Although I don’t recall actively participating on a six figure auction on NameJet, I have been an observer on quite a few of them. One thing I found peculiar is that an auction could be in the half a million range and bidding would increase by just $100 per bid. This was a bit frustrating considering the auction is extended by 5 minutes for every bid placed in the final moments of an auction.
I just learned that NameJet has changed its bidding increments for auctions over $25,000. The new bid increments for auctions above $25,000 are below:
Current NameJet Bid Increments:
- Less than $1,000 – $10
- Over $1,000, but less than $25,000 – $100
- Over $25,000, but less than $50,000 – $200
- Over $50,000, but less than $100,000 – $500
- Over $100,000 – $1,000
I asked NameJet General Manager Jonathan Tenenbaum to share the rationale for the change, and here’s what he told me:
“During some of the recent high-value auctions, such as SX.COM, we saw that the bid increments were not really consistent with value of the current high bid. And although this might preclude some from bidding further, increasing the bid increments will speed up the auctions and help maintain a more productive rhythm. Ultimately, we want to create the best auction environment possible, and as we intend to bring even more high-value domains to our platform we want to make sure that it operates effectively.
For example, looking at XR.COM (which is currently live in auction at $552,000), a $1,000 bid still represents less than a .2% increase for the domain, whereas a $100 bid would be less than .02%, which is too small to allow for productive bidding, especially when the reserve has yet to be met (although it is getting close).
So now that this is implemented we will continue to evaluate and further adjust as needed.”
As a buyer, you need to be aware of this change because it can impact your bidding strategy. I presume some bidders liked to increase their bids by $100 to wear out the other party. As a seller, you need to be aware of this change because it could theoretically impact bids, especially on auctions in the 6 figure range.
I am sure Jonathan will be happy to answer any questions or discuss this change if requested.