Here come the $50 closeouts

GoDaddy Auction closeouts now start at $50.

It’s February, and that means GoDaddy has changed the pricing for closeout domain name auctions.

Expired domain names that don’t receive bids move to closeouts, where a Dutch auction begins. Previously, these auctions began at $11 and dropped by $1 a day until they hit $5.

Now, auctions begin at $50, then $40, $30, $11, and $5. Buyers also pay the domain renewal fee.

The fresh pricing ought to better capture the value of domains, as many buyers avoid bidding in the regular auctions since it attracts the attention of other bidders. In theory, it could also give those without API access and development resources a better chance of getting domains if bulk buyers wait until the price drops.

But that might not happen. On our Reglike Live Clubhouse chat yesterday, Shane Cultra stated he doesn’t think it will change behavior. He thinks the same people who buy at $11 will now buy at $50.

Only time will tell.