Is there room for a new UK auction platform?

DaveP · Apr 6, 2013

I've had this idea for a while and the more I think about it the better it sounds. Please do tell me if I am crazy though.

The idea is for a reverse auction platform for selling UK domain names. The format would be so that users can create an auction, set a start date and end date, then set the starting price and the rate at which the price drops and thus the lowest selling point. If you have ever seen the following thread you'll understand how this format works:

http://www.acorndomains.co.uk/domai...e-letter-domain-kkk-co-uk-only-one-pound.html

I feel this idea has the following two distinct advantages over the traditional bid based auctions:

Increased sale prices because the risk of losing an auction will feel far greater, thus enticing buyers to hit purchase and snap up a domain for perhaps a higher price than they anticipated simply out of fear of losing it.
Shill bidding will be non-existant for obvious reasons.

I honestly feel an auction platform with this format can work and can improve the market for us all. If this was built a lot of effort in promoting and educating end users on domain values will also go into it.

What do you all think? Have I gone mad? Am I barking up the wrong tree?

Many thanks in advance!

GreyWing · Apr 6, 2013

I am always a big fan of this type of auction. Quite funny you should mention it as someone just fired it up this week on another site.

Problem is that if sellers set the reserve too high, then nobody will visit the sites as little chance of getting a bargain. Domainlore is fantastic in that domains do sell, not just being dumped in its inventory.

Problem you'll have if you don't have all the right safeguards is sellers falsely bidding when domains get too low. Denys puts a lot of effort into safeguards, you also have to be sure because if you name and shame someone falsely then you could be in trouble.

foz · Apr 7, 2013

http://en.wikipedia.org/wiki/Dutch_auction

RobM · Apr 7, 2013

I did this with DNCountdown. It sold a few domains but wasn't popular.

DaveP · Apr 7, 2013

Thank you all for your input so far.

Skinner · Apr 7, 2013

Denys really really does go to the extreme with fraud, and took a lot of fire in the early days and still does for his policy of naming and shaming.

Denys has a big enough portfolio and reputation to take on heavy fire, I'm not sure many others could take such a battering and not cave in.

bulkcorn · Apr 7, 2013

Great way to sell! If sellers are given the option to set the lowest level the price can drop to, they would not need to place false bids to claim their domain back.