In recent times, GoDaddy, one of the world’s largest domain registrars, has come under fire as users share alarming experiences of domain theft following searches on their platform. A Reddit thread titled “Someone bought domain name same day I filed to incorporate my LLC” has brought attention to the controversial practices of GoDaddy and the frustration users face when their desired domain is registered shortly after a search on the platform.

The Unfortunate Incident

The Reddit user in question detailed the sequence of events. After paying LegalZoom to incorporate an LLC, they proceeded to GoDaddy to purchase the corresponding domain only to find out that someone else had registered it on the same day. The domain, linked directly to the user’s business name, was swiftly acquired by a company named “Domain by Proxy.”

Reddit community weighs In

The Reddit community was quick to respond, with users sharing their insights and experiences. Some users criticized the individual for not purchasing the domain prior to LLC registration, emphasizing the importance of securing the domain as soon as it is considered. However, a significant number of comments shed light on GoDaddy’s controversial practices.

User “kyle-james21” claimed, “GoDaddy is known for buying up domains after you search for them on their website.” This sentiment was echoed by others in the thread, expressing concern and frustration over what they believe to be GoDaddy’s unscrupulous behavior.

GoDaddy’s alleged domain snatching

Several users in the thread accused GoDaddy of a practice commonly referred to as “domain snatching.” This involves registrars registering domains that users search for but do not immediately purchase. The idea is that, after a search indicates interest, the registrar secures the domain with the intent to sell it at a higher price to the interested party.

User “Device_Outside” expressed their belief, stating, “That’s GoDaddy, who stole the domain from you. GoDaddy tracks their searches, buys the domains, and then resells it at a higher cost.”

GoDaddy’s reputation takes a hit

The Reddit thread highlighted a widespread perception among users that GoDaddy engages in questionable practices to boost its profits.

Doing research on the subject, threads have proliferated on the Internet regarding the “disappearance” of free domains that moments earlier were searched via the domain search engine on GoDaddy.com.  Most often, the domain searched for by a user appeared available for PREMIUM purchase through another GoDaddy brand – NameFind.

The practice of building up one’s own domain portfolio and offering it on the secondary market by a domain registrar can be controversial and distrustful on the part of customers due to concerns about seizing domains that users search for or expire due to starexperience.