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Domain Registration Articles

Domain Name Auction Explained

Difference between Domain Sale and Domain Name Auctions

Domains are needed and wanted everywhere -- from mom and pop businesses to large successful corporations. Having your own domain is the first step in establishing an existence online. The number of websites out there is growing every single day because buying domain names quite simple and inexpensive.

With an explosion of websites, finding the domain name of choice is becoming increasingly difficult because many of the most sought-after domain names would have been registered by someone or the other. That means, you need to get creative to find domain names that represent your business, are easy to recall, reflect the industry maybe…and are still available! This can be quite a challenge if you are operating in a crowded or competitive industry.

Sometimes, domain names that were registered by others expire for whatever reason. At other times, original registrars of domain names may decide to sell them -- either because they no longer want them, or because they feel they can get a premium price for the domain. In all these scenarios, the domain names would become available for you to get for yourself.

Two of the most common ways of getting a desirable domain name are domain name sales and domain name auctions. This article explains what a domain name auction is, and how it is different from domain name sale.

What is a domain name auction?

A domain name auction make an already registered domain name attainable for people that strategically want a specific domain name. Many domain names are sold to domain auction companies specifically for this purpose. When domain name owners no longer want to utilize their domain name, they are either sold to domain auction sites or to private individuals.

There are a few domain name auction formats domain auction sites use.

  • Public use: Anyone may participate in these domain name auctions
  • Private: You can participate only if you are invited to the domain auction
  • Consignments: The seller of the domain name decides on a minimum amount that they would want for the domain name, the name is not sold till the bids meet or exceed this amount.
  • Open auction: Allows sellers to place their domain name up for bidding and see how much it attracts in attention and value. In open auctions, the seller is not obligated to sell the domain name unless the domain name attracts a bid that is attractive to the seller.

Difference between a domain name auction and a domain sale

The main difference between a domain name auction and a domain sale is the way the price of the domain is determined. In a domain name sale, the seller determines the price that he/she would be willing to sell the domain for. In a domain sale, the first buyer willing to pay the quoted price usually ends up buying the domain. A domain name auction on the other hand lets buyers determine the price that they would be willing to pay for a domain name.

Many web hosting companies buy domain names in bulk at domain auctions to turn around and resell them to other individuals or companies. This adds an extra perk or dimension to their services.

Domain name auction -- for buyers and sellers

Domain name auctions are a great way to just to buy a domain, but also to sell domains at a profit. Sometimes ‘sellers’ auction their domains names to get an idea of the domain name’s market value and not with a serious intention to sell.

If you are looking for that perfect domain name in a competitive market, and if the domain name is not available to register, you should consider checking domain name auctions. Usually, only the high value domain names are offered at domain name auctions.

You may want to start your domain search by checking for domain names of your choice in the domain search box below. Ballistic Domains offers great prices for domain registration, web hosting and more…all in one place!

Ballistic Domains offers cheap web hosting services, cheap domain names and cheap domain name transfers!

Start your domain registration process by searching for your domain name below.

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