Sedo Needs To Do Something About Defaulting Domain Sellers

June 4, 2010 · 4 Comments  

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This has been an interesting week for Sedo sales, more exactly sales not being completed by the domain sellers. Three separate events have been brought to light this week two of them being new the other several months old. Outlined below are details of each:

1. Seven legal domains sold for $200K in early May 2010. The domain seller has defaulted on the deal and has refused to complete the sale. Sounds like legal action will be taken by the winners of the domains in this transaction.

2. A single .co.uk domain was sold for $110K and the buyer is claiming an error and is now backing out of the deal. The winning bidder starting taking legal action against the domain seller.

3. NBC agrees to sell two domains for $1 Million and has backed away from the deal stating it was being blocked by the President of NBC. A lawsuit was filed by the winning bidder in this transaction.

In the first two transactions the domain seller accepted an initial offer for the domain/s agreed again to Sedo’s TOS and pushed the domains to auction. Upon completion of the auction the domain sellers failed to transfer the domain name/s to the winning bidder. The third transaction was an offer made by the buyer which was accepted by the domain seller.

If Sedo has time to comment on issues such as their ethics about a $2,800 domain sale, certainly they can comment about three separate domain transactions involving a total of 10 domains being ’sold’ for more than $1.3 Million.

Thoughts?

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4 Responses to “Sedo Needs To Do Something About Defaulting Domain Sellers”

  1. brian k on June 4th, 2010 12:22 pm

    There needs to be an overhaul of auction sites in general.
    For instance there are many domains at auction on godaddy.
    The asking price is 100 dollars. When you bid 100 the owner responds with a counter of 1500.
    The whole thing is misleading and a giant waste of time.
    As far as i am concerned at the close of the auction i should be the winner.
    Thoughts?

  2. Product Domains on June 4th, 2010 1:52 pm

    Offer/Counter offer issues are one thing.

    This is a completely different issue. It’s domain sellers signing up at Sedo – agreeing to their TOS, listing domains for sale – agreeing to their TOS again, receiving bids on domains listed then pushing domains to auction – agreeing to their TOS again, and then not completing the transaction.

  3. Domain Name Reserve on June 6th, 2010 12:30 am

    Sedo should require earnest money on bids over $1K either in the form of a deposit or a withholding of parking revenues. About 20% of our auction sales fail due to buyer default there.

  4. Product Domains on June 7th, 2010 10:00 am

    That’s buyers defaulting (another issue all together) – not the domain seller. This is about the domain seller defaulting on a sales agreement and not transferring the domain name to the winning bidder when payment has been made.

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