Yes, this is something we have done at Mobility for quite some time and it has worked out well...for the seller and Sedo.
Actually, we have perhaps been doing this for 2 years or so.
The seller will most often get additional bids and bidders. I have been fortunate a few times to win some of these auctions but have lost most to higher bidders.
NOT ONCE am I aware of the winner not paying.
And never has Sedo interfered with this modality.
It is not a click fraud issue. It is not shill bidding. It is a legitimate offer placed on a domain that the owner elects to accept that offer and sends it to auction.
With that said, I would like to point out a couple of observations.
And people looking for and bidding on .mobi names are into this niche. Therefore, I am assuming that they are more serious about their buying that particular extension than most.
At the same time, we have caught plenty of bogus bidding schemes going on running the prices up or simply a bullshit name with a $35,000.00 start.
In 2007, I had 11 auctions at sedo not paid. 2008 was a little better (I think 7) and I have already had one this year. Never was these non-payers on a .mobi.
Have a subsection of send to auction can work very well if the person making the offer clearly understands that he is essentially offering to buy the name at $60. And, at the same time, the seller is willing to accept the offer of $60 and elects to send it to auction.
Everyone needs to understand the plus and minuses to this. And the reason I point this out is because of a situation played out here on DNF on this very issue (sort of).
Buyer - by making the offer you commit to purchasing the domain at $60 should no one else bid.
Seller - by accepting the offer of $60 and sending the domain to auction you are committing to accepting $60 for the domain name should no one else bid.
About a year or so ago, an offer was made for a domain here on DNF. The seller turned it down.
Later, that seller sent the same name to auction.
The person who made the original offer on DNF ended up bidding on the domain while it was on auction and won the domain for a significantly lower price than his original bid.
The seller, knowing this, refused to sell the domain to that buyer at the winning bid.
The seller did not transfer nor comply with the contractual agreement with Sedo.
Essentially, it was the seller who breeched the contract.
Both Sedo and DNF ended up getting involved with this dispute here on DNF.
The reason I point this out is because of all the BS and Bogus bidders (and schill bidders) out there.
And by out there I also mean in here - on DNF.
When a deal goes sour, what action does Sedo take and what action does DNF take?
You are talking about bidders and sellers who are both members of DNF and Sedo. So who has responsibility.
Another issue is the pure BS bogus offers that are via PM.
To eliminate this and to discourage any one from dishonest deeds (that will never be completely erased)
the person making the offer must state so via the thread and NOT VIA PM.
This will allow more transparency and also allow for better monitoring of both the seller and the bidder. In the end, when a deal does go sour, we will know who is the culprit.
No one else would have to disclose if they are bidding or not. The only thing the person who made the initial offer would have to do is post in the thread that he made an offer on NameOfDomainHere dot com for all to witness.
This would allow all members to see who made the initial offer and who accepted the offer should any dispute arise.
Frankly, we never have had to deal with disputed deals But I have already seen too many here. And I have often times (along with other members) asked for a name and shame section on dnf. At least we will know in 7 days who needs to be held accountable it no one else bids - will the seller acept the fact that the domain sold for the minimum and transfer the domain? and will the person making the initial offer follow through and pay.
