discuss Ethical or not: Creating an auction for a specific domain that has 2 or more buyers.

Jay Ha · Sep 23, 2018

Let's say you have a domain which you're doing outbound for and 2 (or more) people showed interest and were willing to buy that domain. After a couple email exchanges negotiating the deal, you decide to create an auction for that specific domain with a minimum bid which is of course their offer on let's say Sedo. You invite all parties interested in this domain name to battle their opponents and who bids higher gets the domain for themselves. Question is this ethical or would this just make them bail?

JayT · Sep 23, 2018

yes, as long as you didn't give them a price to buy it for. If you told them a price, you should sell to the first and explain your mistake to the other.

Jay Ha · Sep 23, 2018

JayT said:
yes, as long as you didn't give them a price to buy it for. If you told them a price, you should sell to the first and explain your mistake to the other.

But in this case all the buyers didn't accept my price and we're still in the middle of negotiations. Maybe I should have made that clearer.

JayT · Sep 23, 2018

well if you didn't agree then yea, it's okay i'd say. To other your other question, yea they would probably be turned off and not bid. They probably wont bid more than what they were trying to offer in the emails, if at all.

MasterOfMyDomains · Sep 23, 2018

i would lmfao if someone did that to me. Set a bin
This is the name, this is price.
Are you going to get them to sign up at sedo to battle it out?
Compare domain to car

Jay Ha · Sep 23, 2018

MasterOfMyDomains said:
i would lmfao if someone did that to me. Set a bin
This is the name, this is price.

So you say this won't work, but this will also mean maybe no one will buy the domain for the price I'm asking for. Auction would at least bring their price a bit closer to my BIN.

MasterOfMyDomains said:
Are you going to get them to sign up at sedo to battle it out?
Compare domain to car

You might have a valid point here, but if you want to buy a car which you're sure it will help your business, wouldn't you take a couple of minutes to sign up at a place and try to "battle it out"?

R.A.L · Sep 23, 2018

Personally, I wouldn't be impressed at all if somebody approached me to purchase a domain and as soon as I showed interest, told me I had to battle it out with a competitor for the 'privilege'. Regardless of the domain, my involvement would end right there.

That's just not how you do business, ethical or not.

MasterOfMyDomains · Sep 23, 2018

Jay Ha said:
So you say this won't work, but this will also mean maybe no one will buy the domain for the price I'm asking for.

Lower your expectations, I mean price.

Jay Ha · Sep 23, 2018

Netmunch said:
Personally, I wouldn't be impressed at all if somebody approached me to purchase a domain and as soon as I showed interest, told me I had to battle it out with a competitor for the 'privilege'. Regardless of the domain, my involvement would end right there.

That's just not how you do business, ethical or not.

It could be frustrating for some, I understand. More NPers voted it is an ethical way though.

MasterOfMyDomains · Sep 23, 2018

I had ganja name for 6 years, into it for 50$
got 200 offer, counter 400. BIN is 500
I thought, no way I am taking 200 after 6 years. 200 buys a lot of renewals, maybe some 1$ .com at NS
To stay in business, you need business. 10 years of this, you gotta play smart. Not every hit is going to be a home run.200 is high as they go

Your poll cant be considered accurate, people here like to play games. 4 votes to two at this time
What other object or possesion can you do the same thing you want to do with domain name?
I ask random 'normal people"( non domainers) about domain names. Even my dentist was confused.
Told him I wouldn't be here now if I hadn't sold a .com
Always selling, learning, asking questions.
You have valid question, this just my opinion.
Put it up for auction, then contact people. Even ebay

Bob Hawkes · Sep 23, 2018

I am not entirely sure it is unethical if they have not accepted a price, but I personally would never do it. I think it is totally fair telling each that you are in negotiation with another party, but to force an auction even though probably the way to get highest prices feels wrong to me.

mdent · Sep 23, 2018

Is it ethical? Sure. Is it a good idea? Probably not.

Jay Ha · Sep 23, 2018

MasterOfMyDomains said:
Lower your expectations, I mean price.

MasterOfMyDomains said:
I had ganja name for 6 years, into it for 50$
got 200 offer, counter 400. BIN is 500
I thought, no way I am taking 200 after 6 years. 200 buys a lot of renewals, maybe some 1$ .com at NS
To stay in business, you need business. 10 years of this, you gotta play smart. Not every hit is going to be a home run.200 is high as they go

Your poll cant be considered accurate, people here like to play games. 4 votes to two at this time
What other object or possesion can you do the same thing you want to do with domain name?
I ask random 'normal people"( non domainers) about domain names. Even my dentist was confused.
Told him I wouldn't be here now if I hadn't sold a .com
Always selling, learning, asking questions.
You have valid question, this just my opinion.
Put it up for auction, then contact people. Even ebay

First I would like to make it clear that I came up with this question thinking it might be a good topic to discuss, there is no current situation where I'm selling a domain and negotiating with 2 buyers.

2nd I like how you think and I agree, the wheels need to keep on moving even if it is an underpriced sale. Funds can always be used to expand inventory or to renew it.

AfterBreak · Sep 23, 2018

why you confuse?
i suggest you to give to buyer with high offers, just simple as that

Jay Ha · Sep 23, 2018

MetBob said:
I am not entirely sure it is unethical if they have not accepted a price, but I personally would never do it. I think it is totally fair telling each that you are in negotiation with another party, but to force an auction even though probably the way to get highest prices feels wrong to me.

Thanks Bob. So you don't like this approach like many others, while also other people prefer to use it than to keep on negotiating.. We'll see the final poll result next week.

Jay Ha · Sep 23, 2018

mdent said:
Is it ethical? Sure. Is it a good idea? Probably not.

Yep, could be a bad idea if the buyers think you're playing them and they bail out the negotiations. But if they see this domain as an asset that would help grow their business, I think they might get on with it.

Bob Hawkes · Sep 23, 2018

Of course one domain marketplace does almost exactly what you are asking about, with first offer triggering an auction, but I think that situation is a bit different. And it could be argued that an auction is the fairest way for each party to know where they stand. I still would not favour doing it though.

I do agree that it is an interesting question, and one that I totally see the argument either way. I predict the vote will come out pretty even but I am not good at predicting elections either

Thanks @Jay Ha for posing a hypothetical ethical question - it is the kind of discussion that helps our community grow in a positive way imho.

Slightly related, has anyone ever developed a domain investor Code of Ethics (if so link please someone!), and if not, should there be? Most professions have them.

R.A.L · Sep 23, 2018

Jay Ha said:
It could be frustrating for some, I understand. More NPers voted it is an ethical way though.

To make the poll meaningful, you need to make the title very clear that this concerns outbound marketing - I have no problem with receiving two inbound queries and setting up an auction to determine a high bidder after notifying them both.

I do have a problem with cold-contacting prospects, piquing their interest and only then explaining they can't have the domain unless they're prepared to fight at auction for it.

Honestly, I'd think you were a joke, particularly considering how low your chances were of receiving a reply to begin with - that's just my personal opinion though.

Jay Ha · Sep 23, 2018

Netmunch said:
To make the poll meaningful, you need to make the title very clear that this concerns outbound marketing

It is literally the first sentence in my post mate:

Jay Ha said:
Let's say you have a domain which you're doing outbound for

*sigh* but I get your point.

Netmunch said:
I have no problem with receiving two inbound queries and setting up an auction to determine a high bidder after notifying them both.

True that's why my question is related to outbound sales since when it comes to inbounds, you are in control in a way or another.

Jay Ha · Sep 23, 2018

MetBob said:
has anyone ever developed a domain investor Code of Ethics (if so link please someone!), and if not, should there be? Most professions have them.

This should be a very interesting read. It would basically bring the whole domaining industry to a whole new ethical level because from what I've seen during my little time here (gonna be 1 month at the 27th), whether we like it or not, there is a stigma around domainers.

R.A.L · Sep 23, 2018

Jay Ha said:
It is literally the first sentence in my post mate:

*sigh* but I get your point.

True that's why my question is related to outbound sales since when it comes to inbounds, you are in control in a way or another.

The poll is above the fold - you can answer it without scrolling down to see the first sentence. I sometimes do this. Outbound doesn't appear in the title. That's all I was saying. Mate.

Jay Ha · Sep 23, 2018

Netmunch said:
The poll is above the fold - you can answer it without scrolling down to see the first sentence. I sometimes do this. Outbound doesn't appear in the title. That's all I was saying. Mate.

It is funny because you still haven't voted yet you're here telling me that the title should say this is about outbound sales or else it is considered misleading. I honestly thought you voted 'yes' and couldn't change it later.

anantj · Sep 23, 2018

Bad idea... I'd say it's on the borderline of being ethical! But if I was the buyer/prospect in this situation, I'd bail except under very rare circumstances - i.e. an exact match of my business or a category killer domain but then, you almost never need to do outbound on such domains!

R.A.L · Sep 23, 2018

Jay Ha said:
It is funny because you still haven't voted yet you're here telling me that the title should say this is about outbound sales or else it is considered misleading. I honestly thought you voted 'yes' and couldn't change it later.

OK - look, it's an interesting thread, just one I have a strong opinion on. Happy to accept I may be in the minority here.

Voted now

Jay Ha · Sep 23, 2018

Netmunch said:
OK - look, it's an interesting thread, just one I have a strong opinion on. Happy to accept I may be in the minority here.

Voted now

Thank you!

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