Don't Count Your Chickens Before They Hatch, Especially in Domaining!

[vinsdomains.com]

Dont Count Your Chickens Before They Hatch. We’ve all heard the expression and it can apply too many things, especially domaining! I’d like to discuss three recent examples of why you don't count your chickens before they hatch, whether buying or selling, even if they have poked almost all the way through and you can actually see them. When it comes to domaining, until you have physical money in your pocket, a domain name is not sold, even if you sold it through one of the popular aftermarket platforms, like SEDO or Afternic, and the name is no longer in your account.
In the first example, it was me who was attempting to purchase some names through a popular aftermarket for previously owned domain names. I was pretty excited to have stumbled upon four premium domain names that were available through this platform that had not yet been back-ordered by anybody else. While I’m usually not in the sniping business, I really liked these names and knew I was getting a great deal if nobody else back-ordered the names. As such, I hung tight until the last minute and placed my back orders from a snipers position. The next day, as expected, I was pumped to have received four messages similar to this:
“Dear Customer:
Congratulations you successfully won a domain auction.
The next step is for ********** to add the name to the appropriate account for you to manage at the sponsoring registrar. This can take up to 7 days (slightly longer if the domain is a private sale and a transfer is in process). You will receive an email from the sponsoring registrar with login and account information at that time.
Below you will find a summary of the domains ordered for your account:
Type Amount Description / Status
=========================================================================================
Domain Name Sale $69.00 XXXXXX.com / Successful
TOTAL BILLED: $69.00 USD against your credit card
Thank you for using our domain name aftermarket services.
As this email is not monitored, please visit our support center if you have any questions or to contact us.
Sincerely,
Support”

Well, confirming that my credit card was dinged four times, I was pretty confident those names were going to be mine. Sure enough, the names hit my account and I proceeded to add them to my portfolio spreadsheet and website. Again, don't count your chickens before they hatch. After about a week, I received the following message:
“Hello,
We regret to inform you that a few domains you recently purchased through a pre-release auction has been cancelled by the registrar of record, as allowed by the Agreement. We are not provided with specific details and therefore do not have any further information to provide.
As a result of this Registrar request, we will be refunding the entire auction fee and removing the domains from your account within the next few days. Please be assured that this is a rare occurrence, and we do apologize for the inconvenience.
Domain: XXXXX.com
Order: XXXXXX Pending Reversal
Auction Fee Credit: $69
Domain: XXXXX.com
Order: XXXXXXX Pending Reversal
Auction Fee Credit: $69
Domain: XXXXXXXX.com
Order: XXXXXXX Pending Reversal
Auction Fee Credit: $69
Domain: XXXXXX.com
Order: XXXXXXX Pending Reversal
Auction Fee Credit: $69
If you need further details and explanation of the process, please see the Terms of Use
Should you have any questions or need technical support assistance, please visit our Support Center found under the HELP / Support Center link. Our staff is available 24 hours a day, seven days a week.
Thank you for your participation. We do appreciate your business with us.
Sincerely,
Technical Support
Wow, once they were in my account, I was pretty sure they were my names. Not so fast, as can be read. I was fully refunded and the names disappeared from my account without any assistance from me! Ouch!
My next two examples of Don't Count Your Chickens Before They Hatch, each have to do with the selling of domain names. My first example is really the most upsetting to me, only because it was a chunky $XXXX sale, for a name I picked up for $60, but again on a popular aftermarket selling platform. Doing some research, it was very apparent that I was dealing with an end user, who was operating a business using the same name. The following is the correspondence I received, after getting confirmation that payment had been received and I should await instruction regarding transferring the name:
“Based upon a review by our marketplace security team, we have felt it necessary to cancel this transaction and the related transfer/escrow services for the domain. Please be aware that marketplace integrity and security are of the highest value to us.
If you have already removed the transfer lock for the domain and provided the auth code / EPP code, kindly re-lock the domain immediately and modify the auth code, if possible. Thus the domain can no longer be transferred.
The suspension of the transfer in no way affects the Purchase & Sales Agreement between the seller and the buyer. We will place the transfer on hold for as long as is necessary for you to complete this transaction.
If you have any questions or concerns regarding the cancellation of this transaction, please submit an inquiry through our Customer Support Center. Under the Ask a Question section, select the following Area and Topic:
Area: Transfers & Escrow
Topic: Security
We apologize for any inconvenience and hope you understand the critical nature of our actions to ensure a safe and trusted exchange platform.
Sincerely,
Transfer & Escrow Department”
Boy, that really sucked. I was pretty confident that I had a nice sale that would finally appear on DNJournal, but no such luck. However, having received the potential buyer information, I am still trying to pursue this transaction outside of the platform.
Well, again last week I had the same thing happen, but through another platform, which prompted me to write this post and share my experiences. This one involved a nice three character name that I was selling. I first received this message:
“Dear Customer,
Congratulations, your domain name is sold! The member below met your asking or reserve price.
Domain Name: XXX.com
Final Price: $XXXX.00 USD
Buyer Username: XXXXXX
Please visit the escrow summary page for instructions on how to complete this transaction:
https://www.XXXXXX.com/
Please note: This forms a binding agreement between you and the buyer. You may not disclose the buyer’s personal information or use it except as needed to fulfill the transfer of this domain name. See our membership agreement and privacy policy for more information.
Thank you for using Us,
The Team”
Couple of days laterr, this message followed:
“Dear Customer,
This is an automated email from Us. There has been a change to the status of your escrow transaction for XXX.com.
The following step has been completed:
Step 2: XXXXXX’s payment has been approved. Please initiate the transfer of XXX.com.
We will contact you shortly with detailed transfer instructions.
You can visit the following page to review the escrow status and directions for next steps online: https://www.XXXXXX.com/
If you have any questions, please call or email the escrow manager.
Thank you for using Us.
The Team”
Once again, pretty excited, but still apprehensive in light of past experience. Don’t Count Your Chickens Before They Hatch. Ah yes, I’ve heard that before. Sure enough, I recently received the following correspondence, after I transferred the name and didn't see any $$$ hit my personal account:
“Hi Customer,
Unfortunately I do have some bad news. This domain has been flagged for fraud by the partner who purchased it. We are forced to cancel the sale and return the domain to you. I am working with our partner now to get this transferred back and I should have another update for you hopefully by tomorrow. I apologize for any inconvenience.
Best Regards,
Escrow Support Rep”
The obvious moral of the story is, Dont Count Your Chickens Before They Hatch, especially in domaining, and even if you have the name in your account or even if you’ve been told payment has been received. Surely, most experienced domainers already know this and have likely have already learned the same lessons that I have. As such, this post is geared towards Newbies like me, who can always learn something new!

 

[Biggie]

that sucks Vin!

 

[jaydub]

Yikes....seems if you didn't have bad luck you wouldn't have any luck at all!

Hopefully this is just a blip on the screen vin....keep on truckin"

 

[NameYourself]

Which site was it that your four purchases were reversed, namejet or snapnames?

 

[vinsdomains.com]

that sucks Vin!

No biggie, Biggie! You learn and move forward. Luckily I didn't flip the names or reinvest any $ before I had it. Here, I just want to keep folks on their toes, as I'm sure it could happen to anyone.

 

[vinsdomains.com]

Yikes....seems if you didn't have bad luck you wouldn't have any luck at all!

Hopefully this is just a blip on the screen vin....keep on truckin"

I blip indeed. Luckily, I've got a lot of good luck too. I'm also a long time Deadhead, so that's what I do, Keep Truckin!!!

 

[vinsdomains.com]

Which site was it that your four purchases were reversed, namejet or snapnames?

NJ - They were some real good names too. Perhaps too good to be true.

 

[CorrectName.Com]

But you've had some good sales to already correct?

 

[vinsdomains.com]

But you've had some good sales to already correct?

Oh yeah. Not complaining here! Had a great first year and doing even better first quarter this year already! Just tryin' to pass along what I learn and get my blog going! However, always something to learn and always can do better!

 

[vinsdomains.com]

Another four digit sale dies at the last minute, this time at DomainNameSales - Here's a couple of messages in the negotiation, including the one I woke up to this morning sent to my broker from the buyer, after agreeing to buy the name for a nice price and after the platform initiated an escrow transaction.

Subject: Re: XXXXXX.com
Hello Paul,

Your offer of $X,XXX.00 USD has been accepted and I've initiated an Escrow.com transaction.
Please log in, agree to terms and fund. The inspection period is set to one day, but doesn't begin until you have control of the domain.

Thanks very much and please let me know if you have any questions.

This mornings message:

XXXXXXX,
The marketing team found another URL that was considerably less and serves our needs well. I am going to have to pass for now.
I apologize for the inconvenience.
Best,
Paul
end

Yet another example of not counting your chickens before the hatch! Luckily, I also woke up to another SEDO offer this morning, although through their SedoMLS partner program, so they'll get 20%. I certainly can't complain, however, as this will be my 4th sale this week!

 

[Theo]

Name and shame the renegging time-waster.

 

[Biggie]

after agreeing to buy the name for a nice price and after the platform initiated an escrow transaction.


Yet another example of not counting your chickens before the hatch! Luckily, I also woke up to another SEDO offer this morning, although through their SedoMLS partner program, so they'll get 20%. I certainly can't complain, however, as this will be my 4th sale this week!

i see another example of how third party platforms only facilitate the arrangement, where domaners must recognize "that a domain is not/should not be considered as ...sold, until payment has actually been sent".

i'm glad you got offer at sedo, but they too act in same manner as facilitator

just saying that sometimes they get faulted for not holding potential buyer to agreement, when the vision i think should be focused on ability to arrange.


having names, that at least compel someone to make offers on, is a plus in inself.

keep on truckin' vin!

 

[Theo]

Sedo collects between 15% to 20% for providing the platform mostly. It's up to the seller and the buyer to facilitate the sale. When the seller isn't given enough information about the buyer, whose identity is hidden, there is a lot of money being left on the table. With the addition of TDNAM/SedoMLS, the credibility of Sedo offers led several domain investors, myself included, to move away from Sedo.

 

[Gerry]

confucius say, No count chickens before testing for chicken flu.

 

[Biggie]

Sedo collects between 15% to 20% for providing the platform mostly. It's up to the seller and the buyer to facilitate the sale. When the seller isn't given enough information about the buyer, whose identity is hidden, there is a lot of money being left on the table. With the addition of TDNAM/SedoMLS, the credibility of Sedo offers led several domain investors, myself included, to move away from Sedo.

when i sell for asking price, the table has been wiped clean

and who buyer was makes no diff before or after.



i sold 3 char com for $1,200.00 at buy it now price to a gd mls'r, and got a $9k offer waiting for my reply now

so despite the increase in lowball offers originating from gd and the mls..... i ain't moving


Good Luck to those that do, cuz that means there will be less names for buyers to look thru, before they get to mine