Aftermarket domain names are domains that are currently registered and listed for sale by the registrant at a secondary domain name marketplace. People come together from all over the world to buy and sell domain names on a variety of competing secondary market platforms, each one offering thousands of aftermarket domains for sale everyday of the year.
Secondary markets for domains operate entirely on the law of supply and demand. Rare domains garner a large amount of interest resulting in very high prices. Common, ordinary domains get little attention and result in much lower prices. Sometimes you can find great deals on domain names in the aftermarket, but it depends on how much competition there is to purchase the domain and the platform you are using.
Three Types of Secondary Domain Name Market Platforms
There are basically three types of secondary domain name market platforms to choose from. These are the auction houses, retail domain name marketplaces and domain name backorder services. Each platform is different and each offers its own distinct features and benefits for buyers looking to purchase valuable domain names.
In the domain auctions, you are competing against others to buy a domain name. Often, hundreds of bidders are watching and bidding on the rarest domains. Seven days a week, there are people from all over the world participating in the auctions – students, speculators, business owners, even professional domain investors.
The auction houses list domains that have recently expired and are being sold to the highest bidder. Auction houses offer some of the best deals on aftermarket domains and the action is fast and furious.
Expired domains are initially listed in 10 day to 30 day auctions depending on which auction house you visit. Chances are, if there is a domain name you are looking for, you’ll find it at the auction houses. They have an excellent, rotating inventory.
At the retail marketplaces, domains are offered for sale at Buy It Now, or BIN, pricing. You can also make an offer to buy a domain name here, too. When making an offer for a domain, you will most likely be dealing with a domain broker even though the bulk of the domain names listed are owned by individual investors. Prices are usually the highest at the retail domain name marketplaces because of the commissions, but sometimes you can find pretty good deals.
If you are watching a domain and waiting for it to expire or drop, you might want to use a domain backorder service. The split second a valuable domain name expires, backorder servers or drop catchers ping the registry thousands of times to try and register the domain before anyone else can grab it.
It costs nothing to backorder domains at a drop catching service, you pay only when they catch the domain for you. If there are no other backorders, you win the domain. If there are multiple backorders, the domain is then auctioned off to the highest bidder.
To join any of the secondary marketplaces, all you do is sign up for the service with your name and email address. That’s all they need from you, until you get ready to purchase a domain. When you’re ready to buy domain names, you’ll fill in all your personal information and then enter your credit card details for purchases. For large domain purchases and when selling domains, you may be asked by some of the marketplaces for proof of identity.
Aftermarket Auction Houses
The most popular secondary marketplaces for aftermarket domain names are the auction houses. When bidding on domains at auction houses, you are competing against other bidders to buy the domain name. Often, there are thousands of bidders watching and bidding on domains twenty four hours a day.
Premium, generic domains get hundreds of bids and often sell for six, maybe seven figures. Other times, there may be only one bidder on a domain, but that domain could be the perfect name for a multi-billion dollar corporation.
Everyday of the week, there are people from all over the world bidding – students, speculators, business owners, even professional domain investors. There are quite a few auction houses, but the most popular are GoDaddy Expired Auctions, GoDaddy Closeouts and NameJet.
GoDaddy Expired Domains
GoDaddy is by far the largest domain name registrar in the world. They currently have over 18 million customers and nearly 60 million domain names under management, including over 46 million .com domains – that’s one third of the total .com registrations.
As a comparison, the next largest registrar has less than 10 million domain names under management. Every day, the expired inventory at GoDaddy Auctions is replenished with thousands of fresh domains – you can find a true diamond in the rough here.
When a domain name expires at GoDaddy, it’s listed in the Expired Auctions on the 25th day after expiration. Interested parties have the opportunity to bid on the expired domain name for 10 days. The bidders and bid amounts are listed on the individual auction pages for each Expired Auction domain.
So you know exactly where you stand against the other bidders. In addition to their own domains, GoDaddy offers expired domain inventory from Tucows, Wild West, FastDomain and many other smaller registrars.
At the close of the 10 day auction, the highest bidder wins. If there are no bidders in the Expired Auction, the domain name is sent to GoDaddy Closeouts. At that time, you can get the Closeout domain at BIN for $12, plus the renewal fee.
GoDaddy Closeouts are reverse auctions and the price decreases by $1 each day and lasts for 5 days. If no one buys the domain, it then completes it’s life cycle, is deleted and goes back to the registry.
NameJet Aftermarket Domain Name Service
NameJet is an aftermarket domain auction house specializing in pre-release (exclusive expired domains), direct listed (private sellers) and pending delete (all expiring domains) domains. NameJet offers exclusive access to pre-release expired domains from ten registrars including Enom and Network Solutions, the first .com domain name registrar.
Pre-release expired domains from NetSol are some of the oldest and most valuable domains you’ll find at auction. I’ve gotten some very good deals on valuable domain names at NameJet!
Pre-release domain names listed at NameJet begin with a 30 day auction. Place your backorder at any time leading up to the close of the auction. After 30 days, the domain moves to a private auction. Each person placing a backorder then competes in a private three day auction for the domain.
If you are the only bidder, you win the domain. The auction process works essentially the same for direct listed domains at NameJet, but at the close of the 30 days, there could be a public or private three day auction depending on the seller’s preference.
At NameJet, you can also place a backorder on any domain name, at any time. NameJet employs their proprietary dropcatching software to try and catch the domain the instant it drops. Initially, there is no cost for backorders at NameJet, you only pay if they catch the domain for you.
If NameJet catches the domain and you’re the only backorder, the domain is yours. More than one backorder on the domain triggers a three day auction. When I see a valuable domain about to expire, I make sure to place a backorder at all the dropcatchers, including NameJet, just to cover all my bases.
Retail Domain Name Marketplaces
The domain name marketplaces offer domain names for sale at Buy It Now and at Make Offer pricing. The BIN prices are usually set fairly high and these guys really focus on sales to end users. You are encouraged to make an offer for any domain and you will be contacted by a broker to gauge your interest and negotiate a price.
Afternic lists more than five million domain names at a time in their marketplace. Every month, there are more than 75 million searches for domain names at Afternic, making it the most searched domain name marketplace on the planet. Afternic is owned by GoDaddy, so your purchases are guaranteed by the world’s largest registrar.
The Sedo Marketplace currently offers over 18 million domain names for sale on their platform. In fact, it’s the world’s largest marketplace platform for internet addresses. There is a very high probability that the domain name you are looking for is listed in the Sedo Marketplace.
Huge Domains is a leading source of premium domain names for business and industry. They currently have an inventory of over 350,000 domain names, making Huge Domains one of the largest portfolio holders of domain names on the planet. They offer reasonable prices on domains and as a bonus you won’t get anywhere else, convenient payment plans for all purchases.
Domain Name Backorder Services
Each day somewhere in the neighborhood of 60,000 to 85,000 domain names expire or drop. This happens when the registrant fails to pay for or renew the domain name. Dotcom domain names begin dropping in alphabetical order at 2:00PM Eastern every day of the week and continue to drop over the course of the next 45 minutes.
Grabbing expiring domain names has become a very competitive business. If you are watching an expiring domain waiting for it to expire, chances are someone somewhere is watching also. It’s best to pay a drop catching service to get the domain for you.
Dropcatchers use advanced computer algorithms that detect the precise millisecond a domain drops. They then issue hundreds of purchase orders to the registry at once making dropcatchers virtually impossible to beat.
If you are looking to purchase a domain name that is expiring, then look no further than DropCatch.com. They are the industry leader and have spent millions on infrastructure and advanced hardware and software applications.
NameJet and Snapnames
NameJet and Snapnames are owned by the same company and offer backorder services on expiring domain names. While they don’t catch backordered domain names at the rate Drop Catch does, their service still surprises us and they occasionally grab a great domain. It’s best to put in backorders at all three dropcatching services.
Prices for backorders of domain names run about $70 at all three dropcatchers. The best part is that you do not pay anything unless they catch the domain for you.
I hope that helps you understand aftermarket domain names and the three types of secondary domain name marketplaces. If you have any questions about the beer industry, branding and domain names, feel free to contact Beer Distro anytime.