How to Discover Proxy Bid “Sweet Spot” and Win More GoDaddy Auctions
I share and discuss how to use GoDaddy Aftermarket data to determine a proxy bid amount likely to win more GoDaddy expired domain auctions.
Over the last 18 months and counting, I’ve noticed an uptick in the number of bidders participating in GoDaddy expired auctions. Between auction bots and increased bidder count, closing auction prices for expired domains skyrocket to unbelievable values.
While I’ve not researched data to back this next statement up, I’m guessing GoDaddy’s addition of the estimated value — based on their GoDaddy Domain Appraisal Tool — is likely the culprit to increased activity and inflated closing auction prices.
For instance, expired domain auctions that would have normally closed at or below $50 are now closing anywhere between $300 – $600.
I don’t know about you, but such pricing influx can wreak havoc on a quick-flip domain strategy, especially when considering the average domain hold time is over 400 days or so to flip.
Most domain investors, like myself, don’t sit around waiting and watching expired domain auctions with the ole’ eagle eye. I typically set a proxy bid amount, walk away and hope for the best.
Unfortunately, this once successful strategy’s pricing no longer gets the job done with the exponential swing in closing auction prices.
To gain better understanding as to how much I would need to adjust my proxy bid strategy to hopefully start winning more GoDaddy expired domain auctions, I decided to dive into the details of expired auctions with bids I’ve lost dating back to the beginning of the year.
Fortunately, GoDaddy provides downloadable copy of the results in a css file. Using this file, I created the following histogram to help determine what my new proxy bid dollar amount could be.
Year to date, I’ve bid on and lost 311 expired domain auctions with prices ranging from a minimum of $15 to a maximum of $5,329, median of $130 and averaging $273. The same bids had an average of 21 bids casted, median of 13 bids, having 2 bids as a minimum and 176 bids casted as a maximum.
Dating back to 3 years ago, I often set my proxy bid to $50 and won most domains without having to actively bid once my initial proxy bid was exceeded.
If I desired to win the 234 domains I lost at or below $250, then I likely should have placed a $200-$251 proxy bid. Now, what this doesn’t account for are other domain investors placing the same or higher proxy bids.
Best guess says that I would have likely won all 234 expired domain auctions by simply placing a $350 proxy bid although quite challenging to prove this point after the fact, not knowing if winning bidder had placed a proxy bid of greater value.
But based on the data, below are a few domains I would have likely won by setting a $350 proxy bid:
I’ve chosen to use my year-to-date data of lost expired domain auctions to determine my new proxy bid dollar amount Domain investors actively bidding using GoDaddy’s aftermarket platform could also use this approach while tightening the timeline to days, weeks, or month establish a strategy of their own.
Of course, a deeper dive statistically could prove quite beneficial in arriving at the precise auction proxy bid amount — although varying external factors could alter this amount.