Going forward, customers who have placed a backorder on the same name will have the opportunity to bid on the name at a private auction (only for backorder holders). As always, the backorders can be re-assigned if you did not successfully win the auction or capture the backordered name.
first of all: if you go to the backordering page, click the 'Domain Alert Pro Investor's Edge' tab in the info box, click the 'How does this work?' link, there's a popup with an explanation of 'How does this work?', which still states: 'Select the names you want to capture directly from the list, and once youâve selected that name, no one else may do so. '... you may want to change that.
Secondly, what really bothers me is the policy of the fee being non-refundable. For people who do not backorder often and in large quantities, this is not a big issue.
But for those who do backorder in large quantities, even with a discount on backordering, available to those with an Investor's Edge subscription, with the new policy, the no-refund is even more of an issue.
In the past if I had backordered a domain, I did so secure with the knowledge that if Goddady did secure the dropping domain, I would be the new registrant.
Now, if I backorder, and there are competing backorders for the same domain, I have several options.
a) Bid to win, and pay more for the domain.
b) Not wanting to compete in auction, I just forget about it. With the name going into private auction I will end up paying more than I want to. So now I'm left with an extra credit that I would not have been stuck with under the old policy. In addition, my net success on catching domains will drop accordingly.
or..
c) I can backorder more domains. If in the past I set aside a budget for backordering 20 domains, with the goal to catch 2 or 3 domains, (assuming Godaddy has a 10%-15% success rate, against other dropcatchers) now knowing I'm up against competition, I can backorder let's say 40 domains, forget about the 2 or 3 that go into auction, and win for myself 2 or 3 that have no competing backorders. Doing so, I now have twice as many non-refundable backorders.
This new policy will increase the number of backorders at Godaddy 2 - 3 fold, if not more. And being non-refundable, think about this cash windfall just sitting there gaining interest for Godaddy! Basically Godaddy has figured out a way to get a nice interest free loan, and make interest off of it. Nice.
And you thought the economy was bad.
I can understand Godaddy's new policy from a business point of view.
Why not expand their revenue streams when it can be done so easily, and is already being done so by other dropcatchers? However, the backorder fees just piling up in the Godaddy vaults, with no commitment to a refund, all the while gaining interest, seems overly greedy.
:lol: <- that's not me laughing, that's Godaddy, laughing at you, all the way to the bank...
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