Domain name auctions can be extremely useful opportunities to buy and sell domain names. The auctions can occur on general auction sites, like eBay, or on domain-orientated sites like Sedo or Moniker.com. There are also occasional live domain name auctions.

Information for Sellers

There are various domain auction formats. Some auctions are open to the public, whilst only invited parties can participate in private auctions. Some auctions have a reserve price – this is called a consignment auction – which must be met before the auction can begin. Open auctions are also available on many sites; these are not time-limited, so they can prove a useful way to gauge the value of your domain. You are under no obligation to sell, but you can do so if a good offer comes your way. The competitiveness that often grows between bidders can drive up the value of your domain name.

If you have several Domain Names to sell, domain auction sites or live auctions can be a great way to list and manage all your domains together. Whereas parking a domain relies on potential buyers stumbling across the page, listing your domains on auction sites is a far more active sales strategy and could result in a speedier outcome.

Information for Buyers

Buying domains at auction can be a wise move for someone interested in purchasing a domain name, because one-to-one sales sometimes offer highly inflated prices. It can be hard to tell what a domain is really worth if you are unable to see the offers of others. At a domain auction, it's possible to get an idea of how valuable a domain name is by how much competition there is to secure it.

Make sure, when you are using auction sites to buy domain names, that an escrow agent is being used to facilitate a safe and reliable transfer of the domain name and your money.

By Iain Ford