction for a lower commission and the name shows for sale when a user searches for that name.
The change also means more than the added exposure and lower commission. It opens up Godaddy’s registration path to all registrants at any registrar. Godaddy auctions allow anyone to auction any domain from any registrar. Previously only Godaddy registered domains (via the Premium Listings channel) would display within the registration path. So for example, a domain name registered at Moniker can be listed for sale through Godaddy’s Auctions and will show up within the registration path.
There are some things to consider. Selling domains through Godaddy’s Auctions have the added benefit of a lower commission (7% vs 30% on Premium Listings), but selling through Auctions requires the seller to handle the transfer process and from our experience may also requires some management of the sale via Escrow.com. Godaddy’s Premium Listings benefit from an instant sale and transfer process which is more “hands-off” for the seller. The Premium Listings also have a much more instant buy process, requiring less of the buyer.
When DNN discussed this new feature offering with Godaddy execs they informed us that this particular channel doesn’t convert as well as Premium Listings. If you consider that the registrant will see the domain for sale in the registration path and that the user must take the steps to register and then bid (or buy it now) this may be the reason for a lower conversion. If you want to sell more names at a steadier rate, Premium Listings with the higher commission is the better way to go and reflects a higher commission. Premium Listings however are only available for Godaddy registered domain names.
For now if you have domains registered outside of Godaddy and want to sell them on Godaddy, listing them with a Buy It Now on the auctions is your best bet. This a welcome new addition to domain sellers looking to have their domains in front of one of the largest sales channels available.
Aftermarket sales within the registration path have been sort of the “Holy Grail” for domain sellers. Think of a customer coming to a site like Godaddy.com typing in “yourdomainnameyouhaveforsale.com” and seeing it available for purchase. That moment that a customer is searching for that domain is the best time to capture that sale. The registrar venue is also likely the best place for that sale to occur as well, since registrars likely have already gained the consumer’s confidence and trust.
We’re pretty excited about Godaddy opening up this channel and hope that other registrars follow suit.