.AI Auctions: “too many cases of people not paying”

The most popular auction events in the last year have been the monthly .AI expiry auctions held by the .AI registry in Anguilla. Apparently, there has been a dearth of non-paying bidders who participate in these auctions. As a result, the .AI registry is making a change.

Vincent Cate, the person who manages the .AI registry on behalf of Anguilla, announced two changes that are being made with the hope of discouraging and/or eliminating the number of non-paying bidders:

This is definitely as issue all domain auction platforms face. I don’t insight about whether it is higher or lower with these .AI auctions, but it is an issue every auction platform deals with on a regular basis.

When a bidder doesn’t pay for an auction, it’s not just the registry and auction platform that loses out. Others who were interested in the domain name lose the chance to buy it. They may get another shot in a future auction, but they lose out in the short-term.

In the bigger picture, someone who won an auction may have been an underbidder in other auctions, driving up the price for others when they don’t intend to – or can’t for whatever reason – pay. I asked Mr. Cate if the non-paying bidder’s bids in other auctions would be removed, and he said, “no.”

In fairness to the .AI registry, I am not sure if other auction platforms would also remove bids from non-paying bidders.

Last night, Dynadot sent out an update to its customers who bid on registry expired domain name auctions, and I presume it is related to the .AI auctions. Here’s what Dynadot wrote:

“The minimum participation fee will be changing from $100 USD or 2% to $100 USD or 5% of the winning bid depending on which one is higher. This will only affect Registry Expired Auctions moving forward, including the March 22, 2024 auction. For the full Registry Expired Auction participation requirements, please visit this help file.”

Elliot Silver
Elliot Silver
About The Author: Elliot Silver is an Internet entrepreneur and publisher of DomainInvesting.com. Elliot is also the founder and President of Top Notch Domains, LLC, a company that has closed eight figures in deals. Please read the DomainInvesting.com Terms of Use page for additional information about the publisher, website comment policy, disclosures, and conflicts of interest. Reach out to Elliot: Twitter | Facebook | LinkedIn

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