Sedo in listing your domain is supposed to get you the MOST amount of MONEY in the LEAST amount of time using their marketing budget to find you the ideal prospect. How else could they justify taking a hefty commission for doing anything less?
But it seems Sedo has a different agenda. A hidden alliance. And that is with the big corporations with whom they work in stealth mode to get the LEAST amount from the listor so the buyer can walk away with a bargain. Example: EverythingEverywhere.com where the seller got shafted out of six figures or more from end-user buyers who pay that much to throw this call-to-action name on a 30 seconds American Idol spot.
It's time to stop looking at domains from the lenses of just an Estibot search-centric perspective. Domains as brands and in advertising call-to-actions have FAR more value that's not immediately apparent. Because it's the TV spot, its creativity in execution and voice repetition of the words that takes the domain to a whole other level. Sedo understands this well, but apparently doesn't share. But they do like those commissions for doing nothing to add value to your sale.
Until you understand this, and are willing to wait for the right buyer at the right time, you will be pissing away dollars, just like THIS GUY did.
***end rant**
14 comments:
Corporations and businesses HAVE to have a way to purchase domain names that allow branding, without being exploited and having prices blown up.
I agree but I think it's a conflict of interest just the way buyers and sellers shouldn't be represented by the same Realtor or lawyer.
It is a conflict of interest, no question about it.
Sedo wears two hats, three if you include aquisitions they make for their own domain portolio.
The Sedo sale sounds like it was just the normal online offer-sounter offer with another agent (melbourneit) being the buyer. Not sure how the seller got "thrown under a bus". The name would have been worth very little.
Secondly Sedo doesn't necessarily have an obligation to get the best price possible for the seller. I guess it depends on who you see them as working for in a given transaction.
Sedo got me some low ball 5 figure offers for 6 figure domains a few years ago. I am used to knowing who I am selling to so I can make an intelligent decision. That's when Sedo and I parted ways.
Yes, I have had the same experience. The problem is that there are no ethical guidelines in the domainer industry, and therefore Sedo can approach a Seller and implicitly suggesting that they are going to be working on behalf of the seller (e.g. at an auction) but really trying to get the cheapest price possible for themselves or a known buyer. It is very similar to what Goldman-Sachs is on the hot-seat for - i.e. non-disclosure of a conflict of interest. For this reason, I have written off Sedo as a potential broker for my premium domain.
Exactly what snoopy said, not sure how the seller got thrown under the bus. Why? Because he didn't get a chance to inflate the price? In most markets, this name would be $2k to $5k max. Shall the seller know their plans, he would of jacked it up to $15k to $20k, perhaps more.
Its why every time when I contact sellers, I use a gmail and play it off like I am a small startup business, hoping they don't jack up the price at first sight. Most of the time it works, but damn, I will give it to this Jacques guy of Netherlands to see through it and say "I dont care whether you're a big corporation masking themselves as a small startup or even you are a small startup. A PREMIUM DOMAIN IS WORTH A PREMIUM AMOUNT. Domains are real estate and theirs only ONE name with ONE dot com - want it or not, I don't care, but you will pay the price I ask, otherwise find another name" Or something along those lines.
I respect the guy for what he said because everything he said is true.
Just because it was a big company buying it, it doesn't mean that you should inflate the price sky high.
I am sure that if sellers did not think price was fair(e.g. price was low) he could just keep it to himself.
Therefore he sold domain for a fair price, that he thought the domain is worth for him.
Why suddenly he decided he sold too cheap?
Just another ignorant pissed of seller who thinks that you can charge tons of money for cheap names, that otherwise have 0 to nothing value.
Everyone keeps saying this domain is worthless. You are basing that on search-centric thinking. That's only one use of a domain and the least important component when determining value. The other is branding and advertising-- the world where I live- the world where agencies probably charged $50-250K to think that slogan up and so what's the domain worth? Especially when $2 trillion asset manager JP Morgan just paid and agency over a million $$ to come up with the EXACT same slogan for its ad campaigns:
http://goliath.ecnext.com/coms2/gi_0198-545475/At-JPM-Image-Is-Everything.html
The only two domains I've sold at Sedo was due to my own advertising. However, I do like Sedo's system. They email you, have a section reserved to transfer the domain, and respond quickly to questions.
Sedo is a high class domain company. I've found that many of my domains are rejected because when domains change hands, the domain age resets back to 0. I know I have a nice domain collection.
As with most domain companies, you have to pay money to promote your domains. There are way too many to browse through, especially when millions of them sit around online doing nothing.
I've learned that Sedo wants quality domains to be pushed to the front, only because it includes bragging rights to making a huge sale. Image is everything.
If any company is ruining the domain industry, it is Bargain Domains. They want quality stuff for a fraction of the cost. Most people won't pay more for highly sough after domains due to if viewing marked domains at Bargain Domains.
Sedo is a good company that has a nice system. They make their domains accessible. You must spend money to make a sale.
http://Suisun.org
Afternic / BuyDomains /NameMedia have thrown their domainers under the bus a LONG LONG time ago. It only makes sense that Sedo has recently done the same. Hey, you know, they probably want to remain "competitive" with the market. One or two others screwing the customer - lets ALL follow the money and screw the customers too.
@Rich: You are 110% correct. There are no ethics, no transparency and no accountability in this domain name industry. I swear, its like people you would never want to meet in a dark alley supposedly "working for you" out there.
We need someone to step up and do it correctly. Build a brokerage that doesnt rob the client but also has a clearly profitable business plan. We need it yesterday!
Wow. I agree with...Owen Frager?
Bit rich blaming Sedo.
They presumably want as much commission as possible. Unless you are suggesting they took a backhander in this transaction, you are talking nonsense.
If there is any blame, it lies at the seller. Like most sellers, they are awful at marketing so accept whtever comes their way.
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