This topic seems to be getting more and more talked about.
The drill goes like this:
Worthwhiledomain is on auction at Go Daddy, it closes say at $4000.
Now technically the registrant still has time to renew, paying the renewal plus $80. At Go Daddy they can even transfer the domain out and not pay the $80 up til day 42 after expiration.
Savvy domain investors check the whois of Worthwhiledomain and offer the registrant money for the domain. Sometimes the registrant is aware of the auction and had all intentions of renewing, they just wanted an $80 real time appraisal.
Other times the registrant does not know about the auction, the domain investor says "I will buy the worthwhiledomain from you and include the renewal in the price of acquisition. The domain investor may have to walk a less savvy registrant through the whole renewal process and the push.
This past week we wrote about how Cloud.us sold for $8505 on Go Daddy Auctions, the domain was renewed and sold to Brad Mugford from DataCube.com. Brad did start the process to buy the domain before the auction. There were several other deals done this week too.
Thursday night someone called me and told me a friend got their account suspended. Namepros member Steven22 posted on Namepros that he got his account suspended. Here is his post:
"I just got called from my Godaddy rep and those idiots are suspending my GD auctions account because they think I had contacted the previous owner and bought the names directly from them.
In my case, it isn't even true but they didn't care. I explained that I was a partial owner in the names to begin with and they refused and closed the account."
Now of course many want to know how Go Daddy can do this ? They set the rules and now others are finding ways to play the game to their advantage by the rules Go Daddy set out.