A domain auction site provides the platform to put domains up for auction. There are thousands of potential buyers on large domain auction sites like Sedo. Simply create an account with the auction site to list your domain for sale. Depending on the auction site, you may have the choice between instant purchases or auctions within a set time. Minimum bids can be set to avoid losses. The auction site will usually charge a commission fee on sales.
We’ll use Sedo as an example to explain how a domain auction site is used.
Step 1: Create an account on sedo.com.
Step 2: Put the domain up sale. It can be listed for free. You can use the “Buy it now” option for no bidding or you can start an auction. Sedo also offers the paid option “Premium Listing” for more traffic. There is a $59 fee for a direct auction (as of August 2022).
Step 3: A 15 to 20 percent commission fee is charged on sales. The owner to buyer transfer follows, which includes an escrow service. This is completed with an auth-code generated by the registrar, which you receive from your provider and domain provider. This illustrates the difference between buying and registering a domain. A domain itself cannot be bought, rather the domain holder’s use rights must be acquired.