- Impact
- 13
Afternic Confirms Payout Already Sent to Seller, Then Later Reveals Buyer’s Funds Not Verified
Hello Everyone,
When sellers receive confirmation that payment for their domain sale has already been sent to them by Afternic,
how could they possibly anticipate that Afternic would later disclose that the buyer’s funds hadn’t even been verified.
Afternic’s practice of confirming payment has been sent to the seller and expressing anticipation for their next sale,
only to later instruct the seller to take the domain back due to unverified buyer's funds, is, in my view,
a subpar sales process.
This approach can have serious repercussions for all parties involved, including GoDaddy and sellers.
If this issue is inherent to Afternic's operations, transparency is not just important—it's essential in my opinion.
When Afternic sends sellers a confirmation that the payout for their domain sale has already been sent to them,
they should also include a clear warning that the seller may later receive a notice from Afternic revealing
the buyer's funds are not verified, instructing them to take the domain back.
Additionally, Afternic should advise sellers, along with the confirmation that payment has been sent to them for
their domain sale, to delay any financial reinvestment decisions until they receive further notice from Afternic
in case the buyer's funds have not been verified.
I want to sincerely thank you all for this invaluable platform that supports the entire domain community.
With around 20 years in the industry, I've mostly preferred to operate quietly. that's just how l am.
Like many of you, I've had both successes and challenges in various marketplaces.
However, this situation felt distinctly different from anything I had previously experienced.
For anyone who's interested here’s an overview of how this perplexing situation unfolded:
"Congrats" ...........com "has sold and we're ready to transfer"
They congratulated me on the sale of the domain, informed me it sold for my buy now price and indicated they
were ready for me to initiate the domain transfer.
"The transfer for" ...........com "is done!"
They informed me they had good news that the transfer of the domain has been successfully completed.
"Your funds are on their way"
They confirmed they had just sent me the payout for the domain sale, thanked me, and expressed their anticipation
for my next sale. With a payout exceeding $30,000, I was pleased and ready to make some reinvestment decisions.
Then much later on that day, I received a couple of correspondences. Here's an overview:
"Bad news, the funds for" ...........com "could not be verified"
They revealed that they hadn't even verified the buyer's funds, which left me feeling both uneasy and perplexed.
They instructed me not to release the domain, make any account changes, or accept any transfer requests,
which puzzled me since I no longer had control or authority over the domain. How could I possibly release,
modify, or transfer a domain that I no longer owned or had any authority over.
They also informed me that they had re-listed the domain for sale and asked me to log into my account to
review and update the current price on the listing as needed. I found this request baffling since the domain was
no longer in my Afternic account.
This indicated that they manually re-listed the domain in my account without my request, even though I
no longer had any legal rights or control over it.
At the same time, I received another email, below is an overview:
...........com -- "ACTION REQUIRED"
They said they were contacting me to let me know they did not have a valid sale for this domain name.
As a result, they are Returning the domain name to me. They asked me to please use the Authorisation Code
to initiate a transfer back to me.
I also received some follow-up emails requesting that I initiate the transfer of the domain back to me.
This entire perplexing situation left me feeling both confused and uneasy.
I felt it was important to take a step back and thoroughly assess everything before deciding how to respond.
I wanted to ensure I fully understood the scope of the issue before taking any action.
Upon reflection, I recalled a section in the membership agreement that referenced a similar scenario. I revisited the
Limited Warranty for Domain Sales within the membership agreement and scrutinized the stipulated conditions.
After a thorough review, I concluded that all criteria outlined in the Limited Warranty for Domain Sales had
indeed been satisfied under the criteria for a completed sale.
The Limited Warranty for Domain Sales in the membership agreement states that if a buyer fails to fulfill their
payment responsibilities, Afternic agrees to pay the seller if all criteria for a completed sale, as defined by the
limited warranty, are met.
In this case, the domain was listed on a GoDaddy-owned platform, completed a 'Buy Now' transaction,
and was transferred to Afternic's control—all confirmed by Afternic. I also received a receipt of payment from
Afternic, confirming the payment had already been sent to me and expressing anticipation of my next sale.
Since the transaction met all the criteria in the Limited Warranty, I concluded it qualifies as a completed sale,
with payment guaranteed by Afternic under their Limited Warranty for Domain Sales.
I decided to send a detailed, respectful response to Afternic, addressing key points.
I emphasized that if confirming payment before verifying funds isn't standard practice, l trust they will
take steps to prevent it. If it is inherent in their sales process, I urged them to inform all participants due
to potential repercussions.
I also highlighted the Limited Warranty for Domain Sales, showing how each criterion for a completed sale was met.
Approximately 14 days later, I received correspondence from Afternic with no reference to anything
within my detailed and respectful correspondence to them.
An overview of the response below:
RE: ...........com -- "ACTION REQUIRED"
They said they wanted to follow up to ensure that I initiate the domain transfer to a registrar of my choice
and asked me to reply to the email once I’ve started the process.
I was very surprised that they did not even comment on my detailed and respectfully written email.
I decided to give them another chance to acknowledge my concerns and request by replying to their
recent email with a copy of my original detailed correspondence from around 14 days ago.
This time, I received a prompt response with an overview below:
RE: ...........com -- "ACTION REQUIRED"
They thanked me for my cooperation and assured me that they are currently looking into it.
And stated they will respond as soon as possible.
Around 14 days later, I received their response. An overview is below:
They followed up, stating they were reaching back with an update regarding my case.
Their update stated there was no valid sale for the domain, so they would be returning it to me.
They instructed me to use the provided authorization code to initiate the transfer back to me.
They refused to address my concerns, offering no response or clarity. Afternic has not clarified whether this issue
stems from an inherent flaw in their sales process or if they are taking steps to prevent it.
They also refused to comment on sending payment confirmations that the payout for the domain sale has
already been sent to the seller before verifying the buyer’s funds, or on the Limited Warranty for Domain Sales.
What is the intended purpose of the Limited Warranty for Domain Sales within the Membership Agreement,
beyond its role in determining whether a domain sale qualifies as a Completed Sale and, if so,
guaranteeing payment by Afternic under the terms of the Limited Warranty for Domain Sales.
Does this Limited Warranty For Domain Sales serve any other roles or functions within the
Membership Agreement that aren't explicitly stated.
This is my story as it has unfolded at this stage, and I felt it was important to share it with all of you. I sincerely
wish everyone continued success and growth in the industry as we move forward together.
Hello Everyone,
When sellers receive confirmation that payment for their domain sale has already been sent to them by Afternic,
how could they possibly anticipate that Afternic would later disclose that the buyer’s funds hadn’t even been verified.
Afternic’s practice of confirming payment has been sent to the seller and expressing anticipation for their next sale,
only to later instruct the seller to take the domain back due to unverified buyer's funds, is, in my view,
a subpar sales process.
This approach can have serious repercussions for all parties involved, including GoDaddy and sellers.
If this issue is inherent to Afternic's operations, transparency is not just important—it's essential in my opinion.
When Afternic sends sellers a confirmation that the payout for their domain sale has already been sent to them,
they should also include a clear warning that the seller may later receive a notice from Afternic revealing
the buyer's funds are not verified, instructing them to take the domain back.
Additionally, Afternic should advise sellers, along with the confirmation that payment has been sent to them for
their domain sale, to delay any financial reinvestment decisions until they receive further notice from Afternic
in case the buyer's funds have not been verified.
I want to sincerely thank you all for this invaluable platform that supports the entire domain community.
With around 20 years in the industry, I've mostly preferred to operate quietly. that's just how l am.
Like many of you, I've had both successes and challenges in various marketplaces.
However, this situation felt distinctly different from anything I had previously experienced.
For anyone who's interested here’s an overview of how this perplexing situation unfolded:
"Congrats" ...........com "has sold and we're ready to transfer"
They congratulated me on the sale of the domain, informed me it sold for my buy now price and indicated they
were ready for me to initiate the domain transfer.
"The transfer for" ...........com "is done!"
They informed me they had good news that the transfer of the domain has been successfully completed.
"Your funds are on their way"
They confirmed they had just sent me the payout for the domain sale, thanked me, and expressed their anticipation
for my next sale. With a payout exceeding $30,000, I was pleased and ready to make some reinvestment decisions.
Then much later on that day, I received a couple of correspondences. Here's an overview:
"Bad news, the funds for" ...........com "could not be verified"
They revealed that they hadn't even verified the buyer's funds, which left me feeling both uneasy and perplexed.
They instructed me not to release the domain, make any account changes, or accept any transfer requests,
which puzzled me since I no longer had control or authority over the domain. How could I possibly release,
modify, or transfer a domain that I no longer owned or had any authority over.
They also informed me that they had re-listed the domain for sale and asked me to log into my account to
review and update the current price on the listing as needed. I found this request baffling since the domain was
no longer in my Afternic account.
This indicated that they manually re-listed the domain in my account without my request, even though I
no longer had any legal rights or control over it.
At the same time, I received another email, below is an overview:
...........com -- "ACTION REQUIRED"
They said they were contacting me to let me know they did not have a valid sale for this domain name.
As a result, they are Returning the domain name to me. They asked me to please use the Authorisation Code
to initiate a transfer back to me.
I also received some follow-up emails requesting that I initiate the transfer of the domain back to me.
This entire perplexing situation left me feeling both confused and uneasy.
I felt it was important to take a step back and thoroughly assess everything before deciding how to respond.
I wanted to ensure I fully understood the scope of the issue before taking any action.
Upon reflection, I recalled a section in the membership agreement that referenced a similar scenario. I revisited the
Limited Warranty for Domain Sales within the membership agreement and scrutinized the stipulated conditions.
After a thorough review, I concluded that all criteria outlined in the Limited Warranty for Domain Sales had
indeed been satisfied under the criteria for a completed sale.
The Limited Warranty for Domain Sales in the membership agreement states that if a buyer fails to fulfill their
payment responsibilities, Afternic agrees to pay the seller if all criteria for a completed sale, as defined by the
limited warranty, are met.
In this case, the domain was listed on a GoDaddy-owned platform, completed a 'Buy Now' transaction,
and was transferred to Afternic's control—all confirmed by Afternic. I also received a receipt of payment from
Afternic, confirming the payment had already been sent to me and expressing anticipation of my next sale.
Since the transaction met all the criteria in the Limited Warranty, I concluded it qualifies as a completed sale,
with payment guaranteed by Afternic under their Limited Warranty for Domain Sales.
I decided to send a detailed, respectful response to Afternic, addressing key points.
I emphasized that if confirming payment before verifying funds isn't standard practice, l trust they will
take steps to prevent it. If it is inherent in their sales process, I urged them to inform all participants due
to potential repercussions.
I also highlighted the Limited Warranty for Domain Sales, showing how each criterion for a completed sale was met.
Approximately 14 days later, I received correspondence from Afternic with no reference to anything
within my detailed and respectful correspondence to them.
An overview of the response below:
RE: ...........com -- "ACTION REQUIRED"
They said they wanted to follow up to ensure that I initiate the domain transfer to a registrar of my choice
and asked me to reply to the email once I’ve started the process.
I was very surprised that they did not even comment on my detailed and respectfully written email.
I decided to give them another chance to acknowledge my concerns and request by replying to their
recent email with a copy of my original detailed correspondence from around 14 days ago.
This time, I received a prompt response with an overview below:
RE: ...........com -- "ACTION REQUIRED"
They thanked me for my cooperation and assured me that they are currently looking into it.
And stated they will respond as soon as possible.
Around 14 days later, I received their response. An overview is below:
They followed up, stating they were reaching back with an update regarding my case.
Their update stated there was no valid sale for the domain, so they would be returning it to me.
They instructed me to use the provided authorization code to initiate the transfer back to me.
They refused to address my concerns, offering no response or clarity. Afternic has not clarified whether this issue
stems from an inherent flaw in their sales process or if they are taking steps to prevent it.
They also refused to comment on sending payment confirmations that the payout for the domain sale has
already been sent to the seller before verifying the buyer’s funds, or on the Limited Warranty for Domain Sales.
What is the intended purpose of the Limited Warranty for Domain Sales within the Membership Agreement,
beyond its role in determining whether a domain sale qualifies as a Completed Sale and, if so,
guaranteeing payment by Afternic under the terms of the Limited Warranty for Domain Sales.
Does this Limited Warranty For Domain Sales serve any other roles or functions within the
Membership Agreement that aren't explicitly stated.
This is my story as it has unfolded at this stage, and I felt it was important to share it with all of you. I sincerely
wish everyone continued success and growth in the industry as we move forward together.
