Yes, "bigtime" -- the CAC auction is always a smaller deal. Nice of you to point out one of their smallest auctions as somehow representative of what they do.
Maybe you haven't paid any attention to past TRAFFIC auctions? Here are some 2006 auction results, since they're the first that popped up for me in Google:
Another thing I forgot to mention...in the fine print it states that either party is forbidden to disclose the terms of the contract. How is that helping the seller? Sounds like they may have something to hide more than it sounds like working as a broker on the sellers behalf.
__________________ Those who accept mediocrity will never be disappointed.
Okay, well, let's pretend you’re a “big time” domainer, and you do have occasion to use Moniker's auction service. Let’s pretend you own a million dollar domain. All things considered, would you feel good about signing the Moniker contract? Would you even consider it? If so, Moniker thanks you...and will reward you by soon raising their take to 20% for your next domain at auction.
Speaking only for myself, I certainly wouldn't sign anything like that or give up anything to list it in any auction, especially Moniker's. In fact, they'd have to offer incentives in my favor just for me to list it with them. Would that mean a different (undisclosed) contract? Sure would if they wanted to list my million dollar domain. Think about it.
Then think about this: Why should it be any different for other domains? If you sign their contract that is there to supposedly "protect our interests as well as yours"...if your domain sells at auction, Moniker gets their share and you get yours...fair enough, since you agreed to it. But if your domain doesn't sell, what do you get? In return for an unsold domain, you don't even get financial control of your domain back...because your domain didn't sell in their auction, they get exclusive selling rights to it for a minimum of two months and limited financial rights to it for two years. Tell me how that's for my protection and not about money for Moniker.
__________________ A good domain name is worth more than money.
I've got domains up the Wazoo...wanna buy some?
I have a feeling that they will adjust their contract soon, because as it stands it is totally one sided and unfair to the point that it might be considered entrapment. No company has the right to gain control over their customers beyond what is absolutely necessary for the legitimate operation of their business. Unfortunately it is now a trend with some attorneys throwing in certain clauses in contracts for the sole purpose of gaining control over people in areas that are not related to nor necessary for the legitimate operation of the company and that only serve to keep everyone at their mercy so that they can decide how far they want to take advantage of them later on. In my opinion people do not have any obligations to honor such contracts no matter which company they are dealing with.
My advice to those who want to be domainer friendly is to make sure that your contracts, TOS and prices including any fees or commissions are fair and just to all sides, reply to customer emails and inquiries in a timely and helpful manner (don’t ignore the little guys) and be sure not to abuse your position of control and power over your customers and then you will have a lot of happy domainers on your side.
Monte, is the same contract used by the big domainers as well ?
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† Did We Know That There Aren't Really Thousands Of Bands Who Might Be Interesting, We Will Get To Deleting All Bands That Aren't In Flames, Cannibal Corpse, Morbid Angel, Deicide †
Wouldn't they be in breach of their own contract when they decided to disclose the minimum seller's prices in the silent auctions? Seems to me there is a serious conflict of interests in this contract. As a seller and the one who pays the commission, I expect full representation on my behalf. In real estate, dual agency relationships must be properly disclosed to both parties and the agent's fiduciary duties to each party should be clearly stated. In my experience, working with Moniker has left me, the seller, feeling confused as to who they represent, me or the aftermarket. Yeah, sure they have sold a couple of my names. The question is, did Moniker's efforts sell my names or did my names sell themselves due to low pricing, which of course Moniker insisted upon?
Spot on. A notice on your website is the best sales tool you can get. That way you sell to an end user, not a domainer, which means you have a chance of getting a really good return.
Auctions are only good if you have tier one names.
That won't be disclosed. But I presume 5 % or something.
__________________
† Did We Know That There Aren't Really Thousands Of Bands Who Might Be Interesting, We Will Get To Deleting All Bands That Aren't In Flames, Cannibal Corpse, Morbid Angel, Deicide †
The question moniker needs to ask themselves is does this contract make them money or not. While it may prevent the odd run around of the auction process, it appears to be costing them considerable good will.
The problem moniker faces is they can see when a customer sneaks out of paying a commission, but they can't measure how many customers they are losing because of this contract. This makes it very hard for them to get the balance right between protecting their auction process and attracting new customers. This is something I spend a lot of time thinking about in my business and there are no easy answers.
A two (2) year protection period exceeds the need to protect themselves and crosses into the "domain" of greed, abuse, and contempt.
There was a time when all cell phone contracts required 2 year commitments. Now, in an effort to get new customers, cell and satellite companies are offering no long term commitment contracts......as I suspect Moniker does.
__________________ Those who accept mediocrity will never be disappointed.
Last edited by pixelpadre : 04-02-2008 at 06:32 AM.
While I'm not entirely sure of the rationale behind the 2-year thing, it might be
similar to, say, some employees' contracts having a 1 (or 2?) year ban working
for a competitor after resigning or being fired. Just guessing, though.
In the marketing and selling of homes, there are a number of active tasks that the Broker undertakes: calling prospective Buyers, Broker previews, Open Houses, canvasing neighborhoods with for sale flyers, emailing/calling one's sphere of influence informing them of the available property. The principle here is to go out and get Buyers.
There is also passive marketing: entering properties into the MLS database, PPC campaigns, etc. The principle here is to let Buyers find me.
For Sellers to get the most bang for the commission buck, Brokers augment active and passive marketing.
Regarding domain brokerage in general:
What degree do Brokers actively market domain names? Do Brokers have contacts in other industries that they contact weekly, providing them a list of domains covered under Exclusive Agreement? If so, exactly which companies in which industries are contacted? Do domain brokers work WHOIS records for prospective end-users and send auction invites or notify them that domains are available that may fit their business?
This information should be disclosed to the Seller when a non-circumvent clause is on the table. Exactly who can't the Seller sell to within a certain time period?
Was watching on TV last night a story about those two. Their highest commission rate is 10% but most cases 2%. Ironically the Dept of Justice convicted them of conspiring to keep commission rates high.
page 9 Florida Realtor Apr'08: Sect 475.25(1)(r) FL Statutes provides that any real estate licensee is in violation if they have not included a definite expiration date and that automatic renewals does not qualify as such.
__________________ Those who accept mediocrity will never be disappointed.
Last edited by pixelpadre : 04-03-2008 at 12:59 PM.
FWIW, in defense of cutting special deals. I contacted Moniker last year about a 6 figure buy and wanted to see if they could lower their percentage for escrow on it. I was told their percentages were firm. I don't know if the same is true for domains that are auctioned (ie the referred to 'preferred' pricing) but I can't imagine it would be given that they lost a several thousand dollar commission on a relatively easy transaction because of not budging.
__________________
† Did We Know That There Aren't Really Thousands Of Bands Who Might Be Interesting, We Will Get To Deleting All Bands That Aren't In Flames, Cannibal Corpse, Morbid Angel, Deicide †
Well, they need to be given a chance to correct this situation, but to say that nothing is wrong with this contract and being protective of the current process is simply putting one’s interest above all principles.
Their hard nosed approach to "if you ignore it (this thread), it will go away" is the same hard nosed approach to their take it or leave it contract. At least they are consistent.
AFAIK?
To my knowledge, domains arent real estate, but Mr. Monte compared them to real estate.
Supreme court has ruled that domains are in fact real estate though. But I think that was for the purpose of income tax or something. Been a while since they commented on that. Time flies.
__________________ Those who accept mediocrity will never be disappointed.
