GoDaddy Auction Seller Backing Out

[clarkemarketing]

Anyone ever won a GD auction just to have the seller claim they no longer own the domain? I won BlockchainLegal.com BlockchainTrust.com and BlockchainStack.com on GoDaddy a few weeks ago, paid, and then had the seller contact me to see if I received the domains yet (which I had not). I noticed that one of the domains was developed in the meantime, and wouldn't you know it today the seller contacts me to say he made a mistake and no longer owns all 3 of them. They are all still registered at GoDaddy btw (doesn't GD verify ownership of domains that are being auctioned?). Seems to me like I was "freerolled"... auction a name on GoDaddy, if it goes for a high amount sell it, if it doesn't just claim you no longer own the domain. Anyone have any thoughts on this? I've got to be one of the biggest buyers on GoDaddy auctions lately and other than never buying on that platform again I'm not sure what recourse I really have? I know people make mistakes, and I have overlooked such situations many times before, but this involves multiple names that quite frankly sold for significantly less than I was expecting to pay and now the seller is clearly trying to back out.

 

[wwwweb]

Everytime I get the same answer:

Our initial investigation shows that we do not host or provide any mail services to xxxxxxxxxx.comm. We are the registrar only for this domain name. As a result of the limited services we provide this domain, our abilities to immediately stop the unsolicited email can also be limited.

The first right to action, as determined by the services they provide, is with the hosting provider and/or its related ISP. We advise you, if you have not already done so, to please submit a complaint to the hosting/email providers as well.


* well if they suspend the domain, they can stop the spamming.

 

[Name Trader]

Okay, I misunderstood your initial comment. Apologies for that. But this would also be problematic in cases where the domain changes accounts but the whois does not change (which it should not for changes in account owned by the same entitiy/owner. AFAIK, you are allowed to have more than one account at GD).

I'd have to bow to a higher authority than me about that @Joe Styler. But this could be handled by a secondary check on the account contact info against the GoDaddy Auctions whois info. And if they are identical then to keep the GoDaddy listing. But how many times does a customer push a domain with the exact same contact information to another account with exactly the same account contact info? What would be the point? I'd still go for the single rule, if the domain lands into any GoDaddy Account, then all previous Auction Listings should be deleted. I'm a simple man

 

[Name Trader]

Everytime I get the same answer:

Our initial investigation shows that we do not host or provide any mail services to xxxxxxxxxx.comm. We are the registrar only for this domain name. As a result of the limited services we provide this domain, our abilities to immediately stop the unsolicited email can also be limited.

The first right to action, as determined by the services they provide, is with the hosting provider and/or its related ISP. We advise you, if you have not already done so, to please submit a complaint to the hosting/email providers as well.


* well if they suspend the domain, they can stop the spamming.

But is that their job to determine? I think it rightly belongs to the email provider (usually the same as the hosting provider, in most cases).

 

[wwwweb]

To be fair there is no way you would know any of this unless the person specifically said, "Hi I am ****** I see your name on GoDaddy, want to sell it privately?" And that person contacts you.

I am sure there are plenty of emails sent to owners where the name is also listed at GoDaddy but the person never checked GoDaddy. Without someone putting that qualifier in there that they found you on GoDaddy there is no way to prove anything or ban anyone.

A very famous domainer named after a magician did this for years, and amassed an amazing portfolio doing this. It has been rumoured some of the most successful domainers employed offshore data centres to poach these auctions as well, so godaddy cutting the redemption window really helped some of their clients who spent hours bidding, and weeks with funds locked up when they closed the redemption window, I could see how they get ticked off by this as it is a major revenue center for them. Some of the biggest sales come via deceased sales, lately we have seen people reach out, and rescue some of these big names. Some poeple specialize in this, as often times the family has no need for such names, and they end up getting the sales contact on a trust factor , and a big commission on a quick sale.

 

[UncleBrand]

sadly it only happen when you get a great deal for a good domain
recently was excited about a 3 chars .net that went under the radar for less than 100$
and was refunded with no explanation than the usual automated emails
the domain never changed ownership

so we just have to move on, as we can't do much about these cases
that's part of the auction game

 

[equity78]

A very famous domainer named after a magician did this for years, and amassed an amazing portfolio doing this. It has been rumoured some of the most successful domainers employed offshore data centres to poach these auctions as well, so godaddy cutting the redemption window really helped some of their clients who spent hours bidding, and weeks with funds locked up when they closed the redemption window, I could see how they get ticked off by this as it is a major revenue center for them. Some of the biggest sales come via deceased sales, lately we have seen people reach out, and rescue some of these big names. Some poeple specialize in this, as often times the family has no need for such names, and they end up getting the sales contact on a trust factor , and a big commission on a quick sale.

Yes Merlin had a lot of success with the strategy. There is no way to stop it, you just run a separate business for that, that has no name tie to your account at GoDaddy.

 

[dr manos]

When adding names at TDNAM , their system sends a verification link to admin email, so at that time owner is the correct one.
Over the years people (including me), sell some names at other venues, drop some (and taken by others) etc, but still remain listed at TDNAM.
Of course in "make offer" mode there is no problem, just removing the name.
At buy now and especially if buyer pays right away, of course there is a case.
That's why is very risky to put BIN for same name at 2 or more venues.

As Mr Styler is following the discussion here, i am dropping some notes, maybe over the years will find solutions

1) If a name is already listed (by a previous owner) at TDNAM and we are trying to list it as current owners, the red error message "already listed" appears and can not add it. It is a factor that explains that many names at TDNAM are at wrong auction accounts. Never could understand why if someone is trying to add a name to not make a new ownership link so name will be listed at the new auction account.

2) Last 2 years comparing to previous years there are many cases where buyers do not pay.It seems penalty is to close buyer's auction account. So it is actually a $4 penalty right? Can open a new one in a minute.

Ok stopping here, have many other, let's start with the above
thanks @Joe Styler

 

[Displays]

A sale is a sale when domainer offers a domains, they have to respect deal.

I know the haunting feeling, it's insulting to all respectable domainers, when a seller backs-out of a deal.

 

[Joe Styler]

Whois shows it was created in 2014, and the same owner owns it since.

You know that she passed away so she could not still own the domain. I am not willing to comment on customer's private account info and who owns what domains other than what is in the public record. Both I and the support department have stated the current owner is not the person who listed the domain for sale. That is all I can say without revealing non public information which is against GoDaddy policy.

 

[Joe Styler]

To be fair there is no way you would know any of this unless the person specifically said, "Hi I am ****** I see your name on GoDaddy, want to sell it privately?" And that person contacts you.

I am sure there are plenty of emails sent to owners where the name is also listed at GoDaddy but the person never checked GoDaddy. Without someone putting that qualifier in there that they found you on GoDaddy there is no way to prove anything or ban anyone.

That is correct. We do not ban many people in general. Most transactions happen very smoothly. It is only an even smaller percentage of people who are banned for circumventing the auctions. We need some pretty clear evidence for that. Strangely enough people tend to brag or threaten us saying I did this, and that would be the normal case for banning someone - where there is clear evidence - they said it. We are not the Internet police and do not actively look for conspiracies and ways to ban people.
My point was very narrow in it's focus so lets not lose sight of the context of my comment. It appeared to me that what was suggested was actively looking for domains on our auction and then using that information to approach the buyer outside the auctions with the sole intent of cutting us out. That is a dangerous game and I do not think it is something to advocate.
That being said there are many marketplaces, emails, landing pages etc out there to sell domains. We don't care if you sell a name listed with us in another way or buy a name listed on our marketplace in another way that happens many times a day and it is perfectly fine. We do not have an exclusivity agreement we make you sign to list names on the marketplace. We do care though if you are telling people to use our marketplace to find domains and then contact people directly to cut us out.

 

[Joe Styler]

@anantj @stub I'm pretty sure listing a domain that is on GD Auctions on sedo or another marketplace is against there TOS.

You can list anywhere you want and sell anywhere you want with us.

 

[Joe Styler]

@Joe Styler : On various occasions I received solicitations from various parties to purchase domains which:

- I sold some time ago

- Buyer received the domain name into their GD/Tucows/123reg account (or transferred it in)

- Buyer did not renew, so it was included into GD expiring auctions lists, which are deeply analysed by various parties

- Whois is either private OR "Go Daddy Redemption Services" so they can only look into historical whois and find... my email /among others in some cases/, as I indeed owned the domain in question some time ago.

These spammers are sending me emails as the result of analysing godaddys expiring auctions lists. They ask me to renew and sell it to them. Of course they are spamming outdated email - I do not own the domain(s) anymore, they were sold.

In some cases, emails were coming for domains with bids (not yet finished auctions), in other cases the domains were already listed but did not yet receive bids.

I beleive it is an exact case of what you called "circumventing the Services". Should I report such spam, and, if so, how / to what department?

you can email [email protected] and they can look into it.

 

[MapleDots]

It appeared to me that what was suggested was actively looking for domains on our auction and then using that information to approach the buyer outside the auctions with the sole intent of cutting us out. That is a dangerous game and I do not think it is something to advocate.

Dangerous for who?
Definitely not dangerous to the guy saving the 20%

I'm ok with using godaddy to acquire smaller value domains but like I am seriously going to leave 20% on the table with 10-25k acquisitions?

The 20% can make the difference in acquiring big ticket domains or not being able to make a deal.

Could it be that maybe...... just maybe..... the fee at godaddy is a bit too high?

 

[equity78]

You know that she passed away so she could not still own the domain. I am not willing to comment on customer's private account info and who owns what domains other than what is in the public record. Both I and the support department have stated the current owner is not the person who listed the domain for sale. That is all I can say without revealing non public information which is against GoDaddy policy.

Yes Joe, I thought it would be her estate.

 

[dr manos]

Dangerous for who?
,able to make a deal.

Could it be that maybe...... just maybe..... the fee at godaddy is a bit too high?

Imo 20% is way too high comparing to other venues where name can be pushed same day of sale and not forced to transfer to godaddy and after 20% fee waiting 20 days to receive the funds.
On the other hand it seems TDNAM has very big exposure for names listed comparing to others.

 

[BrandBoogie]

This happened to me. I had listed a lot of domains on GoDaddy when I first started out and then forgot all about them. Last month GoDaddy suspended me from their auction site because I guess one of the auctions I had listed last year had sold and I no longer had the domain. I had sold it like 6 months ago on Flippa. I explained the situation and they said it was up to me to delete the domain and that's why they suspended me. So, yes it was an honest mistake. What I can't believe is that I was spending around $300 a day buying expiring domains on their auction site and now I guess I have to look elsewhere.

 

[Name Trader]

We do not have an exclusivity agreement we make you sign to list names on the marketplace.

I wonder how much longer before that is implemented? <j>

 

[Michael Ehrhardt]

If I put domains to auction I have to verify

 

[Mr. Websites]

Normally yes unless we are at fault or something technical caused an error there is action taken against the seller.

As per this thread, I can confirm no action is taken against the seller. A domain where the seller accepted an offer, then backed out from the sale, is still listed on Afternic/GoDaddy. We have already contacted GoDaddy's legal team for information about the seller for our counsel, but have yet to hear back.

Definitely doesn't make sense going through Afternic/GoDaddy for any transactions. They don't bother enforcing the terms, so sellers are free to renegade without any consequences. From @Joe Styler's comments above, GoDaddy doesn't want you contacting the seller directly - yet are unable to enforce the integrity of deals made on their platform.

@Joe Styler: It's pretty laughable to threaten buyers when GoDaddy is totally useless in enforcing its terms, or the deals made on its platform.

 

[Joe Styler]

If you already contacted our legal team with your attorney I am sure soon enough you will have the information you need. Any number of things could be happening here. We take things seriously if either the buyer fails to pay or the seller fails to deliver a domain.

 

[Mr. Websites]

Any number of things could be happening here. We take things seriously if either the buyer fails to pay or the seller fails to deliver a domain.

@Joe Styler: You can give wishy-washy responses, but there aren't a "number of things".

It's pretty clear cut:

1. Seller accepted an offer (which obviously met their reserve and "minimum offer" to do so)
2. Transaction was approved, legally-binding the seller to transfer within 10 days (as per GoDaddy's own ToS)
3. GoDaddy claims seller accepted by mistake, and nonchalantly suggests paying 10x more
4. Domain is still listed on Afternic/GoDaddy at a higher price

Just so you don't feel I am hiding behind a keyboard, the case number is 01997886 to support all of the above.

Which implies:

1. GoDaddy doesn't care about enforcing its ToS
2. Your threats about pursuing buyers is laughable, because again, GoDaddy doesn't enforce its ToS
3. Afternic/GoDaddy is not a credible marketplace to perform transactions