information New Afternic & GoDaddy Commission and Pricing Structure

Nitindomains · Mar 10, 2015

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.

Sperry8 · Mar 13, 2015

carob said:
The GD email announces a big improvement for premium listings - the most you will pay now on that is 20%, previously it was fixed 30%

If your reading is accurate, this is great news for me. I almost exclusively use GD Premium to sell names (rather than GD Auctions) and they are now lowering commissions substantially. But that email sure is hard to read and understand. Who wrote that thing?

Sperry8 · Mar 13, 2015

carob said:
That is a very good point.

Currently if you update a Premium Listing price, it takes 24 hours to change on the site. What happens if someone buys it during that period?

This is a risky area since you have authorised GD to just take the domain from your account the second someone pays for it. AFAIK the only safe thing to do (to avoid selling at a previous, lower listing price) is remove the listing. I did that with a domain and it stayed listed. I asked GD what would happen if someone bought it - they said the buyer would get a message saying the domain was no longer avaliable.

GD need to update prices in real time, especially if they are talking about making improvements.

Whenever I update a GD Premium listing price I get the price updated in less than a minute. Why are you seeing it take so long?

Nerevar · Mar 13, 2015

Some domainers do not park their domains, instead they forward the domains a landing page. I would love to see GoDaddy to have a nice, simple and clean landing page that leads to buy now / make offer with a large button. Something like Sedo and DomainNameSales have. I am currently forwarding some of my domains to Sedo, because I am afraid that buyers will be confused by the GoDaddy landing page.

B&J · Mar 13, 2015

1. More will be passed to the buyers.

2. This all progressive calculations will play against the broker long run.

tomcarl · Mar 13, 2015

I didn't get that excited about the 10% decrease in Premium because the flood gates have now been opened. What's the incentive to list in auctions? it's not cheaper anymore. Here comes hundreds of thousands of additional "Premium" domains. Can't wait to see how it's going to be displayed to a potential end user with the new additional inventory.

Name Trader · Mar 14, 2015

@tomcarl - Exactly. There will only be enough space for the top 10 domains, me thinks. Or are they going to rotate them? So your domain which showed up every search for a specific search, might now show up, on about every say fifth search? That is when they are not showing the new gtld's. Or are they going to keep running through the list until they get to the end of the domains for that keyword search? And if they do, then how do they rank them? How to get top of the ranking? With all of us moving to Premium Listings at no additional expense, they are going to be swamped. I can foresee a scenario where this is all going to end in tears. If there are no quality standards for a Premium Listing, and no cost penalty either, its a recipe for a disaster in the making. I could see a situation where it might even be more beneficial to list on GoDaddy Auctions at a Make Offer price, because the domain you entered into their Premium Listings, isn't being listed anywhere. At least this gives you some flexibility over the price, but comes along with additional hassle of actually dealing with low-ball bidders. Aaahhrr... horrible

I also presume these Premium Listings are only good for keyword domains. How do you sell your brandables?

RU · Mar 14, 2015

Nerevar said:
I would love to see GoDaddy to have a nice, simple and clean landing page that leads to buy now / make offer with a large button.

Can you please give a link to see, how it looks.

Nerevar · Mar 14, 2015

RU said:
Can you please give a link to see, how it looks.

E.g. the one that I currently use for forwarding bioprinter.net at Sedo is nice enough. A similar page on Godaddy Auctions looks small and confusing, and I am not sure if it is shown to people who are not logged in.

vegabond · Mar 14, 2015

I don't understand why there is fixed + 10% for higher priced domains? 10% is really good, then why another $4k?

GoDaddy should re-think before applying this structure.

carob · Mar 14, 2015

Sperry8 said:
Whenever I update a GD Premium listing price I get the price updated in less than a minute. Why are you seeing it take so long?

Hi are you saying that the price in the Premium Listings Control Panel updates at once? It certainly does for me - as long as I refresh the page - but that is not the problem.

Try searching for your domain as if you were a customer just putting a phrase into the domain searchbox at Godaddy. If a domain is available as a premium listing, the message you get is
Good news, this domain is available Continue to Cart
and below that the price you listed it at, with a little asterisk to explain discretely that GD do not own the domain but can get it for you, at once.

Those shopping cart prices take 24 hours to update, which is why there is a serious risk.

It's a known issue and GD confirmed this for me and I saved the transcript of the text chat where they say 24 hours is needed for the price change. Is that in the TOS? Does their system still sell at the old price or refuse the transaction? I'd like to know. You can test it yourself.

This is still a live issue. Yesterday in response to a nice reported sale I more than doubled the price of some keyword domains on GD Premium Listings. But the old prices still show to shoppers today, even though in the Premium Domains Control Panel I see my new prices. I just do not know if someone can still buy at yesterday's lower prices.

Name Trader · Mar 14, 2015

@carob - If you take it into your cart. What price does it show? If it's the old price, then that is what it is being sold for.

main · Mar 14, 2015

So basically prices have gone up at GD Auctions, at EVERY level, including over $25,000. Sucks for me as I don't use any of the Premium Listings.

Name Trader · Mar 15, 2015

@main - Your complaints are falling on deaf ears. But it does feel better after you have complained

The decision has already been made. Nobody (from GoDaddy) is actually listening to this overwhelming negative reaction, despite what @Joe Styler, says.

Nerevar · Mar 15, 2015

Well, yesterday I tried to register filebarn com at GoDaddy. While the cost was $8 when I put it into cart, the final amount to pay was repeatedly shown as ~$2,000. After several attempts, I had to register the name at another registrar...

HeyNow · Mar 15, 2015

Don't bother with any of the available auction platforms or auctioneers. Hang a "For Sale" page yourself. You'll have a higher-quality sale from a truly interested buyer if you stay away from those individuals and entities, which, behind the curtains, are playing us like puppets on strings. I'm telling you, we're being played for fools.

History is replete with documented instances of auction fraud, shill bidding, and mystery bidders employed by the auctioneer or auction platform who do nothing but drive up prices.

The scams continue, and frankly, we have no way of knowing for sure who's on the "up-and-up" and who's picking our pockets dishonestly. Stop all of it until the industry cleans itself up.

Remember, you're not going to get any of the truly valuable names for what those names are actually worth by dicking around with middle men. Also remember the middle-men are another obstacle between you and a truly interested end user.

carob · Mar 15, 2015

stub said:
@carob - If you take it into your cart. What price does it show? If it's the old price, then that is what it is being sold for.

Hi every time I put one of these in the cart (before 24 hours have elapsed after I change the listed price) it shows the old price.

What I don't know is if the transaction would go through, or if it would refuse to take the money and say the domain was no longer available, or no longer available at that price. Or if it would take payment, then say the domain was no longer available, and then refund the payment.

Just noticed, it adds 20% VAT to the price of a premium domain in the cart - but not until it is in the cart. Clicking the convenient link there (below the currency and above the ICANN fee) to change the country there to USA immediately removes the 20% VAT though.

Ted.T · Mar 16, 2015

Everyone is complaining here, but in the end all of us, or a majority, will continue to use Godaddy because we don't have too many other choices... It's difficult to adopt new thinks, but that's what the human race does for millions of years.

Shimmy · Mar 16, 2015

We may, but I know I already raised my godaddy prices up 20% , compared to the prices on my own site.

kawalsukhi · Mar 17, 2015

Shelby90 said:
Everyone is complaining here, but in the end all of us, or a majority, will continue to use Godaddy because we don't have too many other choices... It's difficult to adopt new thinks, but that's what the human race does for millions of years.

Aptly said....still not a better deal than Godaddy!

tonecas · Mar 18, 2015

i can only say: W T F??

the announcement email is just incompressible. the changes will take place on April, but they are moving in the next weeks.

completely insane.

and no one seems at the helm of Afternic. no answer to questions, emails. nothing. they reply to what they want, when they want. GoDaddy killed Afternic.

Name Trader · Mar 18, 2015

Afternic support definitely got worse these last few weeks.

N-A · Mar 18, 2015

Shimmy said:
We may, but I know I already raised my godaddy prices up 20% , compared to the prices on my own site.

You simply cannot raise your prices with flat rate percent of 20% without sticking it to the customer.

Say you had BIN's of $100, commission would have been $10, with you receiving $90. Now, you raise your price 20%. Your new BIN is $120, but after 20% commission, you now receive $96. In essence, raising your prices 20% is effectively making your customers pay more and getting you more money. For this example of $100, you would have to raise 12.5% to get your previous $90, even though they raised 20% (or a new BIN of $112.50).

Below are the numbers to show you the higher you go, the more you will end up charging your customers if you also go up 20%. (I know, it's tiered, just an example for the "20%" comment)

Code:

Price  Your Cut (10%) Raise 20% (New Price) Cash After Commission Difference
100    90             120                   96                    6
250    225            300                   240                   15
350    315            420                   336                   21
500    450            600                   480                   30
700    630            840                   672                   42
1000   900            1200                  960                   60
1250   1125           1500                  1200                  75
1800   1620           2160                  1728                  108
2000   1800           2400                  1920                  120
5000   4500           6000                  4800                  300
10000  9000           12000                 9600                  600
15000  13500          18000                 14400                 900
50000  45000          60000                 48000                 3000
75000  67500          90000                 72000                 4500
100000 90000          120000                96000                 6000

Name Trader · Mar 18, 2015

I for one, understood that David. Any comment from me about raising prices by 20% was just approximate. For me it would be slightly different calc, because before I ate the commission, but now I'm not going to eat any of the commission. So if my price is $1000, and I want to receive $1k, the calc is, $1000 = 80% therefore the price will be $1000 / 0.8 = $1250.

And before, I wasn't using BIN pricing. But should I decide to GoDaddy Premium Listings (which seems the likely choice), I have to review more closely the price I set for my thousands of domains. No more flat minimum offer price. It's going to make things much more difficult for me to manage. Thousands of domains with fixed prices. Like how often will I need to review my pricing, up or down?

N-A · Mar 18, 2015

stub said:
I for one, understood that David. Any comment from me about raising prices by 20% was just approximate. For me it would be slightly different calc, because before I ate the commission, but now I'm not going to eat any of the commission. So if my price is $1000, and I want to receive $1k, the calc is, $1000 = 80% therefore the price will be $1000 / 0.8 = $1250.

Ok, I didn't read the whole thread to know. I just referenced someone stating that they raised their prices 20% to reflect commissions being raised to 20%. I'm sure you did your math right, as well as others, but it just came out wrong. Probably meant to say that they will raise prices to reflect the change. I was just pointing out the math associated with a flat 20% raise if commissions were changed to 20%.

Anywhoo, someone has to pay for all the GoDaddy Promo Codes.

Name Trader · Mar 18, 2015

@David Walker -I also added the second paragraph, whilst you were replying. Apart from the difficulties of managing a large portfolio at fixed pricing, this migration is going to swamp the GoDaddy Premium Listings. I don't think GoDaddy has thought that through, at all. The only domains potentially left on GoDaddy (regular) Auctions, will be Make Offer sales.

information New Afternic & GoDaddy Commission and Pricing Structure

"Veritas Liberabit Vos"Top Member

Established Member

Established Member

Top Member

VIP Member

Top Member

formerly @stubTop Member

I'm out of domaining. ~RusselAccount Closed (Requested)

Top Member

Established Member

Top Member

formerly @stubTop Member

Top Member

formerly @stubTop Member

Top Member

MemberRestricted (85-100%)

Top Member

Top Member

Established Member

Top Member

Top Member

formerly @stubTop Member

Account Closed

formerly @stubTop Member

Account Closed

formerly @stubTop Member

Similar threads

We're social

Pinned

Appreciation

Agreement