Would you rather pay more but be guaranteed to get a domain, or pay next to nothing but have an unknown chance of getting it?? I prefer the latter and I’ve gotten tons of domains by being smart.? On GoDaddy auctions if an expired domain auction ends and there are no bidders it takes a few minutes but the domain goes to a fixed price buy it now format.? At this point, whoever jumps on it first gets it for the fixed price of $11 (plus the renewal fee) so around $20 in total.? When I am watching a domain auction and I see no bidders on the auction I wait for the auction to expire.? I do not bid on the domain in the last few minutes because a bid on a domain draws attention to it.? People filter the domains by bids and so by bidding on a domain that previously had no bidders you are putting that domain on the radar screen of tons of people just like you.? I think it is the dumbest thing you can do but plenty of people do it.? Here’s an example from an auction…
Yesterday I was watching an auction on GoDaddy for the domain name PartySchools.com.? With around 2 hours to go there were no bidders.? With an hour to go there were several bidders and the price was around $200.? By the end of the auction someone paid $3,600 for the domain.? Here’s the two scenarios that could have happened:
Scenario 1:? Everyone let’s the domain auction expire with no bids.? In a few minutes the domain returns with an $11 buy it now price tag.? Whoever has the fastest fingers ads the domain to their cart and checks out.? The winner got PartySchools.com for $20.? In this scenario you never know how many people are watching the domain name and waiting for this scenario to happen so they can jump on it.? Normally in this scenario for me I have a 75% success rate of winning the race to the buy it now.? I would guess I’ve saved myself five figures by taking advantage of this scenario.? Yes, I missed out on getting some domains, but that’s acceptable to me because my average cost on the domains I did get is $20 so when I resell them I get a great return.
Scenario 2: In this scenario you place a bid on a domain that had no bidders because either #1 You are stupid? #2 You are afraid that you will lose the race to the buy it now if the auction ends with no bidders or #3 You won’t be near the computer when the auction ends so you need to bid on the domain now.? I think most people who place that first bid fall into #1 because they end up paying a ton more.? In the PartySchools.com example someone paid $3,600 for the domain instead of having a chance to get it for $20.? I would rather have an unknown chance (50% if only 1 other person was after it, 5% if 20 people were after it) of getting the domain for $20 rather than pay $3,600 for it.? I would have gone up to $500 on the domain so I hope whoever bought it has development plans because I think it will be a tough sell to get high four/low five figures which is what the buyer should try to get at a minimum based on their purchase price.
I am never the first bidder on a GoDaddy auction.? Never.? Unless you NEED the domain (no matter what the cost and money is not an object) you should never be the first bidder either.? Work smarter, not harder.