Show me the money!
Domain marketplaces attract investors that list their domains for sale.
The expectations are simple: by listing a domain, you’re inviting a third party to place an offer, engage in a potential auction, or acquire the domain in a BIN action.
After that part is done, the seller’s expectation is to receive notice that the domain has been paid for.
Most of the time things go smoothly, and the domain exchange completes. But what if the buyer doesn’t pay?
Two major domain marketplaces, Sedo and GoDaddy, have different approaches regarding the handling of incomplete payments.
At GoDaddy, the buyer has 30 days to pay for the domain, and if nothing happens, the seller is out of luck. Basically, there is no sharing of information related to the buyer who failed to process payment on time.
At Sedo, the buyer engages in a contract with the seller, and they provide their information at bidding/acquisition time. When they don’t make payment, that information is disclosed by Sedo to the seller. Many times, that disclosure has led to further action by the seller, who didn’t receive payment.
Neither company attempts to legally enforce these agreements, but at least at Sedo one knows the information of the deadbeat asshole.
