Higher Minimum Bid Auctions at NameJet
If you frequently bid on NameJet auctions, you’ve probably noticed quite a few domain names that are pre-release that have a price minimum bid than the standard $69 minimum bid. Up until last week, I assumed that you couldn’t bid on those auctions unless you placed a backorder that was equal to or greater than the reserve.
Last week, I back ordered a domain name that appeared to have a $149 minimum bid. There was one other person who appeared to back order it before the deadline at the same $149 bid price. When the domain name went to auction, I was expecting to compete with one person, but lo and behold, there were additional bidders at below the $149 price.
I reached out to NameJet GM Matt Overman for some clarification, and he let me know the higher price was simply a reserve price. This means you can bid lower than the minimum posted amount without any obligation (as long as you bid above the standard $69). If nobody bids the reserve price or higher, the domain name won’t get sold to you for the $69 minimum.
What does this mean for you?
- If you think you’re the only bidder when you bid the reserve, there might be others who bid lower but can outbid you at auction.
- You can’t see how many backorders there are under the posted price prior to the auction.
- You can safely bid the $69 minimum even if the posted price is higher without obligation.