In late 2009 I accepted an offer on Sedo for one of my domain names; a dictionary .net with several uses. The buyer was from a country in the Middle East and a newcomer to Sedo.
After waiting patiently for payment for more than 30 days, it became obvious that the buyer would not fulfill their obligation and Sedo canceled the transaction per my request.
They also banned the buyer from the Sedo marketplace as a deadbeat and provided me with the buyer’s name and info. Unfortunately, the buyer’s locale made it impossible for me to proceed with any form of legal action, as I would have done if they were in the US.
Fast forward to the future, 20 months later.
I received a sizable offer for the same domain and decided to send the domain into a Sedo auction. Unfortunately, it ended with a single bid: that of the person who had made the offer.
The buyer paid promptly and issued a request for an invoice, thus revealing his name – and that’s where the transaction turned very interesting: it was the deadbeat buyer from 2009.
I’m a realist when it comes down to domain pricing: the market’s liquidity dictates the pricing – as long as one decides to sell instead of holding long term.
Naturally I would have proceeded with the transaction, as I’ve done with hundreds of others on Sedo. But this wasn’t an ordinary transaction, it was a mockery of honest trading. It’s one thing when someone gets a good deal based on circumstances or the willingness of the seller to sell lower; it’s another thing when they reneg on a deal and break the contract.
I contacted Sedo, notifying them that the deadbeat buyer was somehow back on Sedo and that I wasn’t going to proceed with the transaction. What matters to me isn’t losing a sale but rather, having justice delivered. It’s a matter of ethics to honor a contract and by going around that, the buyer was essentially not playing a fair game.
Sedo deliberated for only a couple of hours before letting me know that they agreed with my position; the buyer had been banned for a while and was allowed back in at a later time per his request for “good behavior”.
Sedo froze the payment at escrow and informed the buyer that they’d have to come up with the remainder of the payment, honoring the initial contract.
It was a brilliant move by Sedo: the buyer’s eagerness to pay indicated that they had both their money and their reputation at stake. If they didn’t pay, they’d have to reverse the charges and lose every chance of every being on Sedo again. To my pleasant surprise, the next day the buyer accepted to honor the original contract.
I sat tight for a few more days while Sedo processed a split payment and finally the deal was complete. It took 20 months from the initial contract to the completion of the transaction but that’s fine since justice was delivered. It also more than doubled my anticipated revenue from the sale.
The way that Sedo handled the transaction was truly fantastic and communication via the phone was superb in every aspect. It’s also gratifying to see that the buyer decided to play fair in the end, so kudos to him for that.
You’ll find out about the $6,200 sale in next week’s DNJournal.
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Congrats on the great sale AND for sticking to your guns, although you could have lost money.
Sometimes money is less important than ethics and justice.
I’m glad to see that Sedo was on board with you.
🙂
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Thanks for sharing and congrats on the sale. Nice work Sedo
Jennifer – thanks 😀 It’s very satisfying seeing how the matter was handled by Sedo and that the buyer had scruples after all.
Bill – You’re welcome, I think that sharing stories that are “different” adds to the wonderful domain industry we’re a part of 🙂
U the man. You have honesty DNA character traits in your business deals. I would do business with you anytime.
What an anecdote! Good job and congratulations to all parties – I hope the buyer goes straight henceforth.
Do you think the buyer had scruples in the end or was it more a case that they just want/need the name that much more at this time, and decided to pay up reluctantly because their hand was forced?
Congrats on the great sale! Just to clarify one thing: so the buyer paid the total amount of 2009 and 2011 prices?
Thanks Poor Uncle, much appreciated.
Uzoma, I hope so too. Deadbeats give the industry a bad name.
DA (Mike) – I think you’re right, after all, the send to auction price was his “final offer”. So I assume they were “strong-armed” by Sedo in that sense. One more reason to love Sedo 😀
Joe – No, the buyer paid what he agreed to pay in 2009, which was more than double the 2011 amount.
Congrats,nice that it worked out for you.
What a great way to hold out – congrats on moving the domain at the initial price.
Congrats on your sale,
and i agree – when it comes to sedo and for them to make more money out of commissions – they will do anything they can …
Hey Acro,
First off congrats on the sale 🙂
But I was a bit confused… am I right to understand that the second offer from the same buyer was lower than the offer back then? But upon acknowledgment of the first contract which was broken, and as part of “good behavior” of the buyer, the initial offer of $6200 was observed?
Not Offline – Correct. I would not have minded the recent sale price as compared to the first one, if the buyer were someone else. The fact that it was the same person made all the difference 🙂
John – $300 more in commission is peanuts to Sedo. Also, they charged the original transaction’s fee at 10%, versus the current 15%. Sedo did all they had to do to maintain “fair play”.
This is why I love those at Sedo. Great group of individuals, always trying to do what’s right.
Was it shoot.net?
Ralph – Yes it was.