Why Auctions Exist
Every day roughly 100,000 domains expire because owners forget to renew, go bankrupt or simply abandon projects. Registries give a 30-day grace period, after which names move to auction where investors and end-users bid for previously registered digital real estate.
Major Auction Platforms
- GoDaddy Auctions – biggest inventory, $5 annual membership, ends in 7-day public bidding.
- NameJet – partners with registrars to capture pre-releases, strong in .net and .org.
- Sedo – global marketplace with fixed-price and negotiation options, great for international buyers.
- DropCatch – specializes in last-second snap catches, hundreds of registrars bidding simultaneously.
Before You Bid
Research comparable sales on NameBio or DNJournal to set a ceiling. Check archive.org for prior content—spam history can incur Google penalties. Pull Moz DA, Ahrefs DR and backlink profile; a clean 10-year-old name with educational backlinks can be worth more than a fresh registration.
Valuation Metrics
- TLD – .com still commands 3-5× the price of new gTLDs.
- Length – 3-letter .com liquid at $20k+, 4-letter at $200+.
- Pronounceability – CVCV pattern (e.g., milo.com) sells faster.
- Search volume – exact-match keyword with 10k+ monthly searches adds ROI potential.
Bidding Strategy
Set your absolute max 24 hours before close to avoid emotion-bidding. Use proxy bids so the system only increments to outbid competitors. Watch for last-minute sniping; many platforms extend the clock by 5 minutes if a bid arrives in the final moments.
After You Win
Pay within 48 hours or you risk account suspension. Most registrars move the domain into your account within 7-10 days. Immediately enable privacy, lock, and 2FA. If you plan to flip, list it on the same marketplaces with a realistic markup (typically 2-4× wholesale).
Hidden Costs
Winning bid is not the only cost: add 15-20% buyer’s premium, 6-10% VAT depending on jurisdiction, and renewal fee that may be due immediately if the name is within 45 days of expiry. Budget accordingly so a $1,000 bargain doesn’t become a $1,400 surprise.
Risks & How to Mitigate Them
- Trademark dispute – run USPTO and WIPO checks before bidding.
- Google ban – search “site:domain.com” to verify indexed pages; blank result may mean de-indexing.
- Payment fraud – use escrow services for deals above $5,000.
Pro Tips for Long-Term Profit
Focus on niches you understand—if you sell dental supplies, you’ll know which two-word dental names have end-user demand. Build mini-sites on acquired domains to generate traffic revenue while you wait for the perfect buyer; a $50/month Adsense stream turns idle inventory into cash-flowing assets.