Online Reports: GoDaddy Engaging in Domain Name Warehousing

SCOTTSDALE, Ariz. — The GoDaddy domain registrar is taking some expired domain names and monetizing them while offering the domains up for auction, according to online reports.

The practice is called "warehousing" domain names, and it works like this: When a user's domain name expires, GoDaddy takes ownership of the domain and fills the defunct webpage with moneymaking ads and links. At the same time, the domain name itself is shunted into GoDaddy's auction system to be sold off.

None of these practices is illegal or even prohibited by the Internet's chief governing body, ICANN, but online analyst Andrew Allemann of DomainWire.com criticized the practices because of GoDaddy's clandestine approach to them.

When a domain name expires, GoDaddy changes the ownership of the domain to one of its subsidiary companies, Standard Tactics LLC, a company that is located in a different state and whose whois information is private. That's when the ads appear on the expired domain, which then goes up for resale through GoDaddy's domain auction service, The Domain Name Aftermarket (TDNAM).

"It’s clear that GoDaddy has taken a number of steps, including setting up a subsidiary in a different state, to cover its tracks warehousing domain names," Allemann said. "GoDaddy has over 30 million domains registered, and a quick look at TDNAM shows a number of high traffic domains being auctioned off every day. One source said the company receives millions of hits a week on its Standard Tactics domains."

Tech writer Robin Wauters noted that although none of GoDaddy's actions are illegal or prohibited, they could have an anti-consumer effect on the domain-buying marketplace.

"ICANN hasn’t yet adopted specifications or policies prohibiting or restricting warehousing, leaving registrars in a unique position to impact domain name pricing top-down by introducing competitive bidding or auctions for expired domain names," she wrote for TechCrunch.com.

Related:  

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Flirt4Free Wins Trademark Infringement Case Against Copycat Website

The World Intellectual Property Organization (WIPO) has ruled in favor of Flirt4Free in a case against a copycat website using an infringing domain.

Irish PM Affirms Plan for UK-Style Ban on 'Extreme' Content

Ireland’s prime minister on Wednesday confirmed that his government is moving ahead with plans to introduce legislation criminalizing possession and distribution of “extreme” pornography, which he hopes to see passed by early 2027.

UK Parliamentary Group Calls for Outlawing Cam Platforms

The U.K. Parliament’s All-Party Parliamentary Group (APPG) on Commercial Sexual Exploitation has published a report in which it calls for banning adult livestreaming platforms.

Ofcom Escalates Sun Social, Superb Convert Investigations

U.K. media regulator Ofcom has ramped up its ongoing Online Safety Act (OSA) compliance investigations into PlayVids/PeekVids operator Sun Social Media and PimpBunny operator Superb Convert.

Centrobill Rolls Out Apple Pay, Google Pay Options

Centrobill has added Apple Pay and Google Pay options for merchants.

Judge Preliminarily Approves Pornhub Class Action Settlement

A U.S. District Court judge on Monday granted preliminary approval to a settlement between Aylo and the plaintiffs in two class-action lawsuits over allegations that former Pornhub parent company MindGeek knowingly allowed and profited from CSAM on its sites.

Roald Riepen Steps Down as CEO of IMC

Roald Riepen, CEO of International Media Company (IMC), is stepping down.

Ofcom Sets Timeline for Enforcing 'Extreme' Content Rules

Before U.K. media regulator Ofcom begins enforcing new laws criminalizing certain “extreme” adult content online, it will first hold a consultation in early 2027, and then provide updated guidance for sites and platforms.

FSC Publishes Guidance on New UK Pornography Laws

The Free Speech Coalition (FSC) has published information for its members on the United Kingdom's recently passed pornography laws, which take effect next week.

Brazil Issues Guide to Digital Safety Compliance

Brazil’s National Data Protection Agency (ANPD) published on Wednesday a new guide outlining online providers’ child-protection responsibilities under the Digital Statute for Children and Adolescents (Digital ECA), which requires adult websites to age-verify users located in Brazil.

Show More