The Expired Domain Auctions Arbitrage Loophole

Posted by k | Posted in Uncategorized | Posted on 24-12-2008

Godaddy and Dynadot (there may be others) run a very peculiar expired domain auctions service, which must not, in any case, be weigh against professional drop catchers like Pool or Snap.

Despite the “expired” label, they auction the domains before they actually expire. Domains get listed, domainers bid up their offers, best bid wins, receives a congratulation email and the domain gets pushed to the winner’s account.

What’s astonishing is what comes next: a new email is received saying the previous owner has renewed the domain. Say what?! He has renewed the domain I won?!

Who cares!? I don’t! I get all my domains at reg fee. So should you. Anyway, what’s important to note is that there’s a real Arbitrage Loophole potential in this: there’s a domainer wasting the domain (it let it expire) and a domainer (often several) ready to pay top dollars for it (some sale for the thousands)

Of course registrars are not THAT dumb and protect the whois data. But there are, at least, two ways to find the real owner of the domain:

- Searching on domainers forums for recent sales/appraisals threads on that domain.

- Using the whois history service provided by domaintools.com

So, it’s up to you to connect the remaining dots, but still, I advise you not to offer more than two years reg fee and only for the top auctions, in order not to raise many suspicions and keep yourself below the radar.

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