I purchased an expired domain on Godaddy Auctions for about $1,500 which had quite a few backlinks. I thought it would give me a head start with SEO.
I, unfortunately, didn't research the domain out properly before buying it. The domain seems to have been used to spam people (it is on a few domain block lists) and likely also has a Google penalty.
Is there any recourse for such domains to clear their old status since they're under new ownership now? Or should I just admit my $1500 went down the drain and move on?
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You have to ask yourself if your time to do all these (and likely more to get it removed from email spam blacklists) is worth the $1500 you are trying to salvage now.
If the answer is no, just use LeanDomainSearch to find another domain name. Or another expired one on auction (don't forget to do your due diligence this time around :)