discuss Do you trust the major auction websites?

dropcatch.com (huge domains) bids against their own users. While back-ordering on dropcatch.com, you are only alerting them to the good domains. They will probably bid against you to make you pay top dollar. If you give up, no problem for them, they could bid it to $10,000, they don't pay that, they only pay $8 because it's their platform, they paid reg-fee. IDK why anyone would use them while they pump up the prices on all the domains we try buying. Ditch them IMO, let them buy all the junk on their own, like they often do. Without everyone alerting them to the good domains, hugedomains wouldn't be doing very well.

JayT said:

dropcatch.com (huge domains) bids against their own users. While back-ordering on dropcatch.com, you are only alerting them to the good domains. They will probably bid against you to make you pay top dollar. If you give up, no problem for them, they could bid it to $10,000, they don't pay that, they only pay $8 because it's their platform, they paid reg-fee. IDK why anyone would use them while they pump up the prices on all the domains we try buying. Ditch them IMO, let them buy all the junk on their own, like they often do. Without everyone alerting them to the good domains, hugedomains wouldn't be doing very well.

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This is the exact opposite of the truth. HugeDomains are only permitted to bid against you if you buy Discounted Backorder at DropCatch. If you bid a full priced backorder at DropCatch. HugeDomains are excluded from competing against you for the same domain. This is all clearly explained in their ToS.

They changed it? hugedomains was winning ones I bid on when I first started domaining and tried them.

By Major Auction Houses I presume you mean Sedo/Afternic/GoDaddy/DropCatch/NameJet/SnapNames. I've had bad experiences with all of them apart from DropCatch.

The absolutely worst examples have been with Afternic/GoDaddy, where you win the domain, you get charged for the domain, they tell you the date when the domain will be in your account, But the domain never appears in your account, and when you ask them why, they simply refund you. And you give up following the domain in the search for the truth, because it is still under transfer via Afternic/NameFind months after you have been refunded. Now if Afternic/NameFind are involved. It can only mean that it was sold by either GoDaddy or Afternic. Sister companies. And never given to me. Who won the auction. They will never tell you the truth about what actually happened. They just refund you and move on.

IMHO. GoDaddy should rethink their strategy in selling these 3rd party registrars expiring portfolios. And start again with those which only sign-up again with a common agreement. This, "we are sorry, because we have to abide by out contract with the registrar". Just doesn't cut the mustard. And they are doing tremendous damage to their expiring domain name auction status, with this excuse.

I can see why they tolerate this. It's principally, that as it stands now, they have a major stranglehold on the expiring domain marketplace. Which would be weakened by tearing up those crappy agreements they have signed with these mostly crappy registrars. Which might leave for a competitor to take over. Which is probably much less desirable to GoDaddy than fixing this crappy mess where they put the blame on the crappy contracts they have signed. This problem won't go away, until every 3rd Party Registrar is working under the same contract. Which should be the first, and most important thing to fix. IMHO. If the 3rd Party Registrar doesn't agree to these standard terms, they should not be allowed to sell their expiring portfolio, at GoDaddy Auctions. Period.

JayT said:

They changed it? hugedomains was winning ones I bid on when I first started domaining and tried them.

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What time-frame are you talking about? It's been the same way since they introduced the Discount Backorder Club. I'm not motivated to do the research as to when that started up. Anyone know that answer? But it been many years already.

Sometime in early 2015. I just never went back after I tried a few domains. oh well thanks for letting me know now. I read terms conditions just now and see what u are talking about, they won't bid against you if you pay for the full dropcatch price. I would be afraid to try the discount club though. Whenever I tried catching somewhere else huge domains gets them anyway so was no chance still.

JayT said:

Sometime in early 2015. I just never went back after I tried a few domains. oh well thanks for letting me know now. I read terms conditions just now and see what u are talking about, they won't bid against you if you pay for the full dropcatch price. I would be afraid to try the discount club though. Whenever I tried catching somewhere else huge domains gets them anyway so was no chance still.

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Agreed.

Actually, DropCatch is my #1 choice for drop-catching dropping domains. They have a market leader domination of more than 50% market share, against their 2 biggest rivals SnapNames and NameJet, they are $20 cheaper than these two, and your bid neutralizes HugeDomains as a competitor. If there are no other bids at DropCatch for the domains you backorder. you win the domain outright. Perfect.

The only downside is that if there are 2 or more bidders, the auction go to a public auction, not a private auction for those who pre-bid on the domain. But this is not as bad as it seems. Because if you don't like it, you can take your business elsewhere, which won't win the drop-catch race for this domain anyway You can participate in the auction if you choose to do so. Or just watch it out from the sidelines.

I do believe Godaddy does everything in their power to stop shill bidding but like stub said their agreements with other registrars are crap and I stay losing domains after they're paid for. I just paid for my last year of DDC and will be moving the remainder of my names elsewhere throughout the year.
Namejet and snap have come a long way, but have turned their heads too often when it comes to the big players.
Dropcatch may be the same from what I've read here giving extended pay periods to their biggest helpers. I'll make money using them regardless.

I trust them as much as the government.

i trust: GD only

voted NO

When it comes to money, I don’t trust anyone.
Every company has 1 goal and that is to make as much money as possible.

stub said:

This is the exact opposite of the truth. HugeDomains are only permitted to bid against you if you buy Discounted Backorder at DropCatch. If you bid a full priced backorder at DropCatch. HugeDomains are excluded from competing against you for the same domain. This is all clearly explained in their ToS.

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What type of outside oversight is there in place to ensure that they comply? You're mighty naive if you think that just because it's in their TOS that they abide by it. HugeDomains doesn't have the best reputation out there and it's owned by the same people that own DropCatch.

Smiles76 said:

What type of outside oversight is there in place to ensure that they comply? You're mighty naive if you think that just because it's in their TOS that they abide by it. HugeDomains doesn't have the best reputation out there and it's owned by the same people that own DropCatch.

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I think people would find out eventually though whois. They would have to use alias and even then, sooner or later they'd get caught.

Premiums said:

i trust: GD only

voted NO

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The worst offenders. IMHO. Actually. This is a TRUST question. The question is too broadly asked. IMHO. There are many categories "Auction House". They can rank differently in each category. There are Expiring Domain Auctions, Dropping Domain Auctions, Domains being Actioned by their owners. To name just 3. It is possible or any company to rank differently in all these categories.

For example, IMHO, GoDaddy rank bottom (for TRUST) in the Expiring Domain Category because they are auctioning domains from shoddy registrars, all with different terms and conditions (which PHD decided that was a good idea), which result in the ratio of worst domains rcvd to domains won. GoDaddy make a big deal about caring about their customers. But their actions speak louder than their words. with this ratio. The don't give a flying pig about their customers who don't receive the domains they have won but never receive. If they did, they would ban 3rd Party registrars from using their Auction Platform for selling their domains that they don't deliver, and not make excuses like "we have to abide with the contract our 3rd Party Registrar,here's your money bank, better luck next time". They would also offer compensation. Like for example, a free six month subscription to their DDC for every won domain to every customer who doesn't receive their domain. THAT is at least showing some care about their customers. I do not TRUST them to be looking after my best interests for domains not registered at GoDaddy. They may also be the only Auction House left which POINT BLANK refuse to use Bidder ID's. This no BIDDER ID's is a HUGE TRUST issue. It would be easy for GoDaddy to indicate (with a 1 char column) telling viewers of these auctions were registered at Godaddy or elsewhere. "G" for GoDaddy "blank" for registered elsewhere. But we get told to look them up in the whois. Which is a much cumbersome exercise than watching a G or No G on the screen. It should be in the search criteria too. For full disclosure, GoDaddy get low marks. Which is yet another TRUST issue

For Dropping Domain Auctions. GoDaddy don't even have a market. The best they can do is offer you a Drop Catch Service, which cannot even compete with a GoDaddy Hand Registration. The only domains they catch with this service is only domains NOT picked up by the likes of DropCatch, SnapNames, NameJet, and others, and which are not picked up by their own Hand Registrations. It's so pathetic, it would be funny, if it wasn't for the fact that they allow you can transfer the unfulfilled backorder to another domain. And repeat the cycle. To TRUST them to capture any dropping domain is absolutely absurd.

For Domains auctioned by their owners, registered at GoDaddy. Where they control their own destiny. They do a good job. Which is to be expected. EXCEPT for the lack of BIDDER ID's. Did I mention that NO BIDDER ID's is a HUGE TRUST ISSUE already?

So GoDaddy rate poorly on TRUST issues overall. IMHO.

In my experiences, I have had more problems with shoddy bidders than the actual auction houses themselves. I notice when a bid war begins, people get pissed off, and purposely hyper inflate the final price of the domain by bidding when they know they are done and out, It is easy to spot this kind of foolishness, and no one wins in the end, the auction winner ends up paying over what they would have to pay had this not been going on, sometimes substantially over paying. everyone else involved in the auction has simply wasted their time when it is over. In essence, it is a form of shill bidding, by vindictive idiots.

.X. said:

In my experiences, I have had more problems with shoddy bidders than the actual auction houses themselves. I notice when a bid war begins, people get pissed off, and purposely hyper inflate the final price of the domain by bidding when they know they are done and out, It is easy to spot this kind of foolishness, and no one wins in the end, the auction winner ends up paying over what they would have to pay had this not been going on, sometimes substantially over paying. everyone else involved in the auction has simply wasted their time when it is over. In essence, it is a form of shill bidding, by vindictive idiots.

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Your situation is correct. But the 2nd highest bidder pays only the winning price for his highest bid as if the the winner had not bid. Of course with more than 2 bidders, there can be also be bidding higher by more than 1 party. But I don't think you can blame GoDaddy for that. You cannot expect them to get into the mind of a bidder who wins the domain because of a default, and pays.

stub said:

Your situation is correct. But the 2nd highest bidder pays only the winning price for his highest bid as if the the winner had not bid. Of course with more than 2 bidders, there can be also be bidding higher by more than 1 party. But I don't think you can blame GoDaddy for that. You cannot expect them to get into the mind of a bidder who wins the domain because of a default, and pays.

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Yep, You are right, there is no way to actually control a auction, I have never had any problems with Godaddy auctions, when i have won, i have always received my name within a 14 day time frame. I can't really think of any negative experiences when buying from any of the auction sites, at least none that weren't my own fault.

Kate said:

I trust them as much as the government.
-------------------------------
PGP key
"You are either at the table or you are on the menu"

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Auction websites are at the table and you will be on the menu

But they have all had their fair share of scandals right ? I mean, we are not talking about some stuff that could hypothetically happen, but that has happened already and may repeat itself in the future, because there is no oversight and no accountability really.

In the real world certain business activities like escrow, auctions etc are subjects to audits, regulation and codes of conducts, have to abide by KYC and procedures against money laundering and insider trading. Nothing of the sort in our industry. It's the fox guarding the henhouse.

GD have done shady business, for example: https://domainnamewire.com/2008/12/03/standard-tactics-llc-how-godaddy-profits-from-expired-domains/
So, knowing this, should I trust them today, when bidding on their platform ? Maybe people become ethical and different after being caught red-handed. Perhaps shame turns people into better persons, who knows. Maybe they'll repent and improve their ways, or they will simply do better not to get caught next time.

Other registrars have engaged in dirty stuff as well, and tried to distance themselves from their dubious offshoots. Enom, Netsol, for example. I know we are not here to talk about registrars, but when they get involved in auctions sites either as founders or suppliers you have to keep this in mind. This industry is too incestuous to be trusted.

GD is also one of the few major venues that is resisting the use of bidder handles. Either they don't want to finance a costly overhaul of an old and buggy system (?), or they don't welcome the increased scrutiny and accountability that would ensue. At least, they now have a policy that forbids employees from bidding in auctions. But it took a mini-scandal for them to have a policy in place, remember. But other venues are not all that clear.
They certainly could do better.

I should also add that even if people are perfectly honest, their systems may still be gamed by insiders.
Examples: rogue employee (Snapnames), or hackers penetrating the system and gaining insider knowledge, possibility altering computer data or interfering with normal operations.
These days, hacking and data breaches are the new normal, tight security is the exception.
Some types of businesses like credit card processors, banks, casinos etc are required to follow PCI rules or undertake penetration testing on a regular basis to assess their systems. And we still have large-scale breaches like OPM or Equifax.
But businesses that are not regulated surely care even less.

So far I dont have any reason to distrust any of the major platforms, but I will say that I am dissatisfied with one of them (GoDaddy). I've had 2 separate instances where they have allowed fake buyers to take my auction down for an extended time. This last time my auction was down for nearly 3 weeks before I could get it back up. They don't seem to mind people playing games on their platform. When I called customer service, they simply did not care.

equity78 said:

Do you trust GoDaddy Auctions, NameJet, Snapnames

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Namejet and Snapnames AKA The SHILL BIDDERS are the worst auction platforms on the planet.

@NameJetGM I will wait until the manager of Namejet: Jonathan gets FIRED to list for auction some Premiums domains on Namejet. He has been the manager there for just 3 years and last year was the Shill Bidding Massive scandal, so make your own conclusions...

I voted yes

only because I know as a company/service, they will act in their own best interest.

which is money.

initially and thru out their existence, they have to have, or portray, a sense of stability and credibility, and to a degree have enough transparency in the process, that the general public finds acceptable and or reasonable....given what one can get in return for using their respective platforms.

but it's the individuals that may own, operate, administer within these systems, who have opportunity to increase the credibility in all facets, or corrupt it to the point of failure.


just puff-puff....snort, exhale slowly.... saying


imo….

biggie said:

I voted yes

only because I know as a company/service, they will act in their own best interest.

which is money.

initially and thru out their existence, they have to have, or portray, a sense of stability and credibility, and to a degree have enough transparency in the process, that the general public finds acceptable and or reasonable....given what one can get in return for using their respective platforms.

so yeah, I may trust in the company's slogan, objective and or mission statement
​

but it's the individuals that may own, operate, administer within these systems, who have opportunity to increase the credibility in all facets, or corrupt it to the point of failure.


just puff-puff....snort, exhale slowly.... saying


imo….

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Your reasoning sounds like a NO vote to me

I DO NOT TRUST THEM IN A HOUSE.
I DO NOT TRUST THEM WITH A MOUSE.
I DO NOT TRUST THEM HERE OR THERE.
I DO NOT TRUST THEM ANYWHERE.
I DO NOT TRUST GD DOMAIN AUCTIONS
I DO NOT TRUST THEM, SAM-I-AM.