A very active domain investor and entrepreneur, alerted us to the following domain scam that he came across not once, not twice, but three times at Sedo. The same trick might be in effect in other domain sale venues as well.
Here’s how the domain scam works.
- You get a direct solicitation for a domain listed at Sedo, which you end up selling for a low amount, e.g. $2,500.
- After the transaction completes, and before you remove that domain from your Sedo account, you get a notification of an offer at Sedo for that same domain; the amount is substantial, e.g. $25,000.
- Obviously, if you’re tempted, your next move is to try to get that domain back from the buyer.
- The original buyer plays hard to get; finally, he agrees to sell it back to you for a much higher amount than what he originally paid, e.g. $15,000.
- Wow! You just made $10 grand by doing nothing, right? At that point, if you follow your greed and complete the purchase before your new buyer pays, you can kiss that money goodbye, as they never submit payment.
- You are stuck with the same domain and a hefty loss.
It’s obvious that the original buyer places a gamble on one’s willingness to fall prey to this scammy method.
Moral of the story: don’t try to sell a domain that you already flipped; chances are that the scam we just described will cost you a pretty penny.
