Godaddy: Tell Us How to Improve Signature Auctions
Godaddy is asking its customers to provide feedback on how the company can improve its Signature Auctions, after the first round saw pretty poor results. This request is one of the smartest moves I’ve seen from one of the big domain companies. Most companies would probably have tried to put a positive spin on the results, which may have made them look foolish. Because of their humble appeal, I will give some advice that I believe could improve their next Signature Auction.
1.) Better Names at Reasonable Reserves
Godaddy should do what it takes to ensure there are good quality domain names on auction with low/reasonable reserve prices. They should seek out domain owners and cut deals with them to guarantee certain prices will be achieved (lower commissions, sales price guarantees, bid on behalf of Godaddy’s internal portfolio…etc). The better the quality names at reasonable reserves, the more likely it is for buyers to show up and bid. Conversely, the more wealthy buyers that are present, the more likely it is for domain sellers to list their names at reasonable reserve prices.
Sellers are reluctant to put their names on auction at a lower reserve because if there aren’t enough buyers, they’ve created an artificial price ceiling for their domain names. Hypothetically, a $500,000 name with a reserve price of just $100,000 might not sell if an interested buyer doesn’t show up. If that’s the case, the domain owner has created a price ceiling that isn’t realistic because it probably would have sold for $500,000 in a different venue.
2.) More Publicity
In the days leading up to the auction, there didn’t seem to be any publicity for the auction. It was almost like Godaddy wanted to have a soft opening, but when they chose that route, bidders didn’t show up (or if they did, they didn’t bid). Godaddy needs to publicize their next auction as much as possible. I suggest the following:
- Purchase impressions in all the domain forums and domain blogs
- Buy related Adwords
- Email entire database of current customers
- Ask Bob to blog about the auction to generate buzz
- Issue press releases touting the high profile domain names
- Give coupon credits to VIP customers
3.) VIP Invitations
There are quite a few people who are known for bidding aggressively at other live domain auctions. Senior Godaddy executives should go through their rolodexes and do what they need to make sure these bidders show up. Godaddy might even want to ask them what types of names they are looking to purchase, and they should make sure at least some of these types of names are on auction.
4.) Manage the Escrow Process
Instead of handing off the sale to Escrow.com to complete an auction (or any of TDNAM’s sales for that matter), Godaddy should handle the transaction on their own. This is an important part of the process, and it will ensure that payment is made quickly, and the domain name is transferred promptly and correctly. Why should they leave anything to chance? All other major auction houses offer in-house escrow services, and I don’t see why Godaddy still doesn’t.
The better the auction results are, the more likely it will be that people will want their names listed in future auctions. The better the names in auction, the more likely it will be that buyers show up and bid. The second round will be much more successful than the inaugural attempt because Godaddy was smart enough to ask for advice from the domain community.
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