information New Afternic & GoDaddy Commission and Pricing Structure

[Nitindomains]

Received the following mail just minutes back:-

Hello Member,

Good news! We’ve made it easier for you to list your domain in one place and reach a broader audience of buyers to increase your sales velocity and income.

How are we making things simpler?
• Reduce time spent in pending review, domains are listed immediately after passing the required integrity checks
• Reducing commissions on higher-priced sales to increase your earnings
• Lowering minimum sales price and minimum offer amounts so you can list more domains and earn more money

We’re also taking the guesswork out of promoting your domains. Domains with fast-transfer enabled are promoted through the Afternic Premium Network automatically. Domains without fast-transfer are placed in the Afternic Standard Network.

Know that you can always list a domain without fast-transfer and then enable fast-transfer later. When you do, it jumps from the Standard Network to the Premium Network, which includes 8 of the top 10 registrars, gives you the broadest reach, and exposes your domain to over 75 million monthly search queries.

We also want our fees to be simple and straightforward, so they’re now based on your domain sale price. The three commission tiers look like this:
Sale price of domain >>> Commission fees
$0-$5,000 >>> 20% ($15 minimum)
$5,000-$25,000 >>> $1,000 +15% of amount over $5k
$25,000+ >>> $4,000 + 10% of amount over $25k

To help you list and sell more domains inventory, we lowered our minimum sales prices. The buy now minimum is only $50 (versus $250), and the minimum offer amount decreases to only $20 (from $250).

These changes take place Early April new listings. In the next [3-4] weeks, we’re converting existing listings over.


In a Separate mail notifying the change in Pricing Structure @ GD Aftermarket, the mail states the following:-

Please note we're setting a minimum of $50 for Buy-It-Now Auctions and $100 for Premium listings. We're also setting a $20 minimum listing price for 7-Day Auctions and Offer/Counter-Offer domain listings.

Along with the changes to new listings moving forward, we'll be converting existing listings over to the new system over the next 3 to 4 weeks for an early April launch.

• If your domain is below the new minimum offer price, we'll bump the minimum offer up to $20 for 7-Day Auctions and Offer/Counter-Offer listings.
• If you have a Buy-It-Now Auction listing priced below $50, we'll switch it to an Offer/Counter-Offer listing with a minimum price of $20.
• If you have a domain that's listed as both a Premium Domain and a Buy-It-Now Auction, we'll consolidate it and use the higher of your two price points.

If you don't want us to change your listing prices automatically, simply update your domain pricing manually before March 31st, and it will default to the new listing rules when we roll out the new structure.

 

[Nitindomains]

So if I'm reading this right, and I just had a $5000 sale a couple of weeks ago, I paid $500. Now that would be $1,750. haha, what idiot came up with this. And yes, that ends up being 35%, when it was 10%, using the $5,000 sale as an example.

No, It would be $1k, i.e., 20% of $5k= $1k.

 

[NameOmnia]

$1,000 +15% of $5k = $1750 commission. That is 35% commission on 5K

So if I'm reading this right, and I just had a $5000 sale a couple of weeks ago, I paid $500. Now that would be $1,750. haha, what idiot came up with this. And yes, that ends up being 35%, when it was 10%, using the $5,000 sale as an example.

Actually no. Giving it a second look it sounds a bit different :

$5,000-$25,000 >>> $1,000 +15% of amount over $5k

15% applies only to the amount over 5000

so for a 5000$ sale you would have paid 1000 ( still a lot more than before though )

and for a 7000$ one 1000 + 300 ( 15% of 2000 ) = 1300

EFFING EXPENSIVE NO MATTER WHAT WE LOOK AT IT

 

[JB Lions]

No, It would be $1k, i.e., 20% of $5k= $1k.

?
oh ok, let me reread it
So $10,000 in the past would be $1,000
now $10,000 will be $1,750

$30,000 would be $3,000 in past
$30,000 now would be $4,500

 

[FusionSpy]

I understand this diffrently eg. if you sell for $6000 that's $1000 commission ( meaning 20% ) and what's over $5000 ( that's $1000 in our $6000 sale) is commissioned with 15% ( so $150 from that $1000 ) that means $1150 for a $6000 deal = %19.1666..... overall and so on, ....

 

[Nitindomains]

?
oh ok, let me reread it
So $10,000 in the past would be $1,000
now $10,000 will be $1,750

Earlier it was 10%,
5,000 x 10% = $500

Now,

20% on sales upto $5k, which includes $5000 amount, i.e,

20% x $5000= $1000.

 

[JB Lions]

Earlier it was 10%,
5,000 x 10% = $500

Now,

20% on sales upto $5k, which includes $5000 amount, i.e,

20% x $5000= $1000.

So now double for most sales, since most are under $5,000

I understand this diffrently eg. if you sell for $6000 that's $1000 commission ( meaning 20% ) and what's over $5000 ( that's $1000 in our $6000 sale) is commissioned with 15% ( so $150 from that $1000 ) that means $1150 for a $6000 deal = %19.1666..... overall and so on, ....

Yep, in the past it would have been $600 now $1150

 

[FusionSpy]

I guess we will all have to overprice our domains to cover this fees :D What bugs me the most is that there will be no "standard" pricing structure ( where it was that 10% if not included in the premium network program) so basically if you have domains listed in standard you won't have any benefits of premium promotion, but you will still need to pay that premium fee ... I guess I'll just have to price every of my domain and include them in premium promotion network for better exposure ... now that will take time.

 

[NameOmnia]

I understand this diffrently eg. if you sell for $6000 that's $1000 commission ( meaning 20% ) and what's over $5000 ( that's $1000 in our $6000 sale) is commissioned with 15% ( so $150 from that $1000 ) that means $1150 for a $6000 deal = %19.1666..... overall and so on, ....

No, it's 3 different commission levels.

Sale price of domain >>> Commission fees
$0-$5,000 >>> 20% ($15 minimum)
$5,000-$25,000 >>> $1,000 +15% of amount over $5k
$25,000+ >>> $4,000 + 10% of amount over $25k

easier to read it this way :

0 - 5000 ( included ) 20%
5001 - 25000 ( included ) = $1,000 +15% of amount over $5k
25001 to infinite = $4,000 + 10% of amount over $25k

 

[morf13]

So if I'm reading this right, and I just had a $5000 sale a couple of weeks ago, I paid $500. Now that would be $1,750. haha, what idiot came up with this. And yes, that ends up being 35%, when it was 10%, using the $5,000 sale as an example.

It should be a flat rate across the board, that's the easiest to remember and competitive rate. 10% was nice, this is insane.

A $1750 commission on a $5k sale?? That's insane!

 

[JB Lions]

A $1750 commission on a $5k sale?? That's insane!

No, fixed the math above, I was reading it wrong. It would be $1,000 now, double tho what it was.

 

[Domainace]

I hate doing numbers before my first coffee. Now with coffee in hand, and caffeine slowly penetrating...

$5,000-$25,000 >>> $1,000 +15% of amount over $5k

That's $1000, which is 20% of the first $5000 of the sale.
Plus....
15% of the amount over $5000.

At no point do the fees exceed 20%. They are still expensive, but most sales will pay a commission between 15% and 20%. That's basically for access to their promotional network. And the fees will probably change again in 6 months.

 

[banners]

This is definitely a bad move on GoDaddy's part. Sounds like time to reconsider some of the other options. What are some better/alternative places that I should look at besides maybe SEDO?

 

[NameOmnia]

I am writing it again because the chaos is still going on..lol..

it's 3 different commission levels.

Sale price of domain >>> Commission fees
$0-$5,000 >>> 20% ($15 minimum)
$5,000-$25,000 >>> $1,000 +15% of amount over $5k
$25,000+ >>> $4,000 + 10% of amount over $25k

easier to read it this way :

0 - 5000 ( included ) 20%
5001 - 25000 ( included ) = $1,000 +15% of amount over $5k
25001 to infinite = $4,000 + 10% of amount over $25k

 

[Calvenor]

Intricacies of what one should give up to feed GoDaddy's appetites aside, it is clear that what comes out of sellers' proverbial pocket is much more than what it was before. As a response to that I totally and irrevocably removed a bit over 60 names from GD marketplace. There are always DNS and otherwise landers one can hope for to produce some result with hardly any fee at all.

GoDaddy? Well, other than being a coupon heaven for new registrations, I say "screw them".

 

[domainbartender]

Isn't anyone happy that they lowered the minimum fee to $15? I am.

 

[Shimmy]

One thing is for sure when companies go on the stock market the fees will keep rising. Like ebays fees did. They need to keep having large growth every quarter.

 

[Electric-Shadow]

Making things simpler? Clearly it's causing people some serious confusion, and eating even more into peoples profits. It's about as helpful for sellers as Rob Ford was for Canada.

 

[morf13]

No, fixed the math above, I was reading it wrong. It would be $1,000 now, double tho what it was.

That's still a big piece of your pie they are taking

 

[equity78]

I think and again just my opinion, I think they were looking at it from the Premium listings was 30% and now we have brought that down. But people who used Afternic got in the registry path for 20% anyway.

The auctions at 10% should have stayed, keep the registry path higher because I do believe that's valuable real estate. Keep the auctions at 10 % and tier the premium network from 20% down to say 12.5%

 

[johname]

Godaddy going for an IPO home run, so got to restructure everything to make the cash cow bigger

 

[joshny]

Couldn't have gotten worse than this

 

[Domainace]

From Afternic: "We also want our fees to be simple and straightforward, so they’re now based on your domain sale price."

I'm sure glad they made it simple and straightforward!:D

Is there an accountant in the house? One who can help us with this simple and straightforward, multi-tiered and controversial pricing structure? Did Afternic hire someone from the IRS to simplify things for them?

 

[JB Lions]

The most simplest way, and I wish any of these places would do it, again, flat rate. No matter the sale amount. 15%, somewhere close to that.

 

[NameOmnia]

Anyone has an alternative solution to Greedy Daddy / Afternic?
As I mentioned before Ebay could be a viable option...

 

[JB Lions]

Anyone has an alternative solution to Greedy Daddy / Afternic?
As I mentioned before Ebay could be a viable option...

Eh, not really good buyers there. I actually kind of agree with this:

At no point do the fees exceed 20%. They are still expensive, but most sales will pay a commission between 15% and 20%. That's basically for access to their promotional network. And the fees will probably change again in 6 months.

I liked the 10% flat rate because it was the best rate out there from the majors. Of course, you can always do it more yourself, cut them out. Use them for the people that use them to find domains but for direct, do it yourself, don't send them off to the other places, like I do now.