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Originally Posted by Pornwolf
No, you are not off base. I just won a domain from them. The domain was a obviously nice mainstream one. The "bidder" that started bidding against me was obviously fake. I thought I had time to finish bidding and I went out of town, forgot the bidding was ending and I lost... for just $61
Now, I don't know about you, but if I win a bid that costs $1 more than it cost me to backorder the domain I wouldn't let it go. But somehow, the bidder did just that. I was awarded the domain after all.
That leads me to believe the computer is setup to automatically start bidding to up the price. I can't say this isn't a smart tactic on their part. It's not illegal as far as I know. It is shady though.
At the end of the day I truly believe you can't trust anyone in the domain acquisition process 100%.
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Interesting - just think how much revenue they could generate in a day, the numbers are crazy - if they just push up say 10 domains a day by $1K of the hundreds / thousands that are going through there - thats an extra $30K a month - of course if they did 50 a day - you see the potential for abuse.
I agree its not illegal - but I don't see anyway to possibly put a check and balance against this. The only thing I can think of is another competitor - and godaddy and others are not good compared to them at grabbing domains - the last 30 or so with godaddy have all failed.
Anyone with any ideas how to put in a check and balance against these guys?