Verification process should reduce questionable bidding.
Responding to complaints about the integrity of its domain name auction platform, GoDaddy rolled out a bidder verification requirement today for its auctions service.
Bidders are restricted to participating in two auctions and a maximum of $1,500 in bids until they complete the verification process.
To become verified, GoDaddy Auctions will require bidders to have a verified PayPal account. PayPay verification differs by country, but is typically granted when a user links their bank account to their PayPal account.
Existing customers with known accounts that are in good standing have automatically be verified. GoDaddy’s aftermarket support group will handle situations in which a user cannot be verified by PayPal on a case-by-case basis.
Paul Nicks, Senior Director Aftermarket, released this statement to Domain Name Wire:
Our customers have made it ‘loud and clear,’ they want more checks in place with regard to qualifying bidders. We’re rolling out our first step toward pre-qualification this week and will continue to monitor feedback on the process and adapt to meet customer needs, as needed. Platform integrity is an integral part of our team’s mission. We will continue to focus on developing and evolving policies and procedures that promote customer security and trust.
GoDaddy has been under increasing pressure to prevent fake bidding on its platform. In one recent embarrassing case, two bidders pushed an auction for BetTrade.com to over $1 million. Once the fake bids were removed, the final auction price was just $117.
My guest on the DNW Podcast on January 19 will be GoDaddy SVP and GM of Domains Mike McLaughlin. One topic we’ll cover is the aftermarket and improving its integrity.