Earlier today, I shared that one of the things I really like about DropCatch.com is that I can pay for an auction win right away, and then I can take possession of the domain name almost immediately. I don’t think there is a perfect auction platform, but there are aspects I like about different domain name auction platforms.
I thought I would share the traits of my ideal domain name auction platform. I invite readers to share things they would like to see in their ideal domain auction platform.
Immediate payment and possession – When I win an auction, I want to be able to make my payment immediately after the auction and then get possession of the domain name right after I pay. This may add a day or two if I need to send a wire transfer due to the auction price. Getting the domain name right after I pay would allow me to begin monetizing the domain name or selling the domain name, which is fair since I already purchased it.
3 – 5 minute extension after being outbid – I don’t have the time or interest in staying in an auction for hours or days as subsequent bids are placed. I think a 3-5 minute extension of the auction closing time is more than sufficient.
Uniform closing times within a 2 hour window – I don’t want to be monitoring and bidding on auctions all day. I would like auctions to end within a set window.
Public bidder ids / nicknames during auction – For the fairness of the platform, I like knowing who I am bidding against, and I do not mind if others can see I am bidding. Not only can I get an idea if a friend of the domain owner is bidding, but I can also see if a person who didn’t pay for an auction 2 weeks ago is bidding again. If someone tries to bid me up simply because I am a bidder, fine, that’s part of the process. Sure, I don’t want to be bid up just because someone doesn’t like me or wants me to spend more, but I don’t generally get too emotionally invested in auctions, and if someone beats me while simply trying to bid me up, they will get stuck with the name.
Auctions should be paid for within a week – All bidders should have the same terms – whether they are big bidders or not. Someone with a big bidding account shouldn’t get special payment terms over other bidders.
Non paying bidders – If someone wins an auction but can not or does not pay, they should be banned. There should be very few exceptions to this rule, but if someone doesn’t pay for an auction, I do not want to see them in future auctions.
Under bidders can buy domain names if there is a non paying bidder – If someone doesn’t pay for a domain name, the auction platform should remove all of that person’s bids and offer it to the next person in line. If that person declines, the platform should offer it to the next person until the domain name is bought or deleted.
Automated appraisals should not be on the auction page – I am sure “appraisals” on auction pages help yield higher results. Even I use them as a search tool sometimes. However, I think they can be more harmful to newer investors.
Great auction inventory – As Snoopy noted below, an auction platform is only as good as the quality of inventory that come up for sale.