There are many things I like about Sedo, especially the people who work there. Two things frustrate me about the platform. The first point of frustration is the send to auction feature that I wrote about before. I strongly dislike that someone can make a private negotiation public, allowing others to participate. Others have like it, especially sellers, so that’s probably more of a personal opinion.
The second area of frustration for me is how Sedo’s “Listing Price” feature can easily be disregarded. When I see a Listing Price somewhere, I expect that to be similar to the asking price, which to me anyway, translates to what the owner wants for his or her domain name. I would expect this means that if I am willing to pay the listing price, that I will be able to buy the domain name. On Sedo sales threads after the offer is made, it’s even listed as “Desired Price.”
With the way Sedo works, I can also make an offer less than the listing price and can negotiate accordingly. The general idea is that if I offer less than the listing price, the owner will either stick to his listing price or attempt to negotiate a price that is somewhere between my offer and the asking price. However, it’s very easy for sellers to ignore their listing price and ask for an exorbitant figure.
Yesterday afternoon, I saw a domain name with a $1,000 listing price on Sedo. I offered $600 for the domain name figuring that it was close enough that the owner would be willing to negotiate. Worse case scenario would be that the owner replies letting me know the price is $1,000 and it’s firm. To my chagrin, the owner quickly replied and told me the price is $10,000.
I don’t understand why a domain owner is able to have a $1,000 listing price and then jack it up 10x when an offer is made. I do get that domain values and prices are dynamic and change based on news, comps, and other information, but it should be the responsibility of the seller to update his or her listing price.
If I wasn’t involved in the domain investment space and I was trying to buy a domain name like this, I would think domain investors are sketchy for having a listing price and then jacking it up when interest is shown.