Everyone agrees that it’s still a bad economy out there, with no real indication of a bounce back, particularly during an election year.
This does not mean business comes to a standstill; but some practices leave me wondering what the heck is going on with some domainers.
Recently, an incident where a domainer tried to flip a domain he won on NameJet before he’d submit payment, ended up with the winner of the auction paying for the domain ten days later.
Essentially, he tried to make a profit by rushing to resell it at a higher price and having a sale committed, with which he’d then fund the purchase.
That’s called hot air selling.
Then again a buyer engaged in a Sedo agreement, and when the upper $x,xxx deal was reached, failed to make payment within the 5 day timeframe. Upon my inquiry through Sedo, he said that he’d need “a couple of weeks” to form a European company through which he’d then pay for the domain.
That’s called bullshit trading.
I don’t know about how everyone conducts business in domaining but in my book, this kind of behavior is unethical and characteristic of people with no business scruples.
When I make an offer, be it for $50 or for $50,000, I make sure I have the funds in the bank. The moment that the agreement is in effect, I must be able to commit to the terms of the agreement and submit payment.
That’s what honest domainers do.
Will you be reporting the GreatDomains auction results from yesterday?
hey Tony – This has nothing to do with GreatDomains, I’m afraid. 🙂
I agree with you, but in this business I’ve learned not to take anything for granted that anyone says, until the money and domain have traded hands. Most people are good but there are the bad apples out there.
Rob – Efficiency in business relationships is the key; when one tries to alter the rules of an ongoing exchange that’s when things get messy.