Important Changes to our Auction format

[geodomains]

AAAHHH, had to bid on a domain today on NF, client request, I found the whole process frustrating and I know the replies will be " just put your best bid in "

I personally felt ripped off by the result which I won, significantly larger bid then what I would have paid on drop.

to even get the client to agree to bid was difficult as they said ......... once again " this is stupid" .

when I told the client the end result their reply was WTF.

I actually had a bid on both platforms today for goldcoastbackpackers.com.au and was the underbidder on Drop and to my amazement saw what it went for on NF. I have to say I was gobsmacked as it was nearly enduser price I thought, about $900 difference.

So I have to say this is a prime example of NF getting more buck out of their new auction format.

Don

 

[findtim]

thanks don for your input.

yes, it is end user price.

So I have to say this is a prime example of NF getting more buck out of their new auction format.

yes, and as I said the client is WTF on me ! what has happened today is NF got more money, I had to explain to the client why I had to bid $1200 bucks when they watched it on drop for $356.

basically I was in a lose/lose situation

SO now I have a client that isn't happy with the price difference, but NF is, so I am now directly experiencing the "latitude" experience first hand, yep its no longer speculation I have it via phone when I told the client what went on prior and post auction/tender.

i wonder if NF one day no longer have the advantage will they revert ? or is that a cold day in hell?

tim

 

[Chris.C]

I have to say I was gobsmacked as it was nearly enduser price I thought, about $900 difference.

So I have to say this is a prime example of NF getting more buck out of their new auction format.

That's the other important change for NetFleet with this new system - it really incentivises them to get out there to get end users involved in their auction because they get 100% of what an end user is willing to pay whereas in the past they had to get TWO end users willing to compete for the domain to produce a good result otherwise the second highest bidder would be a domainer...

i wonder if NF one day no longer have the advantage will they revert ? or is that a cold day in hell?

It doesn't matter what percentage of domains they catch it's likely they will always be better off with this system because it only requires one bidder.

The real issue for domainers who like to buy via expiry auctions is, if this system is indeed better performing for the drop catchers, then how long until Drop implements a similar system...?

 

[findtim]

It doesn't matter what percentage of domains they catch it's likely they will always be better off with this system because it only requires one bidder.

i suggest you hire out "hunger games"

The real issue for domainers who like to buy via expiry auctions is, if this system is indeed better performing for the drop catchers, then how long until Drop implements a similar system...?

i've contemplated that, i think tha would make a good new thread, how about you start its chrisC and detail your thoughts, NOTE: i'm honestly interested as i have been doing that thinking as well.

so chrisC will you start the new thread or will i ?

tim

 

[Data Glasses]

drop may be gaining more interest by staying with their system?

 

[findtim]

drop may be gaining more interest by staying with their system?

i agree but interest doesn't = success

tim

 

[James]

DROP cleaned up today, I even used the Buy it now button on one auction at Netfleet which failed to yield a win haha...

 

[jamesau]

DROP cleaned up today, I even used the Buy it now button on one auction at Netfleet which failed to yield a win haha...

I imagine there were a handful of buy now offers on one of them. It rhymes with 'izzeria.

First good deal I've seen slip through the BIN pricing mechanism.

 

[James]

I imagine there were a handful of buy now offers on one of them. It rhymes with 'izzeria.

First good deal I've seen slip through the BIN pricing mechanism.

I purchased one domain at the BIN price, it was not Pizzeria.

It sold at DROP where I was bidding too oh well, not going to loose sleep over it.

 

[Chris.C]

drop may be gaining more interest by staying with their system?

More interest yes - but they'll still be making less money.

i suggest you hire out "hunger games"

Why?

i've contemplated that, i think tha would make a good new thread, how about you start its chrisC and detail your thoughts, NOTE: i'm honestly interested as i have been doing that thinking as well.

I'll let you lead the charge on that one.



I just tend to believe that peoples actions tend to converge back to simple principles, two of which are:

• that which is unsustainable typically isn't sustained
• self interest is eventually opted for over group interest when an incentive to act altruistically is absent

And Drop has incentive to want to make more, there is limited downside risk to implementing the change given they and NetFleet are the only games in town, plus being less profitable than NetFleet over time will prove unsustainable.

I suspect the only calculation they really have to make is if the increased profits from the tender model would justify the development costs of changing their platform.

 

[Rhythm]

From the book Networks, Crowds, and Markets: Reasoning about a Highly Connected World.

By David Easley and Jon Kleinberg. Cambridge University Press, 2010.

Second, a purely superficial comparison of the first-price and second-price sealed-bid auctions might suggest that the seller would get more money for the item if he ran a first-price auction: after all, he’ll get paid the highest bid rather than the second-highest bid. It may seem strange that in a second-price auction, the seller is intentionally undercharging the bidders. But such reasoning ignores one of the main messages from our study of game theory — that when you make up rules to govern people’s behavior, you have to assume that they’ll adapt their behavior in light of the rules. Here, the point is that bidders in a first-price auction will tend to bid lower than they do in a second-price auction, and in fact this lowering of bids will tend to offset what would otherwise look like a difference in the size of the winning bid.

 

[johno69]

Tim himself has proven this format is more profitable with the $1200 bid the other day.

The fear of not knowing other peoples bid added to the fear of not winning clearly pushes bids up again.

I admit I've only bid once since the change and probably paid a bit more than the under bidder.

I still don't like the system but I can't see it changing back any time soon.

 

[findtim]

Tim himself has proven this format is more profitable with the $1200 bid the other day.

The fear of not knowing other peoples bid added to the fear of not winning clearly pushes bids up again.

I admit I've only bid once since the change and probably paid a bit more than the under bidder.

I still don't like the system but I can't see it changing back any time soon.

I agree to my own disgust, and I am a lot more discerning on names.

yesterday I also did a buy it now on NF as I actually thought it was a fair BIN yet it was @$60 more then drop, so given history it was probably about right ?

as for the $1200, I was under client instructions so not my choice, I would have bid lower, $800 to be exact.

and then you ask " I wonder if I would have won" ? and then you ask "would I have cared if I lost" ?

tim

 

[johno69]

If you were under client instructions why did they WTF at you?

 

[findtim]

If you were under client instructions why did they WTF at you?

the WTF at me was at the very start before I bid when I explained the process and the difference between drop and NF. then there was another WTF when I sent them the bill as they saw the difference between the end price on drop and NF.

I am just trying to be totally honest here and detailing my experience of the process, probably way more then anyone else would do ? I thought that is what a forum is for.

tim

 

[Rhythm]

Tim himself has proven this format is more profitable with the $1200 bid the other day.

Today's drop has proven otherwise.

No point hitting for 6 if you can't maintain the net run rate.

 

[johno69]

Today's drop has proven otherwise.

Yes LOGICSTORM picked up an absolute bargain today IMO.

 

[johno69]

the WTF at me was at the very start before I bid when I explained the process and the difference between drop and NF. then there was another WTF when I sent them the bill as they saw the difference between the end price on drop and NF.

I am just trying to be totally honest here and detailing my experience of the process, probably way more then anyone else would do ? I thought that is what a forum is for.

tim

So you used the argument that your client was like WTF at the price they had to pay, but that was just your decision to bid that amount and not theirs. You can't whinge at NF for your decision.

I thought that is what a forum is for.

Sure is, is also where we respond yes?

 

[findtim]

Sure is, is also where we respond yes?

yes johno69 I think I have proven over and over again I put myself out there to be challenged and my reason is to learn.

and I always learn from you, whether I like it or not
-------------
as for the WTF, its plainly obvious and I have stated it many times, I don't like the system but of course like everyone else we have to deal with it.

its a dropping domain ! its not like they own them ! all they own is the system of getting them prior to a "double drop hand reg" scenario.

but $900 more then the underbidder is a bit rough imho no matter how you spin it

tim

 

[Data Glasses]

Best thread ever