Buy & Sell Auction Domains: How to Auction Domain Names
Depending on your experience with the world of domain names, you may have stumbled across domain name auction listings online and wondered what they actually are. Domain name auctions are an essential facet of the domain industry, they are usually online events for acquiring and selling domain names.
These auctions present a unique opportunity to secure high-value domains that might otherwise be inaccessible, and they also provide a marketplace for selling your domains to interested buyers. In this article, we will cover the details of domain name auctions and guide you through the process of participating in these auctions effectively, ensuring you can capitalize on the potential they offer.
What is a domain auction?
A domain name auction is the process of buying and selling domain names through an auctioning platform, enabling individuals to bid on previously registered domains that suit their needs. Domain auctions can come in many forms – from user listed domains to expired domains. We’ll cover the variations later in this article.
Websites that provide domain auctions (like Dynadot) allow users to browse for domain names that are listed for auction and place bids on the names they want to acquire. As in any auction, the highest bidder wins, with each auction having a decided starting bid.
Each bid must surpass the previous bid, and users can even place proxy bids to automatically place bids for them if they are outbidded by other users (to a specified maximum amount). Most domain auction services have an auto-extension feature that extends the closing time of auctions that receive last-minute bids (in order to discourage users from sniping domains at the last minute).
If you own a domain name that is no longer in use, it is worth considering selling it off at a domain auction. Which leads us to: how do you auction a domain name?
How to auction domain names?
To list a domain name for auction, you’ll first need to determine the domain sale price. You can do this by looking at comparable domain name sales (through sites such as Namepros, NameBio, or even monitoring top monthly sales through our blog).
You can also set a minimum price for your domain if you’re unsure and hope that bidders will raise it to a fair market price. Once you have a price in mind, you can list your domain on an auction site, such as ours.
The process and requirements for listing domains will vary depending on the where you list the domain. Through Dynadot, the process is as easy as unlocking your account, finding the domain you want to auction under the ‘My Domains’ -> ‘Manage Domains’ page, selecting the domain and choosing the ‘Sell Domain’ option from the action settings.
Then you just need to select ‘Auction’ from the dropdown and determine your starting price! You can learn more about the process and requirements through our help page.
Before you decide to sell your name, one important thing is to decide domain's name value. To do so, you can use help of other various tools, such as a domain name appraisal:
Setting Realistic Auction Prices
One tip regarding listing your domain for auction is having a realistic target price in mind for your domain name. Once you understand the value that your domain provides the owner, look for domains that you consider to be of similar quality that has sold in the past as a reference point.
You can see the many criteria that can make a domain name value in our domain investing guide (under chapter 5). Being honest and realistic with yourself on pricing will help provide more consistency when trying to sell domains.
Types of domain auctions
There are many types of domain auctions, each with their own unique method of having the domains listed. Because of the many types of domain auctions, our aftermarket provides buyers and sellers many ways to capitalize on great domains.
Expired Domain Auctions
If you are looking for a valuable recently expired domain name for your business or domain portfolio, the best option to use would be an expired domain auction listing to place bids on expired domains for sale.
Domains that are not renewed by the registrant will, once they are expired, be listed on the auction. These domains typically enter a grace period before becoming available for auction. After the domain is available on the list, buyers can place bids for 7 days and the highest bidder receives the domain.
The expired auction can be extended if a new bid is placed within the last 5 minutes of the 7 day bidding period. After you have won the expired auction domain name it will be shown on your Dynadot account once the order has been processed.
User Domain Auctions
If you own a profitable domain name or you’re interested in browsing through user-listed domains, our user domain auctions will be the best option available.
The process is the same as any Dynadot auction. The seller sets a minimum price on the valuable domain name and bidders have 7 days to place their bid. Once the highest bidder wins, they become the owner of the domain name.
Domain Backorder Auctions
If you have your eye on a specific domain name that is near full expiration, you may find it on our domain backorder auctions listing.
Domains that receive multiple backorder requests will end up available for bidding. The highest bid after the 7 day bidding period wins, with the highest bidder becoming the owner of the domain name.
If you want to watch and see if a backorder domain becomes a backorder auction, you can track certain domains by putting them on your watch list. This way you will be automatically notified once the domain name is available for auction, so you can start placing bids.
Last Chance Domain Auctions
On the other hand, if you simply love auctioning and battling for the valuable property at the last minute, check out our last chance domain auctions.
All domains listed on this auction page are domains that weren't successfully completed on our other auction listings, meaning they already have some popularity. It’s a great chance to find valuable domain names for a very good price.
Overview of Dynadot Auction Types (and Their Pros & Cons)
Dynadot supports several auction/aftermarket mechanisms. Below is a breakdown of the main ones, along with their strengths and trade-offs.
| Dynadot Auction Type | How It Works / Key Features | Pros for Buyers / Sellers |
| Expired Domain Auctions | Domains not renewed by their owners (after grace/redemption) are placed into a 7-day auction. Bids placed in the last 5 minutes extend the auction by 5 minutes. |
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| User Auctions | Dynadot users list domains they own and initiate 7-day auctions. Sellers set starting prices. Once a domain is listed, sellers can’t modify it (but they can cancel before any bid). |
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| Backorder Auctions | If multiple users place backorders on the same domain, Dynadot opens a public auction for that domain (lasting 7–10 days). |
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| Last Chance | Domains that didn’t receive bids in the Expired Auction get relisted in “Last Chance.” |
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Always start with a realistic minimum bidding price, it increases your chances of selling a domain.
Domain Investment Risks
Listing or buying through domain auctions comes with benefits that can outweigh common risks:
- Lower Holding Costs: Holding onto domains for too long can rack up annual renewal fees. By auctioning unused domains, you free up capital and reduce portfolio carrying costs.
- Fewer Legal Risks: Domains available on reputable auction platforms are less likely to carry major trademark issues, but it’s always smart to double-check on resources like the USPTO Trademark Database.
- Secure Transactions: Auctions through trusted registrars (like Dynadot) minimize payment or escrow risks by managing transactions safely on-platform.
By leveraging auctions, you can streamline your portfolio, avoid unnecessary costs, and benefit from a more secure and transparent sales process.
Sell Your Domain Portfolio: Choosing the Right Platform
There are many reasons to list a domain for sale. You might want to list a domain name for auction if it's not in use and valuable; either because it is memorable, short, or because it ranks well on Google.
If you have an idea for a new company, product, project, blog, or side business, you can register the domain and then auction it off if you decide not to pursue the idea as well. If you're looking for an auction platform, there are many reasons to list your domain name through Dynadot.
1. We're Trusted: We’re an ICANN accredited domain registrar that is known in the domain industry, especially in the domain investing world. You can feel confident that we keep your domain sales and purchasing safe and secure. We even securely handle all the transactions for you when buying and selling through our platform.
2. Low Commission Rate: We only have a industry low 10% commission rate, helping you keep almost all of the profits!
3. Make Offer System: If you’re looking to sell, you can let buyers make offers on your domains and negotiate right from the Dynadot platform, so you get the price you want while landing the sale.
4. For Sale Landing Page: You can use our simple and easy for-sale landing page to help promote your domain name for sale. Allow users to send offers or buy the domain quickly.
Spotlight: Our Monthly Top Auction Sales
Each month, we publish a Top Aftermarket Sales blog post that showcases the highest-performing domain auctions across Dynadot’s marketplace. For example, our Top 10 Aftermarket Sales – August 2025 highlights impressive domain sales from Expired Auctions, User Auctions, Backorder Auctions, Last Chance, Closeouts, and the Marketplace.
By following these monthly roundups, you’ll gain:
- Real-world benchmarks: See what domains are actually selling for, including which extensions, lengths, and keywords are driving value.
- Trend spotting: Spot patterns over time and identify niches or TLDs gaining momentum.
- Motivation & proof: Success stories show that selling through Dynadot auctions works.
- Actionable insights: Compare your own domains to what’s selling to decide whether to hold or auction them.
Domains like share.center ($20,211.99), crisk.com ($20,000), and 95ty.com ($13,918.10) all made August’s list—showing the range of opportunities that auctions deliver.
Want to stay updated? Sign up for our Monthly or Aftermarket Newsletter to get the latest top sales and marketplace insights delivered directly to your inbox.
Conclusion
Domain auctions represent a dynamic marketplace where valuable digital assets change hands daily. Whether you're looking to acquire a premium domain for your business or monetize unused domains in your portfolio, understanding the auction process is essential for success.
The key to thriving in domain auctions lies in thorough research, realistic pricing, and careful risk management. By leveraging the various types of auctions available—from expired domains to user listings—and choosing reputable platforms with strong security measures, you can navigate this market effectively.
Remember that domain investing requires patience and strategy. Not every auction will be successful, and holding costs are part of the business. However, with the right approach and understanding of market dynamics, domain auctions can provide excellent opportunities for both buyers seeking that perfect domain and sellers looking to capitalize on their digital assets.
With a handful of places to list your domain names for auction, why not choose the one that will help you save and provide flexibility? Buy and sell your domain names here and build out your domain portfolio!
FAQs
What happens if I win but don’t pay?
Most auction platforms, including Dynadot, require payment within a set time period. Failure to pay may result in auction ban.
Are domain auctions taxable?
Yes, in most regions income from selling a domain is considered taxable, and buyers may also be subject to applicable taxes. Rules vary by country, so it’s best to consult a tax advisor for specific guidance.
How do I know a domain’s value before bidding?
You can research comparable sales using tools like NameBio or appraisal services, and also consider factors such as keyword relevance, length, and extension. Dynadot’s Domain Appraisal Tool can also give you a quick estimate of a domain’s market value before you place your bid.