IPv4 addresses are in high demand due to their limited supply and widespread use. Organizations can profit by selling or leasing unused IPv4 blocks through auctions. Here’s what you need to know:
- Why IPv4 Matters: Despite IPv6 being available, IPv4 remains dominant. Its scarcity has driven prices from $20 per address in 2019 to $60+ in recent years.
- Auction Types: Common formats include Open Auctions (transparent bidding), Sealed Bids (confidential offers), and Reverse Auctions (price drops for bulk sales).
- Pricing Factors: Block size, cleanliness (no blacklist history), and market trends heavily influence value. Smaller blocks (/24) are pricier per address than larger ones (/16).
- Post-Auction Steps: Ensure compliance with Regional Internet Registry (RIR) rules, complete transfers, and protect address reputation to avoid blacklisting.
- Leasing Options: If selling isn’t ideal, leasing can generate steady income, averaging $0.50 per IP per month.
Quick Overview
| Step | Details |
|---|---|
| Preparation | Verify ownership, check blacklist status, analyze market trends. |
| Auction Types | Open, Sealed Bid, Reverse – choose based on goals. |
| Pricing | Larger blocks often fetch lower per-IP prices; clean blocks are premium. |
| Transfer Process | Follow RIR rules, use escrow for payments, and avoid blacklisting. |
| Leasing | Earn monthly income without selling; ideal for flexibility. |
IPv4 auctions offer a lucrative way to monetize unused resources, but preparation and compliance are key to maximizing profit.
How IPv4 Auctions Work
Getting Ready for Auction
Before diving into an IPv4 auction, preparation is key. Start by verifying ownership – ensure you have the necessary documentation to prove you have the legal rights to transfer the IPv4 addresses.
Next, check if your IPv4 blocks have been blacklisted. Blacklisted blocks are less attractive to buyers and can significantly lower their value.
Take time to analyze the market. Understanding current trends will help you set competitive pricing. For instance, IPv4 prices have surged over the years, moving from $5–$10 per address to around $60.
Once you’ve completed these steps, the next focus is selecting the right auction platform to facilitate your sale.
Using Auction Platforms
Auction platforms play a crucial role in selling IPv4 addresses. Different types of auctions suit different needs, so it’s important to choose the right format:
| Auction Type | Best For | Key Advantage | Typical Outcome |
|---|---|---|---|
| Open Auction | Quick, competitive sales | Transparent bidding with real-time pricing | Achieves market-driven pricing |
| Sealed Bid | Strategic pricing goals | Confidential bids to avoid bidding wars | Often results in competitive offers |
| Reverse Auction | Bulk sales | Simplifies negotiations for large blocks | May lead to lower margins due to competition |
Many auction platforms offer additional features, such as:
- Comprehensive blacklist reports
- Secure payment handling
- Assistance with pre-approvals
- Full management of the transfer process
After choosing a platform, make sure you’re ready to meet all regulatory requirements, especially those set by Regional Internet Registries (RIRs).
Following RIR Rules
RIR regulations are essential to ensure a smooth transfer process. Each region has its own guidelines:
- ARIN (North America): Requires detailed documentation to prove legitimate need. Fees are based on the size of the IPv4 block being transferred.
- RIPE (Europe): Offers faster processing with fewer documentation requirements and no transfer fees.
- APNIC (Asia-Pacific): Implements strict verification processes, with fees also tied to block size.
For inter-RIR transfers, approval is needed from both registries involved. However, AFRINIC currently does not allow inter-RIR transfers.
To comply with RIR rules, you’ll need to prepare several documents, including:
- Proof of ownership for the IPv4 block
- Authorization for the transfer
- Current utilization data
- Technical specifications
- Legal agreements for the transfer
The entire transfer process can take a few weeks, depending on factors like the size of the block, pricing, and RIR-specific requirements. Partnering with experienced brokers can help make the process smoother and ensure compliance with all regulations.
Auction Types and Pricing
Types of IPv4 Auctions
The world of IPv4 auctions offers several formats, each tailored to different buyer needs and market dynamics. Here’s a quick breakdown:
| Auction Format | Description | Best For | Possible Risks |
|---|---|---|---|
| Open Auction | Bidders openly compete until the highest bid wins | Buyers seeking quick deals and competitive bidding | Prices can spiral upward |
| Sealed Bid Auction | Each bidder submits a single, confidential bid; the highest bid wins | Buyers with a strategic approach | Risk of overestimating competitors |
| Reverse Auction | Sellers lower prices to attract buyers | Bulk IPv4 acquisitions | Potentially narrow profit margins for sellers |
Each auction type has its nuances. Open auctions provide transparency by showing current bids, while sealed bids keep offers hidden, reducing the chance of direct bidding wars. Reverse auctions, often used for larger transactions, gained attention when Microsoft purchased 666,624 IPv4 addresses in 2011 at $11.25 per address.
What Affects IPv4 Prices
IPv4 address prices have surged in recent years, influenced by several key factors:
Block Size Matters
- Larger blocks (/16 and above) are highly sought after due to their scarcity, often fetching premium prices.
- Mid-sized blocks (/20 to /17) tend to align with typical market rates.
- Smaller blocks (/24) are more expensive on a per-address basis, largely because of higher administrative costs.
Quality and Market Dynamics
- "Clean" blocks – those without a history of abuse – can command 20-30% higher prices.
- Regional demand plays a significant role, with average prices hovering around $50 per address as of August 2024.
- Lease prices tend to lag behind sale prices by 6-8 months, offering potential opportunities for strategic timing.
Grasping these pricing factors is crucial before diving into post-auction processes like transfers and managing the reputation of acquired addresses.
After the Auction
Transfer and Reputation Steps
After the auction wraps up, the next step is ensuring the transfer process goes smoothly while protecting the reputation of your IP assets. Here’s what to keep in mind:
Transfer Process Timeline
| Stage | Action | Typical Duration |
|---|---|---|
| Payment | Buyer deposits funds in escrow | 1–2 business days |
| Documentation | Submit transfer request to RIR | 2–3 business days |
| RIR Review | Registry verification and approval | 5–15 business days* |
| Final Transfer | Registry update and confirmation | 1–2 business days |
*Processing times can vary depending on the Regional Internet Registry (RIR). For instance, RIPE is known for faster processing times compared to others.
Maintaining Address Reputation
When IPv4 addresses change ownership, they face a higher risk of being blacklisted – up to 4–25 times more likely. To minimize this risk and protect your investment, follow these steps:
- Use email authentication protocols like SPF, DKIM, and DMARC to prevent misuse.
- Keep Whois records updated to reflect accurate ownership information.
- Regularly monitor the reputation of your IPs using specialized tools.
- Maintain detailed records of the transfer history for accountability.
Once you’ve completed the transfer process and secured the reputation of your IPs, you can explore opportunities to generate recurring revenue.
Additional Revenue Options
If you’re holding IPv4 assets, leasing them out can be a great way to earn steady income.
Leasing Benefits
- The average lease rate is about $0.50 per IP address per month.
- Leasing offers flexibility, allowing you to end agreements if circumstances change.
Market Pricing Insights
- Direct sales typically range from $45 to $50 per IP address.
- Premium blocks, such as /16 or larger, can fetch prices as high as $60 per IP address.
Leasing or selling IPv4 addresses not only provides financial benefits but also ensures that these valuable assets are put to good use.
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Panel: Buying and Selling IPv4 Addresses
Working with IPv4 Brokers
Once you’ve ensured a smooth transfer process, partnering with professional IPv4 brokers can help you achieve better results in your auctions.
Why Use IPv4 Brokers
IPv4 brokers simplify the often-complicated auction process and help you get the most value from your transactions. Acting as intermediaries, they handle the intricate details of transfers while ensuring compliance with all necessary regulations.
What Makes Broker Partnerships Beneficial?
| Benefit | Description | Impact |
|---|---|---|
| Market Analysis | Insights into pricing trends and demand | Helps determine the best timing and price |
| Due Diligence | Verifies address blocks and their reputation | Reduces risks during transactions |
| RIR Navigation | Handles registry requirements and paperwork | Speeds up the transfer process |
| Value Optimization | Negotiates prices and evaluates block worth | Increases potential earnings |
Since the global IPv4 depletion in 2011, brokers have become essential in navigating the evolving IPv4 market. Their expertise is particularly valuable in a landscape where individual IPv4 addresses, once priced at $20 in 2019, surged to as much as $60 by 2022.
Industry leaders like V4 Capital Partner offer a full range of services to simplify and optimize these transactions.
V4 Capital Partner Services
V4 Capital Partner is an excellent example of how brokers can provide value. They combine deep market knowledge with technical expertise to ensure successful transactions.
What They Offer:
| Service Area | Features | Benefits |
|---|---|---|
| Address Procurement | Market analysis and strategic acquisitions | Helps secure the best deals |
| Rental Solutions | Flexible lease options with global support | Provides steady income |
| Transfer Management | Handles documentation and RIR compliance | Makes the process hassle-free |
| Investment Consulting | Optimizes portfolios and advises on timing | Maximizes asset value |
Their automated marketplace simplifies transactions while ensuring compliance with regional internet registry policies. Additionally, their global support network ensures smooth operations across various regions and regulatory environments.
Summary
Here’s a breakdown of the key steps and strategies involved in the IPv4 auction process, along with actions to optimize sales and management.
Key Auction Steps
Recent data from March 2025 highlights that 1.4 million IPv4 addresses were transferred.
| Phase | Key Actions | Important Considerations |
|---|---|---|
| Preparation | Address audit and verification | Ensure a clean reputation as previously discussed. |
| Valuation | Market analysis and block sizing | Smaller /24 blocks typically sell for $30-$35 per IP. |
| Platform Selection | Verification and compliance | Use RIR-accredited platforms. |
| Transaction Security | Implement escrow services | Helps mitigate fraud risks during transfers. |
While the auction process is critical, success also depends on post-auction strategies.
Next Steps for IPv4 Sales
Effective management of IPv4 assets can lead to better monetization. With 21% of LIRs holding underutilized IPv4 blocks, there’s significant room for improvement.
Key Success Factors:
- Asset Protection
Implementing full Route Origin Authorization can reduce the risk of route hijacking by 73%. - Value Maximization
Pricing varies by block size:- /24 blocks: $30-$35 per IP
- /22 blocks: $28-$32 per IP
- /20 blocks: $25-$30 per IP.
- Strategic Planning
Companies like Maritz have turned unused IPv4 space into substantial revenue. During their cloud transition, they generated over $1.1 million by monetizing IPv4 assets, using a two-year readdressing plan.
FAQs
What are the advantages of leasing IPv4 addresses instead of selling them?
Leasing IPv4 addresses comes with several notable benefits for businesses compared to selling them outright. For starters, leasing creates a steady, recurring income stream while allowing companies to maintain ownership of their valuable IPv4 assets. This approach keeps future options open, especially if the value of these assets increases over time.
For businesses in need of additional IP resources, leasing also eliminates the burden of large upfront costs. This makes it a more budget-conscious choice, freeing up funds for other priorities like upgrading infrastructure or expanding operations. Plus, leasing provides the flexibility to adjust IP resources as needed, making it a practical solution in today’s ever-evolving digital environment.
How can I keep my IPv4 addresses in good standing and prevent blacklisting after transferring them?
To ensure your IPv4 addresses maintain a strong reputation and steer clear of blacklisting after a transfer, stick to these practical steps:
- Keep an eye on IP reputation by regularly using tools to detect any blacklisting issues early.
- Implement email authentication protocols like SPF, DKIM, and DMARC to verify email authenticity and block spoofing attempts.
- Practice responsible email management by maintaining clean email lists and adhering to anti-spam regulations.
- Strengthen system security to address vulnerabilities and prevent unauthorized access or malware activity.
- Respond promptly to abuse reports to resolve problems quickly and protect your reputation.
If your IPs do get blacklisted, reach out to the appropriate blacklist operators. Show them that the problem has been fixed and request removal. Staying proactive with your IPv4 management ensures their reputation remains intact and their value is preserved during and after transfers.
What should I consider when choosing an auction type to sell IPv4 addresses?
When choosing the best auction type to sell IPv4 addresses, there are several important factors to weigh.
First, the auction format plays a crucial role. Open auctions, where bidders can see and react to each other’s bids, often push prices higher. On the other hand, sealed auctions keep bids confidential, which could result in lower final offers but might appeal to certain sellers or buyers.
Another key consideration is market demand. If demand for IPv4 addresses is high at the time of your auction, you’re more likely to secure a better price. Also, take a close look at the fees charged by the auction platform and their reputation – both can directly impact your overall earnings.
Finally, assess your timeline and urgency. If you’re under pressure to sell quickly, you might need to adjust your approach to prioritize speed over maximum profit.
If navigating these decisions feels overwhelming, teaming up with a trusted partner like V4 Capital Partner can provide valuable expertise to help you maximize the return on your IPv4 assets.