![]() ![]() To summarize, I’d say most commission rates today are fair. I think Afternic’s sliding-scale commissions on this type of sale are fair. Second, they have to split this commission with their partners.Īnd that reach? There’s no way an individual domainer could replicate it. First, as with marketplace sales, these platforms had to put in the work of getting partners on board, creating and managing the tech, etc. It also reduces friction because buyers can purchase the domains just like a new registration, getting the domain in their account within minutes.Ĭurrently, Afternic charges 20% on sales below $5,000, 15% of the amount between that and $25,000, and 10% of the amount above that on these sales. This is hugely beneficial to domain sellers - it gets your domains in front of domain buyers at the exact moment they are searching for a name (or your name specifically). I don’t know if this justifies their commission rates, but they are doing something extra to deserve a bigger cut.Īfternic and Sedo offer services that syndicate your domains to registrars and other partners. BrandBucket and Squadhelp (premium listings) create logos and advertise the domains on spec, and bring buyers to the table. Some brandable marketplaces charge more but also do more. I think 15% is reasonable for a marketplace like this. Sure, now those sales don’t require much incremental work, but creators of marketplaces deserve rewards. You have to bring both buyers and sellers to a marketplace. Exhibit A: all those startups that tried to replicate Sedo that failed. They built a two-sided marketplace, which is a lot of work. ![]() People sometimes complain about Sedo taking a 15% cut of a marketplace transaction “because all they had to do was take the payment and process the transfer.” If someone lands on a marketplace website, finds a domain, and buys it, the marketplace deserves a big cut. Remember that the marketplace has to handle lots of negotiations that never close. If the marketplace negotiates, then something more like 15%-20% makes sense. When the domainer does the negotiation, I think 10% is still fair. These are the ones with a negotiation, such as a make offer lander. There’s another type of landing page sale. I think a 10% commission on buy now lander sales is fair. And it will be a $0 commission if the transaction doesn’t close.Īdd to this the payment processing fees and the risk of fraud, and the margins get eaten up fairly quickly. Dan.com has reached out to the person three times (including several phone calls) to try to close the deal, all for a $135 commission. The other is one for just $1,500, in which the buyer isn’t paying. The customer paid immediately but took over a month to transfer the domain, requiring Dan.com to make repeated reminders. I’ll give two recent Dan.com transactions as examples. With a buy now transaction, all the aftermarket has to do is process a payment.īut there’s more to it than this. The domainer effectively brought the buyer. With this in mind, here’s my take on commissions.ĭomainers think the value-add of sales platforms is minimal when a sale takes place on a landing page. GoDaddy charges considerably higher commissions than Dan.com’s, and customers are concerned that these fees will increase in the future. There’s been a lot of talk about domain transaction commissions since GoDaddy announced it is acquiring Dan.com. ![]() Then your next thought is about how you’ll only get 80% of the selling price. You’re excited to get an email saying you sold a domain. I think it’s 10%-20% depending on the type of sale. ![]()
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