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 © 2025 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

Florida AG Sues EU-Based Adult Companies for Failing to Age-Verify Users

Florida Attorney General James Uthmeier filed a lawsuit Monday with the 12th Judicial Circuit Court of Florida against five EU-based adult companies for allegedly failing to require age verification before allowing access to adult content.

SkyPrivate Launches 'Telegram Pay-Per-Minute' Feature

SkyPrivate has launched a new pay-per-minute (PPM) private show option on Telegram.

Pineapple Support to Host 'Money and Mental Health' Online Event

Pineapple Support is hosting a free, online event to help performers balance financial wellbeing with mental health, Aug. 18-19.

Arcom Warns 5 Adult Sites Over Age Verification

French media regulator Arcom has sent enforcement notices to the operators of five adult websites that the agency says have failed to implement age verification as required under France’s Security and Regulation of the Digital Space (SREN) law.

MojoHost Debuts NVIDIA Blackwell-Powered Hosting

MojoHost has announced the launch of NVIDIA Blackwell-powered hosting featuring RTX 6000 Pro MaxQ GPUs.

FSC: Identity Theft Targeting Adult Performers

The Free Speech Coalition has put out an alert warning of an individual found to be targeting adult performers for identity theft.

Assylum.com Implements New Age Verification System

Assylum.com has introduced an age verification system across its member sites.

European Commission to Assess Pornhub, XVideos, XNXX Compliance With Digital Services Act

The European Commission plans to conduct a study to determine how well adult sites Pornhub, XVideos and XNXX are addressing illegal content and other potential harms under the EU’s Digital Services Act.

German Higher Court Upholds Ban on PornHub, YouPorn

The Higher Administrative Court of Rhineland-Palatinate on Thursday upheld a “network ban” on Aylo-owned adult sites Pornhub and YouPorn for failing to comply with German age verification regulations.

Alabama Notifying Adult Sites of New Tax Set to Take Effect Sept. 1

The Alabama Department of Revenue has begun sending notices to adult site operators about a new 10% tax on their revenues, set to be enforced starting Sept. 1.

Show More