Beware of TDNAM auctions in the thousands of dollars
Using TDNAM can lead to some great acquisitions on the cheap; while their auction interface lacks the live updates like that of NameJet, there are still some great deals to be found.
Unfortunately, I had a taste of the pitfalls of the GoDaddy TDNAM system recently, when an auction I won ended up with the renewal of the domain by its owner, four days later.
While GoDaddy offers a full refund, it’s not yet clear if it’s in the form of GoDaddy credit or a return of the funds to the originating source. The funds are returned within six days, according to GoDaddy.
When the money at stake is in the thousands of dollars, this can be really problematic.
In essence, I would not recommend spending thousands of dollars on a TDNAM auction and risking the clawback of the domain within the seven day timeframe that follows the end of the auction.
December 22nd, 2011 at 12:12 pm
“return of the funds to the originating source.”
they will give money back. but…watch and make sure you get the money….someone has to authorize and can slip thru their cracks.
same thing happened to me…won a great name and good price…then got email owner paid for it….heartbreaking.
but…took me 3 weeks or so to get money…someone didn’t authorize…so make sure you get money back…mistakes do happen.
December 22nd, 2011 at 12:17 pm
they credit you the same way you paid.
December 22nd, 2011 at 12:20 pm
Tom – Thanks for the news. So I guess it’ll end up back in my PayPal account.
Paul – Indeed, getting a great domain and having to return it is frustrating. TDNAM should stop this practice and auction off domains only when they are past the 35 day renewal grace period.
December 22nd, 2011 at 3:48 pm
Same thing happened to me a few months ago with three names totaling in the high $x,xxx range. So disappointing when it fell through so I definitely know the feeling!
Got my money back so I still feel it was worth it on the chance I could get the names for such a good price.
December 22nd, 2011 at 4:01 pm
hey Morgan
Good to see the money is refunded but frankly speaking, it’s a pain in the ass to shuffle funds like this.
December 22nd, 2011 at 4:08 pm
I have people clawback firesale domains from me all the time. LOL Not kidding either!
If a domain you won gets reclaimed, I would advise to contact your rep (if you have one) asap and you will get refunded that day. That is what I do at least.
December 22nd, 2011 at 4:14 pm
Jamie – Thanks for the advice, I appreciate it.
December 22nd, 2011 at 7:25 pm
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Unlike Namejet and Snapnames, at least GoDaddy TDNAM is up front about the possibility of the original owner redeeming the domain name, but I do agree that it would be more prudent for the 42 days to pass before auctioning the domain.
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December 23rd, 2011 at 11:11 am
Be sure and keep a check on the name you are watching or have won. I personally know of a domain investor contacting orig owners and purchasing. Beware and follow the trail he is doing it and godaddy is aware of it SCAM CITY!!!!!!!!!!!!!!!!!!!!!!!
December 23rd, 2011 at 1:15 pm
Lots of fake and not professional domain auctions!
Amateurs!
December 23rd, 2011 at 4:21 pm
My refund was completed 24 hours later. Not bad