A few weeks ago, I noted how most active domain auction venues lack one thing in common: the ability to display the annual cost for renewing the domain.
Kevin Fink was the only one that contacted me privately on the matter, to assure me that Flippa takes notice and many improvements are slated ahead.
That’s great news, particularly since I’ve now added one more item on Kevin’s list, the issue of the ever-shifting BIN price at Flippa auctions.
Last week I was bidding on an exceptionally good domain on Flippa; with 15-20 minutes left until the end of the auction, I was the high bidder, with another person actively inching up.
I was prepared to bid higher and held on, witnessing a delay in the other bidder’s counter-bids. Despite of the quality of the domain, the BIN was borderline “end user” price and the seller had already come down from five figures.
In the last comment left by the seller, he had explicitly asked the buyers to take advantage of the particular BIN or bid aggressively.
With minutes left until the end of the auction, I received a notification that it had ended, after someone used the BIN. To my astonishment, the BIN price had been lowered substantially, within range of my placed top bid.
There was no notification of the BIN drop, thus eliminating me from the auction.
It was a clear indication that there was a private arrangement between the seller and the buyer, to end the auction and sell the domain. For this type of unprofessional behavior, I wasn’t prepared, and questioned the legality of the process.
Kevin Fink confirmed that ‘unfortunately, this is permitted’ and they are looking into improving the process.
Indeed, the particular part of the process needs to be changed, as bidders can waste time and wait for the auction’s end, all while some slick dude will go behind their backs and arrange for the auction to end via the lowering of the BIN.
One way to change the process, would be to disable BIN changes in the final 24 hours of the auction, at minimum – if not completely for auctions that have received bids. This way, the gaming of auctions would not occur, thus saving the rest of us the frustration.
Personally, I am not going to bid again at Flippa on auctions that have a BIN which can be altered at any time.
Count me in as well. The seller arranging for a sale behind the scenes by changing the bin momentarily, is sneaky. Agreed, lock the bin a day before the auction ends would be the best compromise.
LK – It’s definitely representative of the seller’s ethics. They could have announced the BIN drop in a comment for everyone to know but that wasn’t the case. So Flippa should seal this “back door” to ensure there is no favoritism.
Seems like an easy way to shill bid the name and once you got someone on the hook you dump it so you don’t get stuck with it. It seems like a way to bid it up and make a guaranteed sale.
That is an interesting scenario, some folk just see cash over all things, if it was me and there was a bid above a Bin ….. I would have waited. It may have cost them some money!
was it Menz.com ??? because thats what I also watching
You should have contacted the buyer yourself to arrange for it. I guess you don’t want to pay as much. No bad in negotiating with the buyer concerning BIN bids. Next time, inform the buyer of your bin and he might accept your offer.
@Domainscoop I thought the same.
One day lock should be ok to mitigate this issue.
This is a very bad policy for Flippa
Todd – Actually Flippa has several mechanisms in place to identify and prevent fraud. Then again, some sellers can be rather crafty.
Hire.Domains – Agreed, the lowered BIN was actually lower than what I would have bid, so in that sense, they lost money. My cost in the end: zero.
domainscoop.com – No, it wasn’t Menz.com. Did you experience the same type of action with that domain?
Salim – Maybe that’s the norm where you come from, but an auction isn’t a middle eastern bazaar.
Brad – I am sure they will fix it per my recommendations.
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