Domain Appraisal Scam
Excited because you received an interest in one of your domain names? Don’t be if it looks like the one below, it’s a scam.
Here is how I suspect it works:
The low life looking to make money from unsuspecting people contacts the three companies below, we’ll call him Affiliate Dog.
Affiliate Dog contacts these domain appraisal companies and works out a deal where he can increase the number of appraisals they receive. They would then negotiate a percentage of each referral. Here is a list of prices charged for this service:
- Sedo.com charges anywhere from $29 to $49 per domain appraisal.
- Pedma.com is now shut down (see more about this below), but it was charging $22.95
- Accuratedomains.com charges anywhere from $27 to $87 for each appraisal.
With the deal in hand, they then obtain a massive list of domain names and associated owner information (easy to do) and tell the domain appraisal companies that anyone obtaining an appraisal for any of the follow domains (from their massive list) is a referral. The appraisal companies agree and the scam starts.
Affiliate Dog then sends out an email to the owner of each website on the list, here is a copy of the email I received:
Hello,
I came across your domain name [snip] and I would be interested in buying it from you.
Here is my offer, you have to send me a professional appraisal from one of the following companies. and I will pay you 85% of the appraised price.
For payments under $2000 I prefer to use paypal. And for larger amounts of money I prefer if we used escrow.com
I accept appraisals from any of these companies:
- sedo.com
- pedma.com
- accuratedomains.comIf you already have an appraisal from one of those companies please forward it to me, and we will do business.
Regards,
James Johnson
The excited website owners then go to one of these domain appraisal services and get their website appraised. They then forward that to the Affiliate Dog and he chalks up another referral. Now that I think of it, he may use your appraisal as proof that he referred you.
Of course, you’ll never hear back after you submit your information.
I took a look at each of the websites and sedo.com is the only site I have heard of before. When I visited Pedma.com, I received the standard parked page meaning the site was taken down. Here is what the site claimed (from cache):
Welcome to Pedma Domain Appraisals,
Your number one stop to get the most accurate domain appraisals on the web!
We are so confident in our service, that we are able to offer you the industry leading guarantee.
“If you aren’t able to sell your domain for the appraised price within 6 months we will either refund you your money, or buy the domain ourselves! It’s your choice!”
How are we able to offer such a great guarantee?
Because we have over 70% of our customers sell their domain name in less than 6 months. So we know our research and analytics are working.
Why should you get a professional domain name appraisal?
* So you don’t end up losing potentially $1000′s of dollars underselling your domain below the market value.
* So you don’t try to oversell your domain and waist time and money on auctions and advertising.
* So you have a professional domain appraisal when you try to sell your domain. Having a trusted domain appraisal makes selling your domain that much easier!After you make your first purchase we will email you your Pedma Account log in information. Once you are logged in you will find all your domain appraisals neatly organized (including appraisal reports, and appraisal banners). We make it easy to keep track of all your appraisals!
Research shows that pedma.com is owned by McDOW, Billy support@pedma.com
366 Kingswood Dr, Bedford, Nova Scotia B4B 1T8, Canada 9024950112
Another idea on the scam could be that Affiliate Dog didn’t contact all the domain appraisal companies in the email, but instead created pedma.com, made the price for appraisals lower than the rest and was simply sending people to his own domain.
I’ve read that pedma.com was shut down by hostgator.com and leads me to suspect the worst – that being, appraisals purchased at pedma.com were never delivered or were inaccurate and automated.
Whatever the take is on the domain appraisals, it is not good. What I’ve mentioned above is my view and may not reflect what is really happening – but it’s my best guess, so be careful!
I got the same email. When doing some research I came across a blog where the guy has already done a ton of research on what is going on. I think he concludes it is Pedma.com that is the problem.
Check it out. Very interesting.
Here is one I received today…
i had been scammed by ( Whitham Daniel ) it was a similar to the way talked about above started of with
——————————————————————————————–
Hello,
Are you interested in sale of your domain? Please name your price.
We are in hosting and domain business. But we are very interested in
Internet names and web sites too.
If you have other domains for sale feel free to send your list.
Looking forward to do business with you.
Regards,
Daniel Whitham
CEO
Net Invest LLC
========================================================
NOTICE – This communication may contain confidential and privileged
information that is for the sole use of the intended recipient. Any
viewing, copying or distribution of, or reliance on this message by
unintended recipients is strictly prohibited. If you have received this
message in error, please notify us immediately by replying to the message
and deleting it from your computer.
========================================================
———————————————————————————–
after say make me an offer the reply was:
——————————————————————-
Can you accept 1,000 USD?
Do you sell domain with a web site or just the name?
Domain without content is ok with me. Web site is not necessary.
Have you had your domain names evaluated in the past? I mean domain appraisals. Without valuation we cannot be sure in the sale price. It’s very important for me in terms of reselling too. But we must engage a valuation company with REAL manual service. So I will only accept valuations from independent sources I and my partners trust.
To avoid mistakes I asked domain experts about reputable appraisal companies.
If, for example, the valuation comes higher you can adjust your asking price accordingly. It will be fair. I also hope you can give me 12% – 15% discount.
After you send me the valuation via email (usually it takes 1-2 days to obtain it) we’ll continue our negotiations.
What is your preferred payment method: Escrow.com, International wire transfer, PayPal.com or something else?
Hope we can come to an agreement fast.
Looking forward to your reply.
———————–
end result is:
————————-
Your valuation looks reasonable enough and I agree with it.
To get a fair value I ordered another valuation from different site.
Since it’s not smart to rely on one valuation only.
I’ve got the figure already. It’s very close the result of your valuation.
Of course, I expected a lower estimation :-).
Anyway, now I see from different sources that your name has a good
potential.
My partners told me about ICANN rule that prohibits domain reselling before
two months from registration. I did not want to wait for two months.
Here is my solution:
I search for a buyer and get 14%-15% upon sale. I wrote about reselling in
first emails.
Of course, I don’t require exclusive rights to sell. You can try to sell at
the same time. If I find a buyer faster I get my 15%.
I’ve already bought opt-in lists to promote your domains. I invested about
$150 in these opt-in lists.
I was already contacted by an individual regarding your domain. His partner
was interested in purchasing. He asked for valuation certificate. I’ve
already sent him your appraisal link upon receiving his request.
Of course, I cannot list your names with brokers and auctions since I’m not
the owner.
I’m going to use your valuation in my promotio? Is it ok with you?
I think if you list your domains with several brokers and auctions it will
help us. Many buyers prefer to buy through auction sites or domain brokers.
Moreover, many brokers help with transfer. I’m not the owner so I can only
use my database to promote your domains and I cannot list. As the owner, you
can list your domains on eBay, Amazon and DomainExplorer. Please don’t forget to send your
auction links.
If you list domains with DomainExplorer.org we can avoid the brokerage fee
(10% at Sedo.com). DomainExplorer does not charge commission upon sale
and offers free escrow. So we can save up to 10%-15%.
———————
DomainExplorer.org is a SCAM!!! The letter is designed to direct you to the scam using associating trusted names such as Amazon and eBay!
Thanks I just got the scam email today.
from bortfeld@domainsecondhand.com
to leo
date Sun, Dec 20, 2009 at 6:15 AM
Hello,
We buy and sell domains and web projects. What is your price for the
domain?
If you have other domains for sale feel free to send your list.
Looking forward to do business with you.
Regards,
Joseph Bortfeld
President
Domain Investing & Reselling
========================================================
NOTICE – This communication may contain confidential and privileged
information that is for the sole use of the intended recipient. Any
viewing, copying or distribution of, or reliance on this message by
unintended recipients is strictly prohibited. If you have received this
message in error, please notify us immediately by replying to the message
and deleting it from your computer.
========================================================
next email:
Dear Leo,
600. Ok
I’m also interested in **[another domain i had that was a much higher price]**
Do you sell domain with a web site or just the name?
Domain without content is ok with me. Web site is not necessary.
Have you had your domain names evaluated in the past? I mean domain appraisals. Without valuation we cannot be sure in the sale price. It’s very important for me in terms of reselling too. But we must engage a valuation company with REAL manual service. So I will only accept valuations from independent sources I and my partners trust.
To avoid mistakes I asked domain experts about reputable appraisal companies.
Please check this blog with suggestions from other sellers and buyers:
domainexplorer. org/Archive-09-2009/91462735.htm
If, for example, the valuation comes higher you can adjust your asking price accordingly. It will be fair. I also hope you can give me 12% – 15% discount.
After you send me the valuation via email (usually it takes 1-2 days to obtain it) we’ll continue our negotiations.
What is your preferred payment method: Escrow.com, International wire transfer, PayPal.com or something else?
Hope we can come to an agreement fast.
Looking forward to your reply.
The scammer (Domainsecondhand. com) , iframe ing my site now(dndboard. com).. stup!d Lazy scammer.
Hi,
I received the following email, which is very similar to the ones above. The end result was that I got my domain names valued by Sedo and he wasn’t happy with the valuations and asked me to get them valued by another appraisal company.
The initial email is shown.
Hello,
We buy and sell domains and web projects. What is your price
for the domain?
If you have other domains for sale feel free to send your list.
Looking forward to do business with you.
Regards,
Daniel Friedman
President
Online Investment & Consulting LLC
======================================================== NOTICE – This communication may contain confidential and privileged information that is for the sole use of the intended recipient. Any viewing, copying or distribution of, or reliance on this message by unintended recipients is strictly prohibited. If you have received this message in error, please notify us immediately by replying to the message and deleting it from your computer.
I received a similar email today. I told the guy the domain was not for sale. Then he counter offered $5k. But only after an
appraisal from one of the companies he referred.
When something is to good to be true it normally is…
I got the same email offering $5000. What a joke is anyone in the world honest anymore???
…..I received the email just like stephen on August 19th, 2009
I received this string of emails yesterday and today.
——– Original Message ——–
Subject: Re: antlerblog. com (sent 05/17/10)
Date: Tue, 18 May 2010 11:37:28 +0400
From: Young
To: [edited]
Can you accept 9,000 USD?
Do you sell domain with a web site or just the name?
Domain without content is ok with me. Web site is not necessary.
Have you had your domain names evaluated in the past? I mean domain appraisals. Without valuation we cannot be sure in the sale price. It’s very important for me in terms of reselling too. But we must engage a valuation company with REAL manual service. So I will only accept valuations from independent sources I and my partners trust.
To avoid mistakes I asked domain experts about reputable appraisal companies.
Please check this blog with suggestions from other sellers and buyers:
[snip]
If, for example, the valuation comes higher you can adjust your asking price accordingly. It will be fair. I also hope you can give me 12% – 15% discount.
After you send me the valuation via email (usually it takes 1-2 days to obtain it) we’ll continue our negotiations.
What is your preferred payment method: Escrow.com, International wire transfer, PayPal.com or something else?
Hope we can come to an agreement fast.
Looking forward to your reply.
—– Original Message —–
From: “[edited]>
To:
Sent: Tuesday, May 18, 2010 1:22 AM
Subject: Re: antlerblog. com (sent 05/17/10)
> Joseph,
>
> My current asking price is $ 10,000. Let me know if you are interested
> in purchasing it.
>
> Thanks,
>
> Keith E[editied]
>
> On 5/17/2010 2:34 PM, young@elitenethosting.com wrote:
>> Hello,
>>
>> How much do you ask for this domain for sale?
>>
>> Our company buy and sell domains and developed sites. If you have other
>> domains for sale feel free to send your list.
>>
>> Looking forward to do business with you.
>>
>> Regards,
>>
>> Joseph Young
>>
>> Vice President
>>
>> Elite Hosting Solutions LLC
young@elitenethosting.com :
Can you accept 5,000 USD?
Do you sell domain with a web site or just the name?
Domain without content is ok with me. Web site is not necessary.
Have you had your domain names evaluated in the past? I mean domain appraisals. Without valuation we cannot be sure in the sale price. It’s very important for me in terms of reselling too. But we must engage a valuation company with REAL manual service. So I will only accept valuations from independent sources I and my partners trust.
To avoid mistakes I asked domain experts about reputable appraisal companies.
Please check this blog with suggestions from other sellers and buyers:
[snip]
If, for example, the valuation comes higher you can adjust your asking price accordingly. It will be fair. I also hope you can give me 12% – 15%
discount.
After you send me the valuation via email (usually it takes 1-2 days to obtain it) we’ll continue our negotiations.
What is your preferred payment method: Escrow.com, International wire transfer, PayPal.com or something else?
Hope we can come to an agreement fast.
This is one I got today for the domain pcroomhire.com. These people are pretty smart, they go after domains that may have some value.
===========================================
Dear $$$$$$
Thank you contacting us, I hereby confirm we have received your interest in selling the requested domain.
We find your asking price interesting and are open for a negotiation.
As an industry standard with all domain transitions, we require 2 things in order to initiate a purchase:
1. A proof that you are the legitimate owner of the domain.
This can either be:
- A screenshot from your domain registant; you may blank out all infomation, except the domain.
- An url to your domain with a custom message proving you are the legitimate owner of the domain.
2. An officially certified domain appraisal, not older than 3 months.
The domain valuation determine a fair selling price based on accurate valuation analysis.
If you haven’t made a certified appraisal for this domain yet, we recommend Praisal, as the most trusted and cheapest domain appraiser in the domain broker industry. Get your appraisal here
When you have both things, please forward them to me and we start the transition process.
Looking forward hearing from you again.
Sincerely
Martin Ruck
Daniel Goncalves tried to scam me with his come-ons and offers of higher money since his suggested domain appraiser raised the value. I bought it hook line and sinker, except, I charged it to American Express and they reversed the charges.
I feel special. He offered me 35,000 USD
I just got this one yesterday 7/17/2010, you can see that they push one domain appraisal service.
—————————————————————————————-
—–Original Message—–
From: Daniel Sullivan [mailto:sullivan@webhostingandmail.com]
Sent: Saturday, July 17, 2010 2:24 PM
To:
Subject: Re: allflagsdirect. com (sent 07/17/10)
Hi!
Can you accept 2,900 USD?
I have a 15,000 USD budget for 8-10 domain names. Have you had your domain names evaluated in the past? Without a valuation certificate we cannot be sure in the sale price. Moreover, my accountant and tax services always ask for valaution certificates :-). On the other side, it’s very important for me in terms of reselling too. Of course, we must engage a valuation company with a REAL manual service. So I will only accept valuations from independent sources I and my accountant trust.
To avoid mistakes I asked domain experts about reputable valuation companies. Please check this blog with suggestions from other sellers and
buyers:
domainexplorer. org/Archive/[snip]
If, for example, the valuation comes higher you can adjust your asking price accordingly. It will be fair. I also hope you can give me 12% – 15% discount.
After you send me the valuation via email (usually it takes 1-2 days to obtain it) we’ll continue our negotiations. Do you sell domain with a web site or just the name? Domain without content is ok with me. Web site is not necessary.
What is your preferred payment method: Escrow.com, International wire transfer, PayPal.com or something else?
Hope we can come to an agreement fast.
Looking forward to your response.
—– Original Message —–
From: me
To:
Sent: Saturday, July 17, 2010 4:59 PM
Subject: RE: allflagsdirect.com (sent 07/17/10)
> Hi
>
> We are now asking $3,000 US$
>
> Thanks
>
> —–Original Message—–
> From: sullivan@webhostingandmail.com
> [mailto:sullivan@webhostingandmail.com]
>
> Sent: Saturday, July 17, 2010 8:33 AM
> To:
> Subject: allflagsdirect.com (sent 07/17/10)
>
> Hello,
>
> We have an offer for your domain name. What is your asking price?
>
> Our company invests in domains and developed sites. In case you have a
> list
> of domains for sale, please send the list with prices in plain text.
> We prefer “dot coms”, “dot nets” and easy-to-remember names.
> Regards,
>
> Daniel Sullivan
>
> MBA, MSCE
>
> Founder
>
> Web Hosting & Domain Investment LLC
I got almost the identical one as Al on August 1, 2010, except I was offered 12000 USD and the purchaser’s “budget” was “35000 USD”. He also used a different name.
I told him I would use SEDO as an appraisal company, to which he replied that SEDO was unacceptable and gave a bunch of nonsensical reasons.
When I told him that since all he needed to get an appraisal was the domain name and he didn’t need me for that, and, therefore, he was free to use whatever company he liked, I never heard from him again.
Currently being send to the following link
domainexplorer. org/ Archive/ 5716924.htm
(remove spaces)
Hosted by DomainsByProxy. com
Which hides the registrant. Is there any way to make life more difficult for the people that send these scams? Contact the hosting agency or any other fraud investigation office?