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

AI Erotic Storytelling Platform 'AIEroticSmut' Launches

AIEroticSmut.com, a DIY erotic storytelling platform, has officially launched.

TeamSkeet, MYLF to Launch New Website FamilyStrokes.com

Sister studios TeamSkeet and MYLF are launching a new website, FamilyStrokes.com.

AV Bulletin: Age Verification Hits the Mainstream, Ofcom Sets a Date

Industry stakeholders and free speech advocates have anxiously been awaiting the Supreme Court’s decision in Free Speech Coalition v. Paxton, which could significantly impact state age verification laws around the country. In the meantime, state legislatures continue to weigh and pass AV bills, AV tech providers continue to tout their services, and legal challenges continue to play out in the courts — with some cases on hold pending the SCOTUS ruling in Paxton.

Segpay Names Kristi Greer VP of Sales

Segpay has promoted long-time employee Kristi Greer to the position of vice president of sales.

BranditScan Names Subgirl Newest Brand Ambassador

BranditScan has named content creator Subgirl its newest brand ambassador.

Arcom Reports Age Verification Enforcement Actions Against 5 Adult Sites

French media regulator Arcom released a statement Tuesday detailing recent actions to enforce age verification rules as set forth under France’s Security and Regulation of the Digital Space (SREN) law.

Pineapple Support, Clips4Sale to Host Performers' Partners Support Group

Pineapple Support and Clips4Sale are hosting a free online support group for partners and family members of adult industry professionals.

FSC Mourns the Loss of Board Director Emeritus Mark Kernes

Free Speech Coalition has released a statement regarding the passing of Board Director Emeritus Mark Kernes.

Alexa Creed Launches New Paysite

Creator Alexa Creed has launched a new membership site through MyMember.site.

Choice Talent Management Launches Fan Platform 'ChoiceFilmz'

Choice Talent Management CEO Chris Crisco has launched a new fan platform called ChoiceFilmz.

Show More