The Benefits of Participating in Domain Auctions: How to Sell Your Domains for Top Dollar

Business, Technology, Internet and network concept. Young businessman working on a virtual screen of the future and sees the inscription: auction

There are several ways to sell domains. This includes direct selling to buyers, which requires a wealth of experience in doing so, using a broker for effective negotiations, or selling via a registrar. But if you want to maximize the value of your domain, you can list your domain for auction. Domain auction is widely used by investors in buying and selling domains for a great deal.

In this article, you will know what a domain auction is, and the process of participating in one. You will also learn about the advantages of utilizing this type of auction for selling your domains, and how to spot a good domain auctioneer. Let’s begin.

What is a domain auction?

Domain auction is a platform where sellers can have their domains sold to the highest bidder within the auction period. Domains listed for auction vary from preregistered to expiring domain names. It allows sellers to list multiple names on the auction site that users can also search for. Domain names in auctions are open for bidding for the site’s registered users. It is also used by domain investors to find high quality domains. A domain auction website is a space that brings together buyers and sellers in the domain name trading business. There are several websites that offer domain auctions. A few of them are GoDaddy Auction, Flippa, and Sedo.

What is the process of a domain auction?

1. Register on your preferred auction site.

As mentioned above, a number of auction sites are available on the Internet. In selecting the right auction platform, it is important to research and review its process and features. Compare them and decide which suits your preference. Later, we will discuss the factors that make a good auction site. These auctions may also vary in their sales commission percentages, averaging from 10-20% of the sale amount.

In registration, you will be asked to fill in important information in the registration like name, contact details, etc. The auctioneer will then verify your identity. Some require a registration fee to be paid to join their auctions.

2. Determine the value of your domain name.

One of the most important steps in making a desirable sale is knowing the value of your domain. If you are new in the business, you will most likely undervalue your domain name. However, most of these auction sites will help you determine the worth of your domain. They have valuation tools that will assist you in pricing your domain name. You may also set a higher price than what it is worth to cover the auction commission fee. By doing this, profit is guaranteed.

3. List your domain for auction.

Listing your domain for auction is simply clicking the “List” button on the auction site. It is when you will specify your desired minimum bid and reserve price for your domain. A reserve price is the least amount that you will set for the winning bid. This is hidden from buyers.

You will also be asked to choose from several options, like the listing type, method of payment, etc. In the listing type, some auctions have the “Buy Now” feature. You may opt to have them in the auction. It is a button that a buyer can click to buy the domain at your accepted price. You will also be asked about the auction period you prefer. This is the number of days you would like the auction to run and the end hour you would like for it to finish.

If your domain contains adult content, you will have to indicate it in your listing as well. Domain description is also a big help in your listing to attract buyers. Make sure you have it in your listing to stir up interest from buyers. In listing your domain, you will also be asked about the method of how you want to receive your payment.

4. Attract potential buyers.

After listing your domain for auction, how do you attract more buyers? You may create landing pages indicating that your domain is listed for sale in the auction. This will help advertise your domain availability and listing.

5. Wait for the sale.

Just like any other auction platform, the user with the highest bid wins. As the seller, you will be notified by the auction site, most of the time via email, that your domain has been sold. Some registrars also have a button you can go to for updates and the status of your listing. As you already chose the mode that you want to receive the payment, you will be instructed by your registrar on the next steps before receiving it.

Domain auctions often use escrow services for sales. This will help ensure the transfer of both payment and domain to seller and buyer respectively. It is recommendable to choose the escrow feature of these auctions.

6. Transfer your domain to the buyer.

Transferring your domain to a buyer is easy when both you and the buyer have the same registrars. Since you both have your information in the same registrar, you will have to simply push the domain to the buyer’s account. However, if the buyer and seller have different registrars, the buyer’s registrar will contact the seller’s registrar for the transfer process to begin.

What are the domain auction benefits?

Quick and easy

Participating in domain auctions makes it easier for you to sell your domain. Most auction sites are embedded with tools for an easy and worthwhile sale. These features may include the valuation tool, the “Buy Now” button, the landing page, and the link to an escrow service.

The “Buy Now” button is a fast way to sell your domain names for your predetermined amount. Given that auctions are held within a specified period only, it provides urgency to all interested parties to bid for a domain. Likewise, domain auctions provide you with a simple way to keep you posted on the status of the sale.

Even if a buyer bids from a different time zone, you can easily check updates on their website. Another stress-free feature is the ease of transferring ownership to your buyer when both of you have the same domain registrar.

Higher value

In view of the fact that there is competition in auctions, your domain will most likely sell at a higher price than what you would usually sell it for to a direct buyer. The valuation tool of these auction sites would also help you assess the right price for your domain. Thus, preventing you from undervaluing your domain when selling it. When selling through domain auctions, there is no limit on how much your domain will be sold. If a buyer bids within the auction period, your domain sale can still go higher.

Multiple buyers

Since registrars conduct most domain auctions, many of which have hundreds or thousands of users, your domain sale is exposed to numerous users across the globe. Most investors are registered on these sites as well, attracting more big buyers to your auction.

Repeat buyers

If you have already made a good sale in an auction, your credibility in this kind of sale will earn you repeat buyers for your domain names. 

What are the qualities of a good domain auction site?

Credibility and trustworthiness

One essential factor to consider in choosing a domain auction site is the credibility and trustworthiness of the website. It should have good site traffic and numerous registered users. You can also check on domain forums to get more information on the experience of users regarding the website. Most importantly, since these auction sites are probably registrars as well, verify that they are ICANN (Internet Corporation for Assigned Names and Numbers) accredited.

Verified users

Domain auction sites should also have verified users/buyers. Make sure that they require registration for bidders to participate in auctions. Not only should they oblige users and bidders to register, but they must also have a verification procedure for these registrations.

Minimum bids

Having a minimum bid for your domain gives bidders an idea of your desired minimum price. It will also give them a clue of how the deal is going to get. If no minimum bid is set, chances are, your domain will be sold for less than its actual value.

Reserve price feature

The reserve price feature will give you a guarantee that your domain will not be sold for less than your expected amount. It is a feature not seen by bidders, wherein you set a “reserve price” for your domain that will not allow it to be sold until that price is met. The domain will not be sold, even to the highest bidder, if the bid is below the reserve price. 

Escrow service

To protect your domain and to secure the payment of the buyer, a good domain auction site should have an integrated escrow service. It holds your domain until payment is confirmed by the escrow, and disburses it to you until the domain ownership transfer has been completed.

Additional notes

You may ask, what happens to unsold domain names in auctions? Ownership of the domains which are not sold in the auction still remains with the seller. If you are the owner, you can choose to hold them or relist them in the future.

It should also be noted that expiring domains cannot be sold in auctions if the expiring date is before the estimated date that the auction-to-transfer processing period is complete.

Once you list your domain for auction, it cannot be canceled. So, you must be sure that you really want to sell your domain.

Another thing to remember is that the information on your WHOIS profile is updated. This verifies your ownership and also gives buyers contact information if they want to reach you.


Participating in domain auctions will help produce higher sales revenues for your domains. It will increase the value of your domain as a result of the competition and sense of urgency in auctions. The global reach of these auctions will also give you exposure to multiple buyers and domain investors, aiding you in building your status among them as well.

Leave a Reply

Your email address will not be published. Required fields are marked *