Go Daddy suspending accounts of those who contact buyers after auction

By: RH

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.

 

Comments

[ernest l. wallace]

In that case that person needs to speak to someone else at GoDaddy and prove ownership. I'm sure it can be resolved.

I personally like the rule of banning those that do this.

[Cloud Domains]

Give one intelligent reason why ernest, this should be good.

[Michael]

Lets see.....
I won SocialCurrent.com for about $800 last week, domain owner "magically renews it" immediately. Im left waiting for refund and wasted 2 hours in a bidding war.
DirtonYou.com, I spend 1 hour bidding and win it for $650, 2 DAYS LATER!!!!!!!!!!!!!!!! I get an email that the owner renewed it.
Getting really sick and tired of this being allowed in order to maximize profit on GD's part. Really sick of it. I hope Im not the only one...

Best regards,
MH

[Paul]

So, contacting the domain holder is a no-no, but auctioning a domain that doesn't even belong to GD yet is OK - wow......

[who]

If the owner renews their domain are they not free to sell it?

[Richard]

Michael how is GD maiximizing profit ? they are losing out.

[Rich]

Big deal...for $4.99 you get another auction account.

[adam]

Those that do this will find a way to manipulate the system to their benefit, just like Godaddy is trying to do. . . cat and mouse game. Why not just give the money to the rightful recipient godaddy ? problemo solved

[jqaces]

I think all you cybersquatting scum bags should be shown the door to the net and take your Pozni scheme called go daddy with you

[Dman]

jq you sound like a real idiot, and learn what the definition of a ponzi scheme you moron.

[Abdu]

I think this is GoDaddy's fault. GoDaddy can simply implement the WHOIS Privacy tactic similar to Dynadot and there won't be an issue for the most part. Of course people can still dig the previous WHOIS info from Domaintools or WHO.IS.

[Aussie Domainer]

Interesting, I have bought a few off there and never had the previous owner renew the name.

[ernest l. wallace]

It's GoDaddy's game.

If you don't like the rules in the TOS, don't play.

[steve]

How can they suspend an account that has domains in it.
They have to let you login to manage domains.
Unless they want to be sued for breach of contract.

[Zap]

Everyone wants to save money in their business.I don't blame someone who is willing to find a back door and save some bucks on a domain name that would normally cost him a lot more.GoDaddy are big and they can do whatever they want but should not forget that costumers made them big and the same costumers can make go bust.

[Black Hat Domainer]

Very, very old trick:

http://www.blackhatdomainer.com/the-expired-domain-auctions-arbitrage-loophole

[Brad Mugford]

@ Steve

"How can they suspend an account that has domains in it."

It is just the GoDaddy Auction account they are suspending, not your actual GoDaddy account.

Brad

[Tom]

Why was Brad not suspended for cloud.us, godaddy has no way of knowing when he started talks, this article sounds non factual.

[Richard]

How can the article be non factual Steven22 posted in a public forum,learn how to read.

[Brad Mugford]

"Why was Brad not suspended for cloud.us, godaddy has no way of knowing when he started talks, this article sounds non factual."

GoDaddy is already aware of the situation.

First of all I never bid on the auction, second of all negotiations started before the auction process even began.

Brad