Domain name aftermarket, will auction off expired domains — GoDaddy launches

In a move that might send ripples through the domain name aftermarket, GoDaddy has launched a domain name aftermarket for reselling domain names. The biggest news is that it appears GoDaddy is auctioning off its expiring domains through the service, thereby preventing rival drop services from snagging their domains!

The service is sure to undercut rivals on commissions and fees:
-$4.95 annual membership
-7.5% commission with only a $10 minimum
-No buyer fees

Still, the exchange does charge a listing fee of $1.95 for 3 months. Most other aftermarkets don’t charge a listing fee. There’s also a $.95 fee for offering a “Buy Now” price rather than an auction.

GoDaddy appears to be auctioning off its expiring domains with the service starting at $25. This basically means GoDaddy will become its own exclusive drop manager, and you will no longer be able to get dropping domains through Pool, SnapNames, etc. This is similar to SnapNames agreement with Network Solutions and BulkRegister.

Interestingly, the service is not right now integrated with GoDaddy’s registration service. If you type in a domain on the aftermarket into the GoDaddy registration box, it does not give you the option to buy it through the aftermarket. I suspect this feature will be added soon.

What are you thoughts? This certainly has widespread implications for the domain name aftermarket.