I’ve always been weary of the online bidding process, especially when it comes to domain names and here is a good example of why…? the suspicious bid.
I was just participating in an auction at Namejet.? I bid up to the maximum amount I was willing to pay and the other guy’s proxy bid was $100 higher so I dropped out.? I didn’t know what his top bid was, and I wasn’t willing to keep going up in increments of $100 to find out when I reached the peak already for what I was willing to pay.? I checked out the auction ten minutes later to see what the final price was and here is what I find suspicious.
The domain auction ending price was $2,508.? The runner up’s last bid was $2,444.? When the runner up bid this amount and he saw the high bidder remained, but with a bid of $2,508 the runner up knew that since the high bid was $2,508 and not $2,544 that $2,508 was the high bidder’s top price.? Meaning he could have claimed the high bid if he bid $2,608.? He knew this.? I don’t think guys who are consistently bidding in the $X,XXX range would not know this, it is simple math.? So he knew this and he did not bid, he let the other guy take it. Where’s the logic?? If you’re willing to pay $2,444 and then you get access to information that says you can get the high bid if you get to $2,608 I would think you’d spend the extra $150.
Now… I know some people set a limit on a domain and won’t move past that limit (I attempt to do that though if I know what the high bid is using my powers of deduction like above example I will usually pony up the extra $100 or $200), but I can’t tell you how many times I’ve seen this scenario occur and it is more than fishy to me.? Am I alone here?
And I’ve been on the receiving end of this a few times, most recently on GoDaddy.? I was going to be away from the computer so I put in my best bid on a domain, something like $752.? At the time, with two hours to go the current high bid of mine was only $115.? Later on that day when I sit down at the computer I check out the GoDaddy auction and I see that only one other person came into the auction and bid, and what do you know, they ran up the price to within $10 of my max bid and then they walked away.? If they were willing to pay $745 and they could then see what my top bid was, wouldn’t they have spent the extra $20 to win it?? I feel like I got taken for a ride there.? Now could this have been totally legit and just happened this way.? Of course.? But am I suspicious when I see something like this that makes no sense to me, absolutely.? And because there is no clarity in this bidding process I/you will never know if everything is on the up and up or if we’re getting taken to the cleaners by someone gaming the system.? It just always seems like there’s one other guy who’s always there driving up the price.? Sometimes its legit, but is it legit all the time?