SnapNames will increase prices for deleting domain names

[imadam]

SnapNames will increase its prices for deleting domain names from $59 to $69 starting today .However ,SnapNames will increase the fee only for domain names that are deleted by the registry . Even though SnapNames didn't provided a reason for this price increase,they sent an email explaining how this process will work .

Here is the email sent by SnapNames :
"On February 15, SnapNames will raise the starting bid for backorders for all deleting domain names from $59 to $69. This starting bid increase applies only to orders for names that are deleted from their respective registries (not the expiring or privately held names listed from registrar partners or sellers).
This change applies exclusively to new orders any previously placed deleting domain name backorders will be grandfathered in and remain at a starting bid amount of $59; thus, $59 will be the opening bid if the name enters our system. (Note, if you are the only bidder in this scenario, like today you will be the buyer at $59. If another party backorders the same name after February 15, that party’s opening bid will be at $69 and the system will alert you to raise your bid if you so elect.)
As is the case today, all non-deleting domain names will enter our system at the starting bid price specified by the listing party. Opening bids for those names will stay at the amounts originally set.
There is no change to auction procedures. If there is only one bidder for a name at the time of its availability, the name will be awarded to that bidder. For names with more than one interested party, the names will go to auction and the highest bid at or above the starting bid amount will prevail.

Sourced from: Domain News

 

[Erdy]

They have used an awful lot of sentences just to say pending delete backorder price will increase from 59 to 69 USD. Snapnames is aligning their pending delete backorder price with namejet.

At the moment out of every 100 backordered pending delete domain that has backorders on multiple sites, 60 are caught by snapnames and 30 by namejet. The remaining 10 percent is shared between pool, intrustdomains and private dropcatchers. Even though snapnames was $10 cheaper and twice as successful than namejet they were getting less backorders. Many times I have seen multiple backorders on namejet and none at snapnames for the same pending delete domain.

Most people simply don't bother trying to understand how this thing works. They just go straight to namejet, place a backorder, end up paying $69 for a low competition domain instead $59 that they would have paid at snapnames. Obviously with low competition domains namejet is going to be enough. With this move, snapnames is simply saying, "If customers are stupid, we will go along with them".

I think that's the wrong move. There are a ton of domains that are not too valuable but need to be caught. They have the same $69 USD price tag for all extensions as if all extensions are the same value. Many dropping .net, .org, .info domains are not so valuable.

Another issue is the registrars that snapnames is partnering with to catch the drops. I think snapnames has started to feel pressure from competition. Maybe they don't want to lose the registrars they work with.

 

[HeyNow]

Snapnames also has the reputation of being the largest domain auction fraudster in history. They blamed thousands of fixed auction bids on a single employee. Obviously, their credibility suffered bigtime. That's part of the equation here. Massive auction fraud occured under the Snapnames brand, and now they are hopefully paying a price.

 

[Dave_Z]

and now they are hopefully paying a price.

Not just hopefully. They did with all the flak they got after halvarez.

It so happens some people still use them, albeit grudgingly.

 

[HeyNow]

It so happens some people still use them, albeit grudgingly.

Yes. Some people grudgingly use them. Others know little or nothing about the major Snapnames scandal in which Snapnames admitted to thousands of shill bids by at least one of their employees in thousands of auctions over a 4 or 5 year period. We'll probably never know the real extent of the fraud, or the real number of individuals involved.

Those who know little or nothing about the Snapnames fraud scandal might give Snapnames a chance because of the incestuous nature of the relationships between Snapnames, domain "news" journal(s), and other ethically-challenged auctioneers. In other words, those who report on the industry also tend to chase dropped names, and probably don't want to rub Snapnames the wrong way. It's a rogue's gallery of characters painting a rosey picture of a seedy business. One proven fact: Honest bidders have been screwed from the start. How silly to believe the industry has cleaned up its act without greater transparency.

 

[Erdy]

Their prices increased today. Yesterday I could backorder pending deletes at $59, today I paid $69.

I think one big problem with snapnames is that they cherry pick some domains for their private portfolio.

 

[MicroGuy]

Snapnames also has the reputation of being the largest domain auction fraudster in history.

This is true and the fact that they didn't realize that their only chance for survival was a complete name change+ tells me that management has their heads in the sand or up their own a$$es. :P

---------- Post added at 09:05 PM ---------- Previous post was at 09:03 PM ----------

I think one big problem with snapnames is that they cherry pick some domains for their private portfolio.

I just heard the sound of a hammer hitting a nail square on the head.