Should domain marketplaces increase minimum bid requirements?
Thursday, January 24th, 2013
Is $60 or $250 too low for a minimum offer? Should you be forced to set something higher?
It seems that Go Daddy’s inclusion of non-priced domains from Sedo set off the latest round of discussions about minimum offer prices, but it’s a discussion that’s been going on for years.
Sedo has a minimum offer price of $60. The minimum commission is $50, but may be waived if you park your domain with them.
Afternic has a minimum offer price of $250. Its minimum commission is $60, or $120 on a premium listing.
I’ll admit that I get annoyed when I get a $60 offer at Sedo. But I also know that I can set whatever minimum bid I want, so it’s kind of my fault.
This week Sedo announced in its newsletter that adding a minimum bid is now part of the domain listing process, which makes it even easier to avoid these lowball offers.
That said, should marketplaces consider upping their minimum bid requirements overall?
It’s not that easy of a question. I’d start by pointing out three things:
1. You can already set whatever minimum bid you want, as I’ve mentioned.
2. Some offers start out small but turn into something big.
3. Low offers are a good starting point for an auction.
But the big thing that weighs against increasing a minimum bid threshold is that both Sedo and Afternic are selling domains for their minimum bid prices. I even noticed one case in which a big name domainer that sold a domain on Afternic for $250.
If deals are getting done at these prices, it should not be forbidden. We’re talking about two willing parties; a buyer and a seller.
What do you think? Should Sedo and/or Afternic increase their minimum bid requirements?