GoDaddy.com runs its very own expired domain name auctions "in-house" and sells the expired domain names of its customers. (A to Z info about expired domain process at GoDaddy.com) The vast majority of domain name registrars sell the expired domain names of its customers, so this is not something new.

What are the chances of selling expired domain names of your customers could bring in $1 Million dollars every month? At GoDaddy, it appears to be pretty much the case.

Our good friends over at ExpiredDomains.org offers an expired domain name tool for GoDaddy and they keep track of not only expired domain names but the ones that sell (Trends) and for how much! This allows a pretty good idea into the amount of expired domain names GoDaddy is selling each month.

Based on the "trends" that I have been watching, ExpiredDomains.org is reporting week after week of sales of expired GoDaddy domain names in the tune of $200,000 +/-. Most weeks the numbers are over $200K, sometimes they do dip below $200K as it all depends on the quality of domains at auction per week.

Now $200K x 4 weeks is $800,000 but if you add in the fact that when you win an expired domain name auction, you must pay for the "domain name renewal" of the expired domain auction you won at the same time… this raises the income for GoDaddy on these expired domains by about $10 each domain.

With the profits of domain renewal and the sales of the expired domain auctions (which are almost pure profit), I think it is pretty fair to say that GoDaddy is pulling in about $1 Million Dollars a month on expired domain names. Sometimes a little more, sometimes less a little less.

Since the "quality" of expired domain names are not always the best at GoDaddy, it would be interesting to see the numbers over at NameJet.com . NameJet offers expired domain names from Network Solutions, which IMO holds a large portion of some great domain names. Many of these domain names do expire and are then auctioned off at NameJet.

The one big difference at NameJet, a lot more hands are in the pot. NameJet gets a cut for selling the domain name, Network Solutions gets a cut because they are the registrar and NSI even gives a cut back to the past owner of the domain name in some cases. Several registrars send domain names to NameJet and some of those are, Fabulous, eNom and many of it’s resellers, Register.com and Tucows to mention a few.

NameJet.com and SnapNames.com work very similar, as many hands are in the pot.

GoDaddy stands on its own as they keep the majority of profits coming in from the sales of expired customer domain they auction and it is a fair chunk of change for something they technically didn’t pay for (the domains). Almost like free money, with the benefit of also making money on the domains renewal at time of the auction purchase PLUS the chance to do it all over again if the new owner doesn’t renew again in the future and the domain repeats the process.