Sedo.com’s Contract Protects Sedo, But Not Sellers Or Buyers

[Nigel]

I'm not surprised at the revelation that it is very difficult to enforce a sedo agreement through the legal system.

But Sedo have done nothing to help the situation where increasing numbers of buyers and sellers renege on deals. In our opinion (and experience) they take a far too lenient line on defaulters. Sedo are the largest domain marketplace in the world and it would really hurt defaulters if Sedo laid down their own law that defaulters - for whatever reason and on the first offence - would be barred forever from using their facility (for parking, buying and selling). This ban should be extended to associate companies and any other company that the buyer may work for or represent in the future. We currently have three sales from a while ago that are on their third reminder letter. It's about time that Sedo started issuing a standard letter that the deal is about to be cancelled and that their account is about to be terminated permanently (and will not be resurrected or a new account permitted). Over time Sedo's membership would be cleaned up and we would all see far less activity from these messers. So Sedo are you going to take a harder line? Will you issue permanent bans to all defaulters? And when are you going to construct a formal warning letter that includes details of the ban?

 

[Edwin]

Agree 110%, Nigel. But in practice I expect pigs will fly first!

 

[sedo]

I have forwarded your suggestions to improve the payment reminder emails.

We do block accounts in the event of a cancelled transfer.

If you have a specific complaint about a cancellation situation please contact your account manager or customer services if you if you do not have a Sedo Pro account.

 

[Brassneck]

How about for those parking domains who don't complete that you follow the Google line whereby you close the account and Sedo keep any outstanding parking revenue?

Some of my incomplete sales have been from domainers.
Might not stop many, but could be a disincentive to some.

Stephen.

 

[jasman]

I'm completely in favour of a permanent ban and account closure including stopping domain parking for non-payers. The less lawyers sticking their noses in exploiting things the better in my opinion.

I know a number of times in this forum people have brought up the subject of naming and shaming and sharing ban lists in the past. That would be even better, banning people from most of the main domain trading marketplaces at once, if only it were possible given the privacy laws.

 

[Americar]

I have forwarded your suggestions to improve the payment reminder emails.

We do block accounts in the event of a cancelled transfer.

If you have a specific complaint about a cancellation situation please contact your account manager or customer services if you if you do not have a Sedo Pro account.

**We do block accounts in the event of a cancelled transfer.**

I think that spells it out in black and white ,, Sedo only block Cancelled Transfer accounts ,,

That doesn't sound/look like, that Sedo block the accounts of defaulting bidders/non payers.

What does that boil it down to a lottery .. maybe a seller will get paid maybe he wont ..

There appears to be no penalty to the defaulter and little to no recourse for the seller except prohibitive legal action ..

Please feel free to correct me if i am wrong Joanna

 

[jasman]

Here's a solution. In the contract that buyers agree to when making an offer on a name, it could state that failure to go through with the sale will incur a cancellation compensation payment of 50% of the domain price. This would be shared in some ratio between Sedo and the seller. If the buyer refused to pay that, then Sedo would then pass the debt on to a debt collection agency and the usual debt collection process would take place i.e. if they didn't pay the debt collection agency they would get a court judgement against them followed by bailiffs. But the debt collection agency would handle that, that's their business.

From a buyer's perspective this would mean that they'd be better off going through with the deal and paying 100% for a domain name than paying 50% and end up with nothing.

From a seller's perspective they would receive a significant percentage of the domain's value and get to keep the domain.

From Sedo's perspective they would earn revenue on every sale whether it went through or not, either from the buyer paying up for the name, or from the buyer paying up the 50%, or from the debt collection agency purchasing the debt.

So all the uncompleted sales would instead of remaining an annoyance and time-loss would become a new profitable revenue stream for buyers and Sedo.

So everyone's a winner, including those people who like bidding and changing their mind, who would learn a lesson and see the wisdom in keeping their word.

 

[sedo]

Hi Jasman

That is a great suggestion. The debt collection part could be a problem however as we have buyers globally.

Kind regards

Joanna

 

[Edwin]

How do other industries and other types of sales venue enforce deals? For example art and antique auctions? They have buyers from all over the world spending sometimes millions of pounds at a time. How do they ensure payment? How do they chase and "persuade" defaulters?

If you can find out the answers to the above (I wish I knew - I'd tell you if I did) you'd then have a blueprint for setting up similar control mechanisms inside Sedo.

 

[grantw]

How do other industries and other types of sales venue enforce deals? For example art and antique auctions?

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a6zUNWnEBNZQ

 

[Edwin]

That is a great suggestion. The debt collection part could be a problem however as we have buyers globally.

Joanna, as I understand it Sedo has a legal process in place for trying to extract the 10% fee from defaulting sellers. Since they're all over the world, yet you still have a process, why not use the same process to go after defaulting buyers?

 

[rob]

 

[retired_member12]

Have you noticed how Sedo obviously feel they need to emphasise every section of their agreement here which relates to indeminying or waiving liability for Sedo?

 

[jasman]

Most Western countries surely have national debt collection agencies which can handle all debts within the country. Even just getting the system in place in the UK, US, Germany would turn 90% of the defaults into money making opportunities.