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What if a domain in my NamePros Auction has sold elsewhere or may sell elsewhere?

Located in Frequently Asked Questions started by FAQ, Aug 5, 2016.

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  1. FAQ

    FAQ Frequently Asked Questions

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    Auction holders (sellers) must abide by the rules and deliver on the terms that they set for their auctions, without exception. Auction holders are allowed to choose most of their auctions' terms, within reason, until each auction receives a bid.

    Therefore:
    • Auction holders may set terms on their auctions to specify exactly what will happen if a domain sells elsewhere (on another marketplace by negotiation or Buy-It-Now, privately, etc., but not by auction). The terms must be reasonable, specific, and fair (e.g., the winner will receive $5,000 instead of the domain if it sells elsewhere).

    • If this scenario is not specified in the terms of an auction before its first bid, then the winner must receive the domain name, and the auction holder may not sell the domain name elsewhere.

    Important: Auctions must be exclusive to NamePros, which means that the domains within a NamePros Auction may not be auctioned elsewhere at the same time. Auction exclusivity prevents confusion, dilution, and many other potential issues.

    A section with examples of what is and is not allowed is included below.


    Detailed explanation

    The forum-based marketplace on NamePros is an open market that provides both buyers and sellers with the ability to trade freely within a framework of rules based around transparency, clarity, and fairness.

    Here are the most relevant parts from the rules that help answer this question:
    • 6.1.5. All valid sales agreements are binding.
    • 6.1.13. All details regarding a sales listing that are uncommon or outside of industry norms must be clearly defined and expressed.
    • 6.2.1. Auctions must be exclusive to NamePros until the winner is awarded the item(s) or the auction expires without a winner.
    • 6.2.3. An auction cannot be modified once a bid is placed [with only a few exceptions].
    • 6.2.10. Auction holders must sell to the highest bidder with a valid bid at the end of the auction.
    • 6.2.12. Auction details and terms created by sellers must be reasonable, transparent, specific, predictable, and sensible.
    Within this framework, there is a lot of freedom to add listings that are creative and only possible on a platform with this level of flexibility.

    As an open market, it is up to buyers to decide whether they want to participate in an auction given its terms. By participating in an auction, bidders are agreeing to its terms and indicating that the terms are favorable. Once an auction receives its first bid, the terms of the auction cannot be changed, and the auction holder must sell to the highest bidder once the auction concludes. If there is a lack of participation in an auction, then it may be an indication that the market does not approve of its terms. It's important for auction holders to keep all of this in mind when specifying terms and listen to the market to identify what works best and appeals to bidders.


    Examples

    Here are examples of terms that are allowed and disallowed (forbidden) in auctions on NamePros.


    Example 1 (allowed):
    If any domains in this auction sell elsewhere, then the winner of this auction will receive the end-user listing price minus the 30% commission fee and minus the $100 logo fee for each sold domain name. The end-user listing price for each domain name is: $1,500 for one.com, $5,300 for two.com, ..., $2,500 for eleven.com.
    • Explanation: This example is allowed because it is fair, specific, and transparent.

    Example 2 (allowed):
    The winner of this auction will receive 80% of the end-user purchase price if any of these domains sell elsewhere during this auction. The end-user purchase price is $1,950 for one.com and $2,350 for two.com if sold elsewhere.
    • Explanation: The value can easily be calculated or decided in each scenario, the replacement is reasonable, and specific.

    Example 3 (allowed):
    If one.com is sold elsewhere during this auction, the winner will receive $500 instead. If two.com is sold elsewhere during this auction, the winner will receive $300 instead.
    • Explanation: The exact value is specified, predictable, and transparent.

    Example 4 (allowed):
    If one.com is sold elsewhere, then the winner will receive ten.com instead. If two.com is sold elsewhere, then it will be substituted for eleven.com and eleven.com will be awarded to the winner.
    • Explanation: Transparent, specific, and predictable. Easy for buyers to bid with all possible scenarios in mind.

    Example 5 (forbidden):
    If a domain in this auction is sold elsewhere, it will be substituted for an equivalent domain name.
    • Explanation: This example is too vague. It is impossible for the bidders to know the value of what they're bidding on in the event this situation occurs.

    Example 6 (forbidden):
    Any domains that sell before the auction has ended will be removed.
    • Explanation: Unreasonable. Unfair. The value of the auction can be decreased at any time by removing domains. That would make the "auction" unpredictable and not an auction by any known definition.

    Example 7 (forbidden):
    In the rare event that this name sells elsewhere before the transaction is completed, this auction is null and void.
    • Explanation: Once an auction receives a valid bid, it must sell to the highest bidder once it ends. No exceptions.

    Example 8 (forbidden):

    I'll give some of the proceeds if I sell this domain to an end user during this auction.
    • Explanation: Obscure. Unpredictable. Does not specify how much will be given. Does not include the end-user asking price. The seller could offer anything, even $1, to the winner, which would be unreasonable and unfair to the winning bidder.
     
    The views expressed on this page by users and staff are their own, not those of NamePros.

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