How to Sell a Domain on GoDaddy?

Follow these proven steps to successfully list and sell your domain from India on the world's largest domain marketplace.

Step 1: Choose Your Domain Selling Strategy

Select the strategy that best fits your portfolio, risk tolerance, and goals as an Indian investor.

1. Expired Domain Flipping

Buy recently expired domains at a low cost (often under Rs. 1,000) and resell them for a profit. This involves using GoDaddy's Expired Domain Auctions to find valuable names that owners forgot to renew. This model is ideal for those who can quickly spot undervalued assets.

2. Hand-Registered Domains

You can manually register domain names directly through a registrar (like GoDaddy, Namecheap) at a low cost, often under Rs. 1,000. Focus on short, brandable, and keyword-rich domains related to trending industries (e.g., fintech, edtech, e-commerce) for potential resale. This approach is an affordable way to build a valuable domain portfolio.

3. Premium Domain Investing

Acquire and hold high-value domains -short, memorable, keyword-rich, or brandable, to sell them for a significant profit. Think of names relevant to India's booming sectors like fintech, edtech, or e-commerce. This model has higher profit potential but requires more investment and patience.

4. Portfolio Liquidation

If you've collected several domains over the years, you can sell them individually or as a package. You'll need to evaluate each name to decide the best sales channel—an auction, a fixed-price 'Buy It Now' listing, or a direct sale to another investor.

Step 2: Research and Value Your Domain Name

Accurately valuing your domain is critical. Overpricing scares away buyers, while underpricing means leaving money on the table.

a. Valuation Tools:

• GoDaddy Domain Value Appraisal: A free, AI-driven tool that gives an estimated value based on comparable domain sales, keywords, and TLD (Top-Level Domain). It's a great starting point.
• Estibot: A popular third-party tool providing detailed valuation reports.
• NameBio / DnJournal: Research historical sales data for domains with similar keywords, length, and TLD to establish a realistic price. Check for sales of ".in" domains to get India-specific data.

Disclaimer: Valuations are estimates and may not reflect actual market value. Always do further research and consult experts before buying or selling domains.

b. Valuation Criteria for the Indian Market:

• Top-Level Domain (TLD): ".com" has global appeal and is highly valued. ‘.in"’ and ‘.co".in"’ are excellent for targeting the Indian market specifically and can build local trust.
• Keywords: Domains with high-value keywords relevant to Indian audiences (e.g., LoanIndia, OnlineKirana) or brandable "Hinglish" names can be very valuable.
• Brandability: Select a name that is catchy, easy to spell, and remember for an Indian audience.
• Comparable Sales: What have similar ‘.com’ or ‘.in' domains sold for recently?

Step 3: Understand Ownership and Legal Considerations

Before you list, ensure your domain is legally clear for sale, especially in the context of Indian business.

• Check for Trademarks: Selling a domain that infringes on a registered trademark is illegal. Use the Indian Trade Marks Registry portal to check for potential conflicts with both Indian and international brands.
• GST Threshold: Under Indian GST law, selling a domain is considered a "supply of services". You are required to register for GST if your aggregate turnover is Rs. 20 lakhs per financial year.
• Foreign Inward Remittance Certificate (FIRC): You need this certificate to confirm receipt of international payments in India, required for compliance with foreign exchange regulations.

Individual Sale vs. Full-Time Business: Legal & Tax Obligations

In India, legal and tax rules for selling a domain depend on whether it's a casual sale or a regular business. This distinction is crucial.

Scenario 1: You are an Individual Making an Occasional Sale

If you sell a few domains you own and it's not your profession, it’s treated as a personal transaction.

• No Business Registration Needed: You do not need to register any business entity. You are an individual selling a digital asset.
• GST: Not required if your total annual income from services is not above Rs. 20 lakhs. Even if GST isn't needed, income tax may apply, with occasional domain sales subject to capital gains tax or other provisions. So, you may need GST registration depending on your sales frequency and income.

Scenario 2: You are Running a Full-Time Domain Trading Business

If domain trading is your profession, you are running a business and must comply with commercial laws.

• Business Registration is Essential: You must operate as a legal entity. For individuals starting, the simplest choice is a Sole Proprietorship , established by getting other key registrations.
• Mandatory GST Registration: You must obtain a GSTIN. This is needed to issue invoices, claim tax credits, and operate professionally. You will charge GST on sales.
• Separate Business Bank Account: All business transactions must go through a dedicated Business Current Account, not your account.

Step 4: Create Your GoDaddy Auction Listing

Once your domain is ready, creating a listing is a straightforward process.

a. Open an Account on GoDaddy:

1. Log in to your GoDaddy account.
2. Go to the GoDaddy Auctions section from the menu.
3. You'll need to join GoDaddy Auctions. This requires an annual membership, which costs around USD 5 (approximately Rs. 400- Rs. 450).
4. Click "Sell a Domain" and follow the on-screen instructions to list your domain.

Note: GoDaddy charges an annual, recurring, and non-refundable fee for the membership, so ensure you're committed to using their platform before registering.

b. Listing Types:

• 7-Day Public Auction: A classic auction where the highest bidder wins. Excellent for creating bidding wars and urgency.
• Offer/Counter-Offer: Let buyers submit private offers. You can accept, reject, or negotiate.
• Buy It Now (BIN): A fixed-price listing. Best for premium domains when you have a specific sale price in mind.

Step 5: Prepare Your Domain for a Smooth Transfer

A smooth handover process is key to getting good seller feedback.

a. Unlock Your Domain

• What it is: A safety lock. GoDaddy keeps it "locked" so no one can steal your domain.
• Why do it: You must turn the lock “OFF” to allow the sale. If it's locked, the transfer will fail.

b. Get the Secret Code (Authorization Code)

• What it is: A secret password for your domain.
• Where to find it: You get this code from your GoDaddy account. Go into your domain's settings and look for an option like "Transfer domain away from GoDaddy" or "Transfer to another registrar".
• When do you need to:
  • If your buyer uses a different company (like Google or Namecheap), you must give them this secret code. It proves to their company that you are the real owner and that you approve the sale.
  • If your buyer also uses GoDaddy, you do not need this code. You just push it to their account. It's a much easier, internal transfer.

c. Turn Off Privacy

• What it is: A service that hides your name and email from the public.
• Why do it: For the transfer to work, the system needs to send a confirmation message to your real email address. If your email is hidden by the privacy service, you won't get the message, and the sale will get stuck.

Step 6: Create a Compelling Auction Listing

Your listing is your sales pitch to the world.

• Set a Realistic Starting Bid: A low starting bid (e.g., $20 or ~Rs. 1,600) can attract more watchers and initial bidders, building momentum.
• Use a Reserve Price (Optional): If you won't sell below a certain price, set a reserve. Note that GoDaddy charges a small fee for this. Your reserve is hidden from bidders.
• Write a Good Description:

• • Highlight its strengths: Is it brandable, short, aged, or good for SEO (Search Engine Optimization)?
  • Mention potential uses relevant to India: "Perfect for an Indian travel blog," "Great brand for a fintech startup in Mumbai."
  • If the domain is ‘.in’,: emphasize its value for targeting the Indian market.
  • Include existing traffic or revenue: If the domain has existing traffic, backlinks, or revenue, mention these in the description to significantly boost its appeal.

Step 7: Understand GoDaddy Fees and Pricing Strategy

Factor GoDaddy's commission into your pricing to ensure you make a profit.

a. GoDaddy Auction Fee Structure:

• Commission Fee: GoDaddy's commission is a percentage of the final sale price. The minimum fee is USD 15 (around Rs. 1,250). Note: Fees are charged in USD, so be mindful of currency conversion rates.
• Membership Fee: The annual fee of around $USD 5 (~Rs. 400-Rs. 450).
• Optional Fees: Extra charges for advanced options like setting a reserve price.

b. Pricing Strategy:

• Calculate Your Break-Even Point: Your cost (domain purchase + renewals) + GoDaddy commission.
• Analyze Comps: Base your reserve and "Buy It Now" price on what similar domains have sold for, looking at both global and Indian sales data.
• Set Price in USD: Remember that all listings on GoDaddy Auctions are in USD. Set your price accordingly.

Step 8: Marketing Your Domain Auction

While GoDaddy provides an audience, extra promotion can boost your sale price.

• Indian Social Media Groups: Share your listing in Indian startup, entrepreneur, and digital marketing groups on Facebook and LinkedIn.
• Domain Forums: Use international forums like NamePros and local tech forums to announce your auction.
• Direct Outreach: If your domain is a perfect fit for a specific Indian company, a polite email informing them of the auction could lead to a sale.
• Run Hyper-Targeted Ads: Use LinkedIn or Meta to target specific job titles ('Founder') and industries ('FinTech') in Indian tech hubs, ensuring your ad is seen by the right people.
• Engage with Niche Creators: Connect with creators on X (Twitter) and LinkedIn who serve the Indian startup community. A single mention from a trusted voice can bring serious bidders to your auction.

To master how to sell on GoDaddy Auctions from India, you need to understand the local market.

1. Understand Indian Buyer Psychology

Indian startups and businesses often look for domains that are not only brandable but also convey trust and relevance to the local market. Simple, easy-to-spell names often perform better than complex or abstract ones.

2. Choosing the Right TLD (Top Level Domain)

The ".com" TLD is globally recognized, adding credibility and often commanding a higher price. For India, ".in" and .co. In" are valuable assets, and owning both '.com' and '.in' versions of a brand name helps secure your presence in both international and local markets.

3. Sell Your Domain at the Right Time)

Selling a domain, especially a premium one, is a marathon, not a sprint. It can take time to find the right buyer willing to pay the right price. Don’t lose hope if your domain doesn’t sell immediately; as the saying goes, "The fruit of patience is sweet" (Sabr ka phal meetha hota hai).

Selling domains from India has some problems, but there's a smart fix for each one.

1. Finding the Right Price

• Challenge: It's hard to know the right price for a domain.
• Solution: Check past sales, don't just guess. See what similar ".com" and ".in" domains have sold for recently. Use online price-checker tools for a rough idea, but always base your final price on what real domains have sold for.

2. Getting Paid in Rupees

• Challenge: Getting paid in Rupees for a sale in Dollars can be confusing with fees and changing rates.
• Solution: Plan for fees and exchange rates. When setting up your payout on GoDaddy, choose the "direct bank transfer" option. When you set your starting price, remember to include GoDaddy's fee and the USD to INR exchange rate.

3. Too Much Competition

• Challenge: There are many experienced sellers from all over the world.
• Solution: Focus on India, don't fight everyone. Become an expert on domains for Indian trends, cities, or new industries like Artificial Intelligence(AI) or Electric Vehicle (EV) companies. This special knowledge of India gives you a big advantage over other sellers.