An important message from Snapnames

[FormerDnForumer]

Cam, your reply makes sense IF it was proven, it has NOT been proven and those over paid for names are now worth quite a bit less than the market value they held earlier. If the excuse is " vision " and end users that is yet to be proven.

I challenge any of them to provide a list of what they have bought of the drops and the realized roi, I would BET it is a loss. Apart fropm tm names and the odd end user sale a vast amjority would but them at a loss. Someone can have a brilliant vision or idea to start with but not all that follows is as brilliant.

Josh, I'm sure plenty of names grabbed on the drop end up in a net loss, but you're missing the larger point, which is that the drop services completely capitalize on the fact that domains have relative values, and it's experienced domainers, usually ones who breath each other's air, who are going to see the maximal potential for the domain. No doubt ego is a good part of it all as well.

However I know that when I started to see the holy grail of end user's values, it changed my mind completely about how I saw a domain's value and the silly formulas that pass for "value".

I've sold names to VA whose price tag I'll never likely see again, but whether it's a net for me and a loss for them is a completely open question, especially given their scale and development ambitions. It's just an open question what a domain name is worth. This is the reason shill bidding will always be part of the business.

 

[TheLegendaryJP]

Ok.. and that is why my portfolio padding theory is likely, they cannot possibly realize a majority are a net loss yet keep buying UNLESS the plan is not just end user ( couldnt possible sale enough to compensate ) but rather a sell out.

BD's, curious to know what their books say in regards to drop buys and end user sales. You can only buy so many hundred names at 100-300% over market and keep recouping cost, plus profit.

 

[DTalk]

Now how much is a domain worth when for each unique visitor, you don't see it as $2.00, but as $2000, with a conversion rate in the 10-20% range?

...But trust me, that once you dig deeper into that keywords true value up the ladder...

There are other reasons they pay more, lots of them, but there's just one.

In other words, true latent value.....Spot on.

...And, the successful domainers that can recognise the true potential value in certain domains - and have the vision, the business sense - and, the ability to find a way to mine the value of those domains - deserve every dollar they make, imo...


It was ever thus in all commercial activity. The talented prosper. The rest do just okay - or, go broke.


The Brady's of life lead all domainers - big & small - to pay more for a given domain than they may otherwise have paid. That's a bastard thing to do.


Having said that - and, to keep it in perspective - all the shill bidding in the world ain't going to stop the rest of us from making our fortunes from the domain business by seeing the true value in these assts....Or, building on the fortunes we already have.

.

 

[DomainsInc]

In other words, true latent value.....Spot on.

...And, the successful domainers that can recognise the true potential value in certain domains - and have the vision, the business sense - and, the ability to find a way to mine the value of those domains - deserve every dollar they make, imo...


.

So many parrot this credo yet the majority that do have not made much of anything and are still hoping for that one big sale that will make it all worthwhile. They want to believe this because if they didn't, it would all be a waste of time. Its only comes true for such a small fraction of people, regardless of talent.

 

[ilovedomains]

The undercurrent of hating on the big players that is creeping into this thread is both silly and toxic. It has nothing to do with the SnapNames scandal. People little and big got taken, simple as that. Let's not let paranoia and hating distract from the real culprits here.

Has something to do with the scandal.
Some people were wondering if big players are shill bidding or or if they are getting discounts because they can bid so high.

No one is hating players. Just saying there are some none sinister reasons they are able to bid so high.

Where its gets off track is when somone posts "you dont have a clue", they are just asking for a fight.

 

[Oversee Support]

All,

We're sending the following email to all SnapNames clients affected by the "halvarez" bidding:

Dear SnapNames Customer:


This e-mail is a follow-up to our communications on the situation regarding inappropriate bidding in SnapNames auctions by a former employee.

Update to Rebate Offer Acceptance Agreement

On November 6, 2009, via Rust Consulting, we provided a calculation of the impact of the inappropriate bidding activity on your account and a Rebate Offer Acceptance Agreement for you to sign and return at your discretion.

Several SnapNames customers expressed concerns about the agreement’s language. After considering these comments, we concluded that a section of the original agreement, addressing the scope of release of potential claims, could be interpreted as too broad and not what the company intended, and therefore should be clarified.

Accordingly, a revised copy (available for download here) states precisely that the agreement addresses only the SnapNames auctions in which there was bidding activity from the user name “halvarez.”

Customers who have already communicated their acceptance of the rebate do not need to take further action at this point—your rebate is already being processed for payment. However, if you prefer the revised language, you can print, sign and return the updated document. In that event, we will destroy the original acceptance agreement.

Should you have questions regarding the revised agreement, please contact Rust Communications at (888) 413-5338, or [email protected].

Calculation of rebate amounts

As discussed in the November 6 communication from Rust Consulting, to determine the rebate offer amount, SnapNames hired an independent, third-party forensic accounting firm to perform a review of these auctions and to calculate the rebate.

The firm reviewed data regarding all of the bidders in an affected auction, including the bids each bidder placed in the auction and the maximum bids the bidders indicated they were willing to place in the auction. From this data, the firm determined what the winning bid would have been had halvarez never placed a bid in the auction. This amount was then subtracted from the actual price paid for the domain name to determine the amount of the rebate for that auction.

Upon further review of this data, SnapNames has learned that for a small number of accounts, calculations failed to account for changes in our bidding system over time. In those cases, there will be a resulting upward adjustment of between $1 and $5 per auction. If you were affected, you do not need to take any action—you automatically will be paid the higher amount. If your payment has already been processed, you will be issued an additional check for the difference (or credit will be added to your SnapNames account, if you elected that option).

Additional options for sending your rebate acceptance

As detailed previously, if you elect to accept the rebate offer, you can execute and return the Rebate Offer Acceptance Agreement to:

SnapNames Rebate Administrator
P.O. Box 98
Minneapolis, MN 55440-0098

(If you so elect, you may ask Rust Consulting to print and mail you a copy of the forms with a self-addressed stamped envelope. Rust Consulting can be reached by telephone at (888) 413-5338 or by e-mail at [email protected].)

We have made additional options available for returning your agreement. If you prefer, you may:

• Fax your executed offer to (503) 200-1232
• E-mail a scanned copy of the executed offer to [email protected]


Again, thank you for your business, and your ongoing trust in SnapNames.

Sincerely,

Jeff Kupietzky
President and CEO

Craig Snyder
General Manager, SnapNames.com

 

[Devil Dog]

Denied

 

[dvdrip]

That says it all.
That is how Oversee is handling this.

This e-mail is a follow-up to our communications on the situation regarding inappropriate bidding in SnapNames auctions by a former employee.

 

[DN BROKER]

Denied

Agreed... they think they can just fool us with a rebate. I'm filing for criminal charges, Executives need to be hold liable for this FRAUD.

Their is no short cut about this fraud, you caused it and you must pay for it! Jail time is the only option I will agree! Former employee BULL SHIT - who do you people think your fooling? Kindergarten kids? Are you #(#(**#* serious?

 

[Theo]

Rob, is there an agreement between Oversee/Snapnames and Nelson Brady?

 

[DN BROKER]

Rob, is there an agreement between Oversee/Snapnames and Nelson Brady?

Let me answer that for them, YES - Pay Him Off and lets keep this quiet!

 

[Theo]

I don't want speculations and assumptions - I want an official statement from Snapnames regarding whether there has been an agreement or settlement between Oversee/Snapnames and Nelson Brady.

 

[FormerDnForumer]

Posted on another board. I love the faux sincerity and posted email (I want your comments! Sorry if I can't say a goddamned thing about it all!).

I guess he'll talk about last night's Knicks game, but that's about it. As predicted, the legal shield is up and acting as the catch-all, just like the posted email address

>>>

"I’m Jeff Kupietzky, CEO of Oversee.net. I want to address various comments on previous posts about a perceived lack of communication by SnapNames since the initial disclosure of this situation.

In fact, SnapNames and Oversee have been communicating directly with customers concerning this situation, and we have been talking with them daily. We’ll continue to make customers the first priority in our communications—our account managers, customer service personnel and managers are all available to discuss the situation. We have been following the thoughts raised in forums like these and appreciate the input we are receiving here and in our direct conversations.

There are of course aspects of this matter that are legal in nature that we can’t discuss. But to the extent we can, we’re happy to talk with customers, so please reach out to us. I can be reached at [email protected]."

 

[katherine]

That is a fair question, especially if Oversee won't deny or confirm they are filing criminal charges against Brady.

 

[Oversee Support]

Rob, is there an agreement between Oversee/Snapnames and Nelson Brady?

Hi Acro,

I'm sorry but I'm still not able to discuss anything that's an ongoing legal issue.

Rob
Oversee Support

 

[TheLegendaryJP]

Hi Acro,

I'm sorry but I'm still not able to discuss anything that's an ongoing legal issue.

Rob
Oversee Support

Legal issue between you and who, Nelson or the customers?

 

[fischermx]

Rob:

Why some people, like me, who truly was defrauded in this case, has not received the rebate offer?
And I also, emailed rustconsulting, and they just don't respond.

 

[stuff]

Rob:

Why some people, like me, who truly was defrauded in this case, has not received the rebate offer?
And I also, emailed rustconsulting, and they just don't respond.

well did you win against him?

 

[fischermx]

well did you win against him?

Oh God...... YES, of course, yes!!

I even already did my own math, and they owe me like $500. I thought they were emailing the big boys first... so I waited, but it has been two weeks now.

 

[DTalk]

When will Business Angels, Venture Capitalists, and Bankers, learn NOT to finance the acquisition ambitions of idiots....?!?


The management capability of the Oversee/Snap people looks to me to be totally out of its depth.


They appear to have NO concept of how to manage an organisation of integrity.....NO concept of how to manage a problem.....NO concept of how to manage market confidence.....NO concept of the value of substantial communication with customers & markets.


Snap/Oversee are reluctantly offering small concessions only after being dragged screaming & kicking to do it...


First, they finally released the records of affected auctions - so, people could check something as basic as the basis on which they would be rebated - ONLY after massive pressure from the community....Something that should have been volunteered immediately at the outset;


Now, they modify the Settlement Agreement ONLY after more furious complaints that the thing read like a licence to cop out on the widest - and, arguably including, an unrelated - set of possible future claims....A document that should never have been produced in its original form.


Meantime,


- They tell us NOTHING of substance about the core of the issue.

- NOR, (beyond rebates) what, if anything, they intend to DO about it.

- NOR, whether Oversee will press charges.

- NOR, what action(s) they are/have taken to give us confidence this will never happen again.

- Nor, their assessment of the ramifications of the impact (if any) on Oversee, itself - and Moniker et al.

...etc etc etc


This outfit is showing us that they are either massively incompetent - or, genuinely corrupt - or, they simply don't 'get it'....


Idiocy is clearly no bar to being able to borrow other people's money, to buy assets that other people have built.....and, run it so badly that it damages an industry.

.