Backorder Domain Auctions - False Metrics, Lost Revenue

Domain brokers and re-sellsers are inflating their metrics with false numbers.

The Back Story

Edoceo has been tasked with acquiring a domain name on behalf of a client. We'll call it "V.com"

We review the WHOIS to attempt a direct transaction. This is blocked by the GoDaddy Domains by Proxy addresses. No matter, simply make a purchase attempt via GoDaddy to use their auction system. We began that process and submitted our bid.

The False Metrics

When we first viewed the domain auction with GoDaddy the metrics were zero (0) direct visits and zero (0) auction views. We attempted bid placement however, since we had to login in we were redirected back - now the view count was two (2). Our bid was entered and prompted to visit the shopping cart - for a domain with a bid view count of four (4). Returning back to the domain review page the view count now shows six (6)! We completed the bid process with a view count of seven (7) showing; still zero direct visitors.

Lost Revenue

The domain auction had a few (20+) days to close. Of course, we kept checking on it too. By the time it close the view count for the auction was over 20 - that was 99% us.

The down side is that the seller viewed this as an increased interest in their domain. And while we were interested and bid accordingly ($600) this decade old, unused domain remains unsold.

It appears that the false counts delivered by GoDaddy & Sedo provide a soft-basis for inflated value for the domain holders. Rather than pocket $500, this domain owner will likely lose another $50 over the next five years waiting for another buyer. And with new TLDs coming on-line, the demand for .com is waning.

Whatever, domains are easy to find - $9.95 got us another very cool .co.