Online Reports: GoDaddy Engaging in Domain Name Warehousing

SCOTTSDALE, Ariz. — The GoDaddy domain registrar is taking some expired domain names and monetizing them while offering the domains up for auction, according to online reports.

The practice is called "warehousing" domain names, and it works like this: When a user's domain name expires, GoDaddy takes ownership of the domain and fills the defunct webpage with moneymaking ads and links. At the same time, the domain name itself is shunted into GoDaddy's auction system to be sold off.

None of these practices is illegal or even prohibited by the Internet's chief governing body, ICANN, but online analyst Andrew Allemann of DomainWire.com criticized the practices because of GoDaddy's clandestine approach to them.

When a domain name expires, GoDaddy changes the ownership of the domain to one of its subsidiary companies, Standard Tactics LLC, a company that is located in a different state and whose whois information is private. That's when the ads appear on the expired domain, which then goes up for resale through GoDaddy's domain auction service, The Domain Name Aftermarket (TDNAM).

"It’s clear that GoDaddy has taken a number of steps, including setting up a subsidiary in a different state, to cover its tracks warehousing domain names," Allemann said. "GoDaddy has over 30 million domains registered, and a quick look at TDNAM shows a number of high traffic domains being auctioned off every day. One source said the company receives millions of hits a week on its Standard Tactics domains."

Tech writer Robin Wauters noted that although none of GoDaddy's actions are illegal or prohibited, they could have an anti-consumer effect on the domain-buying marketplace.

"ICANN hasn’t yet adopted specifications or policies prohibiting or restricting warehousing, leaving registrars in a unique position to impact domain name pricing top-down by introducing competitive bidding or auctions for expired domain names," she wrote for TechCrunch.com.

Related:  

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Fanso.io Expands Payment Options With Centrobill Partnership

Payment services provider Centrobill and turnkey subscription platform builder Fanso have partnered to enhance payment options for online marketplace businesses using the Fanso script.

Sara Jay, Dan Leal to Co-Host Heineken Brewery Tour, XBIZ Amsterdam 'Performers' Rights' Panel

Sara Jay and "Porno" Dan Leal will co-host a tour of the historic Heineken brewing factory on Tuesday, Sept. 3 at 1 p.m., during the XBIZ Amsterdam conference.

Vixen, Julmodels to Host 'Club Vixen' Party at XBIZ Amsterdam

Vixen Media Group and premier European talent agency Julmodels will once again team up to host a lavish party at XBIZ Amsterdam: Club Vixen, set to take place the evening of Sept. 4.

Cherie DeVille Lambasts Laila Mickelwait's Anti-Pornhub Book in New Op-Ed

2023 XBIZ Performer of the Year Cherie DeVille has penned a new opinion piece for The Daily Beast, about a new book by religiously motivated anti-Pornhub crusader Laila Mickelwait.

TheArtemiXXX Launches Through YourPaysitePartner

Content creator Artemis Spiegel has launched his new site, TheArtemiXXX.com, through YourPaysitePartner (YPP).

Federal Prosecutors Seek 20-Year Sentences for Remaining Backpage Defendants

Federal prosecutors asked on Monday that the three remaining defendants in the protracted Backpage.com case in Arizona be sentenced to 20 years in prison each.

AI-Powered Chat Service 'Fanalytics' Launches

AI-powered chat service Fanalytics has debuted, aimed at OnlyFans content creators and agencies.

AEBN Publishes Popular Searches by Country for June, July

AEBN has released the popular searches from its straight and gay theaters in more than three dozen countries during June and July.

Sansyl to Host 'All Out' Opening Night Bash at XBIZ Amsterdam

The Sansyl Group, the Dutch parent company of PayBig, has signed on to sponsor the official opening night party of XBIZ Amsterdam.

FSC: California's Porn Age Verification Bill Defeated Over Budget Concerns

The California legislature’s age verification bill, one of numerous AV bills being sponsored around the country by anti-porn activists, will not be moving forward, Free Speech Coalition reported Tuesday.

Show More