Dispute.com sold at GoDaddy Auctions last week for $65,000. I learned that the winning bidder in this auction defaulted, and this news was confirmed to me by Paul Nicks, GM of the GoDaddy Aftermarket.
The way GoDaddy’s system works on default winning bids is that the next highest bidder would get the opportunity to buy the domain name for the next high bid as if the winning bidder did not participate. If that buyer opts to not purchase the domain name, the opportunity would go to the next high bidder. This continues until a bidder accepts the price and purchases the domain name.
The domain name was sold to the sixth highest bidder in the auction. Although GoDaddy does not disclose sale prices, the company made an exception in this case, and I was told the domain name sold for $38,000. This sale price is just shy of the top 100 domain name sales (year to date) recorded by DNJournal.
I believe the original winning bidder will no longer be able to participate in GoDaddy Auctions. It is a bit surprising that the bidder was able to bid so high and then default. I am unsure if the company will take legal action against the bidder to recover the difference between the winning bid amount and the eventual sale price.
Update: GoDaddy’s Joe Styler shared this comment below but I thought it was important to highlight:
“The reason for default was not that there were not legitimate bids. We are pretty good at making sure that the bids are good on our auctions. The problem was the price and the speed needed to make payment on that amount. Since it is an expired domain we have very little time to collect payment and assign the domain after the auction ends. I don’t want to go into it all but the name is a great domain the people who bid wanted to buy it. Payment speed was the issue. There are restrictions on how much money can leave certain countries in certain timeframes, credit card payments that high are possible but limited. Many banks or customers cannot/will not process a payment that large. Even a US based winner with cash needs to get the cash to us somehow and with some of the timeframe being a weekend the banks were not able to get the money wired to us in the time we needed. I believe the buyer was someone who could use an AMEX with high limit to make payment in the right timeframe. I think everyone who bid on this name wanted it and could pay, just not fast enough.”