Pheenix.com is Warehousing Their Customer’s Expired Domain Names

[Arca]

The domain name forexspot.com was dropcaught by Pheenix on September 26, 2016, and in the ensuing auction it was won by a Ukrainian domainer.

A year later the domain was still with Pheenix and let to expire. Similarly to many other registrars, like GoDaddy, DynaDot, Name.com, and NameSilo, Pheenix run in-house pre-release auctions for expired domains.

I recently won forexspot.com in the expired auction for this domain. However, Pheenix did not deliver and have informed me that they do not intend to deliver the domain to me. I was informed about this after the auction had completed and I was waiting to get the domain. So I thought the past owner might have renewed the domain.

But it turns out that Pheenix are warehousing the expired domains of their customers. I already knew that they have their own domain portfolio, but I was not aware that they are cherry-picking domains from their users expired domains. I think in this case they should have owed up to their "mistake" and delivered the domain to me, rather than still go ahead and warehouse it, as I won it in an auction run by them. But completing their own auctions and maintaining the integrity of their own platforms is apparently not important to them.

What is warehousing? From Wikipedia: Domain name warehousing is the practice of registrars obtaining control of expired domain names already under their management, with the intent to hold or “warehouse” names for their own use and/or profit.

Pheenix are now offering the domain for sale for $18,995. And that tagline? "second to none customer satisfaction"? I beg to differ.

 

[Doron Vermaat]

The owner is customer support, he wears many hats.

If that's the case he isn't very good at wearing the customer support hat.

 

[tonecas]

Enom used to had a similar problem as the transfer code would stop being valid, typically after the domain had been transferred to them previously. a new one had to be requested to their support.

They also had a very lame technic to delay or stop more naive clients from taking their domains away from them that was to generate ALL auth/epp codes with an "&" escape code in it so to give troubles in some web interfaces of other registrars that were badly programmed and would fail to read the auth/epp code correctly.

don't know if something similar is happening with Pheenix's registrars.

but on the core subject, it is very worrisome if Pheenix is warehousing domains that should belong to their clients. That would be a further step in the already too much conflict of interests between registrars businesses and their clients.

 

[wwwweb]

Pheenix is basically done...


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[offthehandle]

Imagine M&A people from another registry will be making a visit.

 

[wwwweb]

Imagine M&A people from another registry will be making a visit.

Doubtful, not much can be added to their existing business models, from what's left of the bones of this business now.

Usually you do it when times are good hence December 2015, this whole side of the business is kind of getting a second look, and some scrunity on how things are done.

Pheenix seems to be copying hugenames into the warehouse domains at bin, and payment plan pricing. Get 100-200 monthly payment plans active on a recurring basis, and that becomes a nice revenue stream, especially if you have a high default rate after x many months.

 

[offthehandle]

Get 100-200 monthly payment plans active on a recurring basis, and that becomes a nice revenue stream, especially if you have a high default rate after x many months.

Sounds like something all individual domainers should copy. The SEO is really the biggest barrier to entry to compete imo.

 

[wwwweb]

Sounds like something all individual domainers should copy. The SEO is really the biggest barrier to entry to compete imo.

I really think payment plans are the future, just to many consumers can't afford the one time upfront price.

Defaults are not a bad thing, I had a high 5 figure sale, that defaulted after paying $7k, no complaints from me.

 

[offthehandle]

I really think payment plans are the future, just to many consumers can't afford the one time upfront price.

Defaults are not a bad thing, I had a high 5 figure sale, that defaulted after paying $7k, no complaints from me.

Unless the company went belly up, with a pending default you could have lowered the payments and increased the term. And, you would have made more. No? Tax wise also you spread out the gain over a longer time period.

 

[Haris]

@gorilla_bob

It has been almost a week, reputation at stake. Any comments are welcome

 

[steitieh]

@gorilla_bob

It has been almost a week, reputation at stake. Any comments are welcome

Haris, is gorilla bob the owner for sure?

 

[Haris]

Haris, is gorilla bob the owner for sure?

I don't know about the owner but he is the staff member and I have seen him represent Pheenix at NP.

 

[creataweb]

ByeBye Pheenix. RIP.

 

[lotk]

Guys, can we transfer out of pheenix before the lock period? I believe NameBright used to allow that (not sure if they still do) ...

What's odd is that I have few domains in my account in Pheenix that I've already sold and they've been transferred out successfully - but they STILL show in my pheenix account, and i keep getting daily reminders to renew them although they're not mine!

Same here! Same email everyday even though I transferred the domain weeks ago.

 

[thedotsol]

I came over the Afternic's username "scalable", member there since January 2017 and has 16340 active listings.

https://www.afternic.com/listings/scalable

All domains with Pheenix landers and WHOIS.

 

[wwwweb]

Unless the company went belly up, with a pending default you could have lowered the payments and increased the term. And, you would have made more. No? Tax wise also you spread out the gain over a longer time period.

Company had a geo strategy and management, and board of directors were not on the same page.
Issue was they were trying to create a travel hub, and ended up going crazy in gtlds, even though the name was a .com, I'

I came over the Afternic's username "scalable", member there since January 2017 and has 16340 active listings.

https://www.afternic.com/listings/scalable

All domains with Pheenix landers and WHOIS.

Nice find, Arca's op domain forexspot.com is listed for $25,595, what a steal!

 

[tonecas]

Nice find, Arca's op domain forexspot.com is listed for $25,595, what a steal!

literally

 

[Name Trader]

Even the GD used to do it, though they stopped in 2008 (search for Standard Tactics, LLC. if you want to learn about their warehousing past).

I just found this thread. I haven't read this thread all the way thru before replying. But GoDaddy never did stop collecting/warehousing names. They use NameFind.com. They are even today picking up domains from GoDaddy's Auctions. I think that is a double standard, no no. At best. Even HugeDomains are not permitted to bid on the auctions at DropCatch.

 

[Arca]

I just found this thread. I haven't read this thread all the way thru before replying. But GoDaddy never did stop collecting/warehousing names. They use NameFind.com. They are even today picking up domains from GoDaddy's Auctions. I think that is a double standard, no no. At best. Even HugeDomains are not permitted to bid on the auctions at DropCatch.

I don't think NameFind is engaging in such activities.

@Joe Styler - Can you confirm or deny whether or not NameFind bids on expired domains at GoDaddy Auctions?

 

[Joe Styler]

We dont bid on any domains. We do take domains briefly from other companies to fulfill them to the buyer so you will see us on the WHOIS but we try and make it clear as possible on the WHOIS to say it is transferring.
So you bid on an expired domain from another company listed at GoDaddy auctions and win. They give the domain to us in a holding account, that updates the WHOIS to Namefind. We then push the domain to the buyer - you, which updates the WHOIS to you. There's several important reasons we have this set up this way but it is only for fulfillment purposes. We do not bid on domains or warehouse any domains that expire.
We acquire our domains by buying portfolios from other domain investors or companies.

 

[Name Trader]

We dont bid on any domains. We do take domains briefly from other companies to fulfill them to the buyer so you will see us on the WHOIS but we try and make it clear as possible on the WHOIS to say it is transferring.
So you bid on an expired domain from another company listed at GoDaddy auctions and win. They give the domain to us in a holding account, that updates the WHOIS to Namefind. We then push the domain to the buyer - you, which updates the WHOIS to you. There's several important reasons we have this set up this way but it is only for fulfillment purposes. We do not bid on domains or warehouse any domains that expire.
We acquire our domains by buying portfolios from other domain investors or companies.

Thanks for the clarification, Joe. Appreciated. It explains why I see NameFind in the whois after auctions have closed.