discuss Forum Based Domain Auctions - Are there any misdeeds there?

[MapleDots]

So I have a HYPOTHETICAL question, discuss rationally, no flaming please.

I open up an auction for xyxy.com and start of with explanation why this is such a good name and say BIN to be announced.

I go through the motions for a few days and members inevitably ask me for the BIN price. I say to be announced place a reasonable bid first.

Member: starts off at 1k

Seller: laughs

Member: 2k

Seller: do I hear 2k +

Member: 2.5k

Seller: lists comparable sales at up to 150k

Member: 4.5k

Seller: high bid is 4.5k any others?

Seller: bump

Seller: bump

Seller: bump

Seller: bump

Seller: Bin set at 10k

Seller: Have PM bid for 7.5k

Seller: 7.5K + anyone

Seller: bump

Seller: bump

Seller: bump

Seller: BIN reduced to 8k

Seller: bump

Seller: bump

Seller: bump

Seller: Auction Closed

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So here are my questions.....

We have a real bidder at 4.5k

We have a "so called" bidder" at 7.5k

On other platforms anyone having offered the 7.5k would have been a verified bidder.

We never get to see or hear anything about the high bidder at 7.5k, we just have to take the sellers word for it that there was one in the first place.

So lets just pretend he did not.

He then artificially inflated his high bid to 7.5k without any real evidence that there was ever such a bid.

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I don't think it changed MY outcome because I know what my max bid for the domain would be but it certainly leaves room for manipulating the system in undesirable ways.

This silent bidding on the auction behind the lines bothers me sometimes because I know of a couple of cases where I know I could call bullcrap on it.

I'm just always a bit leery, especially with new members when I see the "I got this offer via pm" in the auction. My opinion is proof is in the pudding, I may be coaxed into paying more but I want some assurance I am bidding against a live person and not a made up mystery PM bidder.

 

[wwwweb]

For the most part, if it is a big money name, ask the seller to get their PM bidder to post in thread, it's only fair, but this has been a long drawn out pet peeve for many.

 

[MapleDots]

ask the seller to get their PM bidder to post in thread

The question I have is...... should that be a requirement?

 

[wwwweb]

The question I have is...... should that be a requirement?

I used to see this alot with 3L.com's all the time, it was annoying. Because anytime you place a bid you are bidding against a ghost bidder, basically take it with a grain of salt. I always thought it was funny, it wasn't, when you are talking hundreds, if not thousands, it's almost foolish to participate in such an auction. I am sure many have paid for it, simple enough rule to bid in thread.

 

[Eric Lyon]

Hello,

That is not allowed in auctions on NamePros:

• Rule 6.2.7. Bids must be made publicly in the thread, but offers relating to active auctions should be sent via direct message. Learn the difference between bids and offers.
  Note: Offers have no bearing on auctions, only bids do. Offers are sometimes used to decide on public BIN prices of the auction.
• Rule 6.2.10. Auction holders (sellers) must sell to the highest bidder with a valid bid at the end of the auction or to the first buyer to accept a valid Buy-It-Now ("BIN") price before the auction ends.

The only time a scenario similar to what you've described could occur here is if it is a Make Offer listing (not an auction), and there's really nothing that can be done about that, because they could receive offers by email or anywhere else (no one can know if it's true except the seller). You just have to know what you're willing to pay and ignore anything else that is said about offers you can't confirm.

That's the same way negotiations work using email, verbal communication, etc. and that's how they work on NamePros too.

Hope that helps,

 

[MapleDots]

Thank you Eric,

I will assume that your response is based on the fact that all members know the difference between an offer and a bid. Sometimes that line does get mangled a bit.

But lets assume we are talking about offers only then...

If I offer $100 next one $200 then we are told high offer is $1,500 via pm then we are expected to take the person making the claim at his word.

I understand he can decline all offers but since we are offering out in public should we not be told member @person1 offered $1,500 via pm is anyone interested at higher?

I know there are auctions and offers but even the offers need some sense of accountability don't they?

In closing, I could have sworn I have seen similar at auction, I will have to watch for it and notify you the next time I see it. You have me doubting it now so don't hold me to it but I will definitely be more aware of that now.

I guess it just kind of sits wrong with me when I know for sure some of these so called offers are just made up. I know I shook my head once when I saw a domain sell cheaper than what someone had supposedly offered via pm a month before.

It's always curious when I see... I got an offer for 2k via pm, and then it sells a month later at 1k.....
hmmm... nothing wrong there right?

 

[Eric Lyon]

It is a tactic some people use in negotiations, and it's not specific to domain forums. It's something that happens in negotiations everywhere, regardless of the website or medium: email, PM, DM, Facebook, phone call, in person, etc.

As the buyer, you can either ask them to prove it or ignore it. Sometimes you'll be right, and they were bluffing. Sometimes you'll be wrong and lose the sale. This is all typical in business negotiations for any asset.

It can't be stopped on a website because as soon as you make a rule "all offers claimed on this website must be proven" they will just claim the offer came from a phone call, whois email, etc. (all easily faked), so a rule like that unfortunately doesn't work.

I agree it's not a respectable sales tactic and shouldn't be used. The best thing buyers can do is not do business with people they don't trust/believe. If you ask for proof and the seller refuses, then you can decide whether you want to do business with that person.

Hope that helps,