Bad experience with DomainHoldings - Anyone else deal with them before?

[TheAlien]

I recently had a bad experience with them. I spent hours with the broker, working on the midnight(1AM - 4AM) of my time(I am from China), finally I agreed the deal(a deal over $300k) with one of their brokers, but I didn't sign the agreement with them because I was tired. When i wake up, emailed the broker for how we want to send the payments and he get back to me that deal is gone because they received a better(10k more) offer. I asked why, their response is quite unreasonable:

[2012/6/28 20:40:06] William Lin: We have an agreed deal [NAME REMOVED]
[2012/6/28 20:40:48] NAME REMOVED: alll deals are pending until we have signed paperwork from buyer and seller
[2012/6/28 20:41:10] William Lin: so you simply back out the deal because you received an higher offer?
[2012/6/28 20:41:26] NAME REMOVED: yes, without paperwork, that is correct.

That would be my experience with them, anyone else have similar experience?

 

[allanh]

Domain Holding acted as an intermediatory (like an Escrow service) for one of the domains I was selling not long ago. They released the final selling price to DnJournal despite we had a non-disclosure agreement. When we chased DH up, they said it was an internal mistake........

 

[grcorp]

I've met the guy behind domainholdings... Jason Boshoff, he's a very straight-up guy, I wouldn't have any reason to believe he'd do anything unethical.

What you have to realize is that that's business. It's not official until it's official.

As far as they're concerned, you could have backed out of the deal.

For example, I don't have $300k. But I can say to you "yeah, sure, I'll buy your domain for $300k".

While that may be a verbal contract, history has taught us that those are virtually impossible to enforce.

When you're dealing in the six figures, that is no time to be screwing around, when the only proof of a deal is hearsay.

In order to prove to them that you're serious, you need to sign on the dotted line.

Having not done that, it would be easy for you to say "I changed my mind". While that may not have been your intention, they have no way of knowing that.

Since the guy with the $10k higher offer was able to commit himself to the deal by signing the papers, that's what got him the domain.

I think it's perfectly reasonable. Part of their role as a broker is to ensure a smooth transaction. And they're just doing what they've got to do.

 

[Bill F.]

Renegging on a verbal contract for a few extra dollars is not reasonable or ethical, and they have been enforced in court. If there's an email record, that makes it easier. If they were worried about the buyer not following through, they could have easily said there will be no commitment until the papers are signed. I would be wary of doing business with anyone who thinks it's OK to break a verbal agreement just like that.
I've lost count of the "straight-up" guys I've seen who have screwed people over, and domaining in general has a bad record with this kind of stuff.

Would be nice if Domain Holdings responded and clarified their position.

 

[jstewart]

This sounds like a tough situation for everyone involved,

That said, Domain Holdings is by far one of the most-stand up, ethical organizations in industry. I will go out on a limb and say of the dozens and dozens of companies in this space I've dealt with, Domain Holdings is in the top#3 for being what they say they are. I would recommend this company to anyone.

 

[Dale Hubbard]

I recently had a bad experience with them. I spent hours with the broker, working on the midnight(1AM - 4AM) of my time(I am from China), finally I agreed the deal(a deal over $300k) with one of their brokers, but I didn't sign the agreement with them because I was tired. When i wake up, emailed the broker for how we want to send the payments and he get back to me that deal is gone because they received a better(10k more) offer. I asked why, their response is quite unreasonable:

[2012/6/28 20:40:06] William Lin: We have an agreed deal [NAME REMOVED]
[2012/6/28 20:40:48] NAME REMOVED: alll deals are pending until we have signed paperwork from buyer and seller
[2012/6/28 20:41:10] William Lin: so you simply back out the deal because you received an higher offer?
[2012/6/28 20:41:26] NAME REMOVED: yes, without paperwork, that is correct.

That would be my experience with them, anyone else have similar experience?

From what you say, it looks like the broker asked you to confirm and sign the deal before you went to sleep. Is this the case? You're only posting the exchange you had with him after it went sour. To make the picture complete, you'd need to post some detail of the exchange you had at the time you agreed the deal.

 

[Theo]

Moral of the story: when about to sign a $300k deal, have a Red Bull.

 

[Bill F.]

From what you say, it looks like the broker asked you to confirm and sign the deal before you went to sleep.

I missed this part: "alll deals are pending until we have signed paperwork from buyer and seller"

If that was said clearly before, then there's nothing to discuss.

 

[Domonetise]

If I spent 3 hrs thrashing out a $300k deal, i'm dam sure I wouldn't sleep until I was the rightful owner, even if it took another 3 hrs. If you snooze, you loose..

 

[TheAlien]

Sorry but I've closed a nearly six figure deal with them before so they know I am a serious buyer, and I closed a $500k deal with someone else which they know that too. Here is the message before those post above:

[2012/6/28 20:38:26] [NAME REMOVED]: hi william
[2012/6/28 20:38:34] [NAME REMOVED]: we have sold this to [NAME REMOVED] at 14,800 per name
[2012/6/28 20:38:43] William Lin: No you cannot do that
[2012/6/28 20:39:04] [NAME REMOVED]: no paperwork signed william, i told you first come first served
[2012/6/28 20:39:10] William Lin: It is a first come first serve, we agreed
[2012/6/28 20:39:20] [NAME REMOVED]: that is true, but no paperwork
[2012/6/28 20:39:34] William Lin: If you are doing so that's fine, I will spread the word and no more business between us
[2012/6/28 20:39:47] [NAME REMOVED]: i sent it to you yesterday and you did not complete it, i am obligated to perform on behalf of my client
[2012/6/28 20:39:50] [NAME REMOVED]: thank you

I think the matters is they do have agreed offer from me and they reach to another buyer, try to sell higher to make more money. From what they say, even I sign the agreement, they can still sell to another party though as seller didn't sign his part. That's the point.

 

[TheAlien]

Sorry, it is much more than 3 hours, many hours from the day before and 3 hours from the day that things happen. I thought I'd be no problem with them before that sign the agreement when I wake up.

 

[Dale Hubbard]

Nothing you've just posted would indicate that the broker isn't acting in good faith. You need to post the exchanges THREE HOURS prior to the above, if you think you have a case to make. What was said BEFORE you went to sleep?

 

[Theo]

Actually, this conversation between the two parties shows there is nothing that the broker did wrong. If you buy something, you either pay or you sign an IOU.

 

[ksinclair]

What is the domain?

 

[Tia Wood]

[2012/6/28 20:39:04] [NAME REMOVED]: no paperwork signed william, i told you first come first served

There you go.

I'm sorry you lost on a sale but it seems pretty clear cut to me. First come, first served, no paperwork signed = freedom to choose whoever they want at anytime. Unfortunately that is what happened.

 

[TheLegendaryJP]

Is it just me or who else wants to know what the heck is being bought here heehee

Considering the state of the market that must have been some group or made up something traffic generating.

 

[Stian]

I see most of you vote for DomainHolding's favor here, but I'd like to see any one of you agreeing to buy one of my names and the next day, when you ask for payment instructions, I have sold it to someone else because they offered more. You would not do business with me again (oh, I can see the flaming threads already .. ).

I definitely understand William's frustration. We all make a lot of agreements via e-mail, phone, Skype, forums etc. and most of the initial agreements are made without actually signing any paperwork.

 

[allanh]

Maybe what DH doing is not ILLEGAL, but that is different from having good BUSINESS ETHICS.

A verbal agreement, while not legally binding, should be adhered to create trust and hence possible future business. Gaining an extra 10K (and whatever DH is getting from the commission) is definitely not worth tarnishing your reputation.

 

[Stian]

Maybe what DH doing is not ILLEGAL, but that is different from having good BUSINESS ETHICS.

A verbal agreement, while not legally binding, should be adhered to create trust and hence possible future business. Gaining an extra 10K (and whatever DH is getting from the commission) is definitely not worth tarnishing your reputation.

Exactly! One of the most important things in this biz is to nurture your established business relations. I'm sure William won't be first in line to do business with DH after this.

 

[Domonetise]

I see most of you vote for DomainHolding's favor here, but I'd like to see any one of you agreeing to buy one of my names and the next day, when you ask for payment instructions, I have sold it to someone else because they offered more. You would not do business with me again (oh, I can see the flaming threads already .. ).

I definitely understand William's frustration. We all make a lot of agreements via e-mail, phone, Skype, forums etc. and most of the initial agreements are made without actually signing any paperwork.

I'd just like to point out that I vote in favor of common sense. I can't understand why one would spend so much time and effort on a $300K deal only to suspend proceedings without the paperwork being completed. After all, the deal was done and dusted, so why delay the paperwork?

I can't comment on the etiquette of the domain industry as I'm a newbie. I also understand William's frustration, but that frustration was born out of procrastination.

>> Originally posted above:

"Nothing you've just posted would indicate that the broker isn't acting in good faith. You need to post the exchanges THREE HOURS prior to the above, if you think you have a case to make. What was said BEFORE you went to sleep?" <<

That would be helpful to everyone to get a complete picture of what happened.