Report endusers backing out of committed deal! - Version 2.0

[MapleDots]

There is the original topic
https://www.namepros.com/threads/report-endusers-backing-out-of-committed-deal.1115416/

Closed by the Mods on namepros for obvious privacy reasons.

Without disclosing any personal details of anyone lets discuss the topic itself and get some feedback from current members.

 

[Recons.Com]

I accept all the buyer cancellations that did not result in me losing another potential sale with no problem.

I understand that a buyer can have a remorse, change of circumstances etc. I don't consider a deal done until I have the payment, basically. For me it is just another stats (xx% of deals will not close).

 

[vast]

I think it all depends on the intention and awareness of the other side.

An occasional end user may not understand the deal terms and consequences in their complete entireness the same way as the experienced domain investor does. He is likely to deal with domain name buying for the first time, so the acquisition process and his liability may seem somewhat abstract to him.

A domain investor is typically aware of the rules and the public perception. So when knowingly breaking the deal contract, he might be reported to warn others regarding his unacceptable practices. I would personally exclude the case though when the owner forgets to remove the BIN marketplace listing - we are all human beings making errors from time to time.

At the same time, I think that reporting a one-time buyer from the outsides of the domaining industry makes no sense and looks more like a revenge.

 

[Windoms]

Say No to wanking.

 

[vast]

Say No to wanking.

Hm, any progress so far?

 

[vast]

Sorry, JK

 

[rlm]

I don't think you should ever flog someone for backing out of a deal unless it was malicious or a pattern of abuse.

But one question that really should have been asked was, what level of "deal" are we talking about? An email saying "yeah I'll buy it" or a escrow.com transaction where the buyer never paid, or a written contract signed and counter-signed?

I've had multiple deals fall through that were agreed to in principle but never after a fully counter-signed agreement. I had Quicken Loans agree to buy a domain for mid 5-figures, had me initiate the escrow.com transaction, but they never paid... The broker working the deal apologized profusely and said that his client ghosted him too (which I knew was Quicken). I knew the president at escrow dot com and he said yeah, happens all the time, nothing they can do. Until money has been received by escrow.com, any transaction can be backed out of with no recourse. It sucked, but, a few months later I sold the domain for more, so it worked out fine for me.

Right now I have a 6-figure deal that is agreed to by email and I sent them a domain agreement for their lawyers to review. Then they went dark for a couple weeks. They finally got back to me saying they still want to complete the purchase but the people they needed signatures from were sick... I'm still waiting, I hope it goes through, but unfortunately for now there's not much I can do. I do fear that their lawyers may find some TM conflict in another country because it is a highly trademarked generic term. So if it falls through, it sucks but that's life.

So, unless you have a fully counter-signed agreement, ya got nothing. And even then, you don't have much. If you really want leverage, an option is to get a non-refundable deposit up front to hold the domain while you're going through the process of closing the deal. I've got another 6-fig deal on the line where the buyer says I'll take it, never even questioned my price, but they just don't have the cash for a few more months until their funding comes in. Obviously this one has a high potential to fall through. I'm definitely going to work the deposit angle on this one - at least I'll get something out of it for my efforts...

 

[ResoluteDomains]

Maybe some will disagree but I think we should. Maybe not here on NP but we should start one somewhere... Perhaps a dedicated website where the information can be vetted. The claim must be valid and must be vetted. The claim must be able to be rebutted by the end-user, and retracted if the end-user is shamed back into fulfilling the contract to its end. A name/shame site would level the playing ground more than it currently is.

Peoples names, company names, titles, phone numbers, email address, website address should be made public record. Why on Earth not?

I have had CEOs of very large companies flat out back right out of legally binding agreements to purchase my names. Why do they get a pass? Because I do not have the money to go after them - thats why. AND because there is no mechanism to shame them so that their peers and, more importantly their vendors, customers, etc, can see what type of person they're about to deal with. I am dead sure that these same people would hunt me down using all legal avenues available to them, if I were to breach a contract with them! I've had people who have the title of Director of Operations, Vice President, Sales Director and more also breech contracts with me over nearly 20 years of me selling names. It sucks.

With one end-user it was a pattern of agreements to purchase then abusive responses and ignoring and changing the terms and then lies about someone making the offer that shouldnt. I even had people at Undeveloped tell me this was one of the most difficult people they've dealt with. There is no reason for this.

Do not confuse this with tire-kickers. If I had a dime for every tire-kicker I'd be retired already. Tire-kickers email you and ask you "how much?" Then they likely never come back. Some may even haggle for a while but then go away. That is perfectly OK. Thats an open door and its a non-commitment. I am not even talking about those who email you and ask "how much" and you both eventually come to an agreement via email or phone or letter - but then they go cold before they pay escrow. I've had them too but I do not have a legally binding contract with them like those who place bonafide offers through Sedo, Undeveloped, Afternic (the old Afternic) and other venues.. Yes, those agreed via email, phone, snail mail, handshake are also "contracts" but I do not provide those folks with a legal agreement like, say, Undeveloped does. Maybe I should - but I'd still have the problem we're talking about here: non-payers.

Look, a lot of us leave reviews on Yelp. Some of these reviews are negative/bad reviews. The establishment that is getting the negative review is getting "publicly flogged". Why is that OK but its not in our industry? The physical real estate industry has a mechanism to help prevent this sort of thing which our industry doesnt seem to want to adopt: earnest money. I can not make an offer on a house unless I plop down 10% or some fixed amount. 14 years ago someone agreed to purchase my home. They paid $3,000 earnest money. My house went off the market for a week. The buyer backed out. My agent came over with the $3,000 check and apologized. I asked what that was (I had no idea - my first home and my first sale). She said that its earnest money that is collected for this very purpose. If the buyer went through with the deal the $3,000 would be absorbed into their payment, but in that case she was handing it to me for my "loss" of not having the house on the market for 7 days.

Something like that is needed in domain sales. If its not feasible with domain sales then perhaps some version of it. Or, maybe we should start using Yelp and other available avenues to leave bad reviews just like we would if we had received bad service from that company (which we did!). There is no shame on doing this other than the person who breached the contract.

 

[wot]

I have named and shamed a number "buyers" over the years, I have no hesitation in doing so.

I do however tell them what I am going to do and where I will be posting and give them the opportunity to give me good reason why I should not do it. And no, not once did I get a response.

 

[iAchilles]

I do however tell them what I am going to do and where I will be posting and give them the opportunity to give me good reason why I should not do it. And no, not once did I get a response.

People generally don't respond well to threats, so that's not surprising.

I've had deals close after 6 months of radio silence, many times I came close to sending a strongly worded email. Based on this experience I like to leave the door open, even if it appears to be a dead end.

You have 0% chance of a closing a deal that you kill with words.

 

[wot]

People generally don't respond well to threats, so that's not surprising.

I've had deals close after 6 months of radio silence, many times I came close to sending a strongly worded email. Based on this experience I like to leave the door open, even if it appears to be a dead end.

You have 0% chance of a closing a deal that you kill with words.

I have sold more than 1000 domain names so perhaps I am doing something right.

 

[ResoluteDomains]

People generally don't respond well to threats, so that's not surprising.

I've had deals close after 6 months of radio silence, many times I came close to sending a strongly worded email. Based on this experience I like to leave the door open, even if it appears to be a dead end.

You have 0% chance of a closing a deal that you kill with words.

You do have a point - I have closed deals after much time of silence as well. That is why this issue is difficult to discuss and resolve. Perhaps there is no solution or its up to the individual domain investor. @wot has sold over 1000 domains. I've sold quite a number myself, not 1000, BUT, I have sold domains and transferred them after getting paid within minutes as well as months. There are only a couple-few who have harassed me to the point where I would want to report them somehow, however. Ugh. Thanks for your reply - its perspective on this issue..

 

[ResoluteDomains]

I have named and shamed a number "buyers" over the years, I have no hesitation in doing so.

I do however tell them what I am going to do and where I will be posting and give them the opportunity to give me good reason why I should not do it. And no, not once did I get a response.

I do think giving people time and then full-disclosure notice is good. Its complete transparency and it gives them the ability to rebutt before anything is posted.

 

[iAchilles]

I have sold more than 1000 domain names so perhaps I am doing something right.

I'm not questioning your experience. How you deal with non-payers is your business. I'm just sharing my thoughts on the matter. For me it's counter intuitive to send a threatening email if the desired effect is to get the deal over the line. Like I said, people generally don't respond well to threats and that's down to human nature.

 

[wot]

I'm not questioning your experience. How you deal with non-payers is your business. I'm just sharing my thoughts on the matter. For me it's counter intuitive to send a threatening email if the desired effect is to get the deal over the line. Like I said, people generally don't respond well to threats and that's down to human nature.

The "deals" are those where price has been negotiated and agreed, invariably at Sedo where "buyers" are contractually obliged and then not completed and no way in this world are they coming back to do a deal again. I do not a problem warning others of these type of people, and as I said it is not as if they are not given a chance to explain before name and shame is actioned.

 

[infosec3]

I would say in my case 2 or 3 out of 10 end-users back out of deals after promising to buy. Yes, it is frustrating, but I don't think any body should be exposed for this. I just move on to the next potential buyer.

 

[Wonderful]

I understand we sellers maybe upset whenever it happens, however, IMHO doing so may do more harm to the industry - we can handle it professionally and take a long-term perspective, it'll be better for all of us. All the best in 2019.