Can You Trust Domain Auctions?

On a day when I write about Bido.com, the new kid on the domain auction block, it's ironic that there is trouble brewing elsewhere in the domain auction market. Namely, those who auction off dropping names.

http://www.thedomains.com/2008/06/21/ethics-of-domain-drop-auctions-tdnam-and-namejet-called-out-yesterday-today-we-call-out-tucows/ should be read by all domainers now, particularly those who might occasionally take part in a domain auction run by the "reputable" operations of TDNAM, NameJet and Tuwcows.

I won't go into the details, as it's done better and more eloquently elsewhere (see http://domainnamewire.com/2008/06/20/expired-domain-services-let-employees-bid-against-customers/ for example), but all I will say, is that if I'd been involved in any auctions with these companies, I'd be asking some serious questions right now.

Ever since the very early days of Afternic auctions in the late 90's, questions were asked about shill bidding. In fact, this question has been raised about most domain auctions at some time or other.

The disturbing thing about what's coming out now about the ones named here are that it goes well beyond shill bidding and could be considered downright fraudulent in certain circumstances.

There is a definite conflict of interest in my opinion, if staff of the auction companies, who often have more than just a passing interest in domain names, are allowed to take part in the auctions. Especially the ones that don't let you know who you're bidding against.

I've never taken part in a domain auction. I doubt that I ever will.

However, when somebody who does participate and spends six figures annually pulls out and starts shouting, then I for one am all ears.

Watch this story grow in the short term. I think a lot of people are going to start complaining and voting with their feet.

All is not well in domainer land.