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Afternic/GoDaddy Seller Backing Out

Located in Domain Marketplace Reviews, started by Mr. Websites, Dec 18, 2018

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563

  1. Mr. Websites

    Mr. Websites VIP Member VIP ★★★★★★★★★★

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    NamePros,

    Long time no see.

    On 12/15, I placed a fair offer on a domain that the seller accepted the next day.

    I made the payment immediately, and received confirmation on 12/17 that the transaction was approved. The email noted that the domain transfer would now initiate.

    Shortly thereafter, I received this email from a GoDaddy Account Executive:
    Seriously?!

    By this point, I had already purchased related domains to protect my new investment. Now they are asking for an amount not only in excess of the original BIN, but 10x the amount that was already accepted! As per GoDaddy's own policies, the seller must initiate the transfer within 10 days:
    Which then raises a few questions:
    1. Does GoDaddy take legal measures to enforce transactions as part of their 20% commission?
    2. If not, doesn't it defeat the integrity of the marketplace if sellers/buyers can back out at any time?
    3. Has anyone pursued something like this in court?

    I can't imagine a seller aggressively defending such an obvious breach of contract. Odds are, it would be a default judgment. Regardless, since the court would likely award any attorney fees as well, I don't see the harm in pursuing this route. I suppose this is what buyers have to do when GoDaddy doesn't care to enforce the integrity of their marketplace.

    For what it's worth, no action has been taken against the seller by GoDaddy, as I see the domain listed on both Afternic and GoDaddy under a new price.
     
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  2. Kate

    Kate Domainosaurus Rex VIP ★★★★★★★★★★

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    Is the domain name registered at GD ? I thought GD would just take the name and push it to you.
     
  3. Mr. Websites

    Mr. Websites VIP Member VIP ★★★★★★★★★★

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    Nope, it's with NameCheap.

    Most frustrating is probably GoDaddy's complacency in all this. Completely defeats the trust in their marketplace.
     
  4. MapleDots

    MapleDots Account Closed (Requested) VIP

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    It's not complacency, I can guarantee you GoDaddy want's to earn their commission with each and every sale but offering services when people are involved will always have a degree of uncertainty.

    Sure they can attempt to lock it in but that is hard to do when they do not have control of the domain. They also will not fight your battles because it happens many times and the legal costs of fighting each one would be astronomical.

    So really as the purchaser the only real option you have is to pursue the seller personally and to mount a legal challenge. If you win you can always ask for legal fees but it would be quite a process.

    Sometimes sending a single notice of intent to launch a legal challenge can change the sellers mind but you would have to make sure to get an actual letter from your lawyer, a home drafted version does not count for much.

    Now if the domain was really important to you and he want's 10 times more it might be worth your while to pursue.

    Good luck (y)
     
  5. Mr. Websites

    Mr. Websites VIP Member VIP ★★★★★★★★★★

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    They wouldn't have to fight many battles if they restored trust by legally pursuing the few bad actors. Right now, sellers are willing to renegade on their agreements because they know GoDaddy won't do anything. If there was precedence of GoDaddy taking breaches seriously, parties would think twice before they renegade - restoring trust in their own marketplace.

    Afternic/GoDaddy hasn't even removed the domain from their marketplace, so they obviously haven't penalized the seller at all. Pretty ridiculous!

    Would be happy to pursue this route. If anyone has done so, please feel free to reach out to me.

    An agreement should be set in stone. Just as if you back out of a house sale, there are repercussions - so should there be in this case. It would be difficult to transact if buyers and sellers could walk away without repercussions. Isn't it why we have breach of contract laws?

    Out of principle (and fairness), paying 10x more for a transaction that two parties agreed to on their own accord should be out of the question.
     
  6. karmaco

    karmaco Top Contributor VIP

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    The seller stated he misread the offer on that domain. Just playing devils advocate but since you didn’t correspond directly with the seller isn’t it hard to prove he didn’t just make a clerical mistake? It’s not like GoDaddy/ Afternic is going to help you prove it.

    I don’t know how important this domain was to you if you were paying XXX for it. Is there a suitable replacement? If so I’d just get that.

    I am not saying what was done was right but in digital land it’s kind of hard to prove something untoward when there is a buffer/go between company in the mix.

    A legal battle is going to cost more than you wanted to buy the domain for. I wouldn’t make a firm decision until the emotion was taken out of it and consulting an attorney.

    I know you said this about principles but you have to weigh everything.
     
  7. MapleDots

    MapleDots Account Closed (Requested) VIP

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    HeHe.... and a lot of people have lost a lot of money fighting "out of principle"

    I try to weigh my decisions on anything but principle because in a lot of cases principle and ego are the same thing. :xf.laugh: (not implying anything to OP's situation)
     
  8. creataweb

    creataweb Some Guy with Awesome Senior High School Photo VIP ★★★★★★★★★★

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    Sounds more like seller's remorse and not wanting to go thru with it, hence the "error"
     

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