BRANDROOT WANTS TO PAY YOUR RENEWAL FEES!

[Coral Cove]

Hi everybody, we have new system rolling out at Brandroot soon. I wanted to get your comments and feedback before it's officially launched. Please let me know if you have any questions about the system or anything you thing we could change or make better. This systems is totally tentative and will likely be revised as we get more feedback and suggestions. We hope you like the idea!

 

[Chris Hydrick]

Very interesting idea! I have a question regarding:

"Move more than 100 Domains from another MarketPlace"

"BrandBank is for sellers who exclusively sell at BrandRoot. This includes any seller who decides to move their domains to BrandRoot."

Are there any thoughts to supplement listing fee's?

One one hand, free renewals are great! This really helps large volume sellers, and puts pressure on the marketplace to sell our domains. On the other hand, we are forgoing the listing fee's paid with other marketplaces and in turn paying new listing fee's with your marketplace. $10 listing fee's in bulk really adds up.

 

[Coral Cove]

Very interesting idea! I have a question regarding:

"Move more than 100 Domains from another MarketPlace"

"BrandBank is for sellers who exclusively sell at BrandRoot. This includes any seller who decides to move their domains to BrandRoot."

Are there any thoughts to supplement listing fee's?

One one hand, free renewals are great! This really helps large volume sellers, and puts pressure on the marketplace to sell our domains. On the other hand, we are forgoing the listing fee's paid with other marketplaces and in turn paying new listing fee's with your marketplace. $10 listing fee's in bulk really adds up.

Thank you for your comment. We always try work with those who want to move over from another marketplace, mostly larger portfolios. One deal we recently made was we would collect the listing fee when the seller sells their first name. Alternatively, we can lower the listing fee or figure something else out. Eliminating the fee altogether cab be extremely expensive for us and almost always makes the deal not worth it for us. We get move requests almost weekly, many of them willing to pay the listing fee if we are willing to accept them as a seller.

Our seller applications are backed up to June, 2015 with over 250 applicants waiting to be accepted. The biggest incentive for those moving over is not having to wait to get accepted. They get their domains fast-tracked and published very quickly.

 

[Theydon]

Nice initiative. The a/c handling fee means in reality it isn't at 'zero interest'.

 

[Coral Cove]

Nice initiative. The a/c handling fee means in reality it isn't at 'zero interest'.

Hi Theydon. It is zero interest as in we do not charge interest over time when you collect from us. The account fee is still unconfirmed but it's something we may have to do to justify the time and costs involved. It's a very small price for what is being offered.

 

[KDN]

Thanks for this!

Putting eggs in one basket is an investment no-no so initiatives like this will always be beneficial for the sellers.

I have a question. Who will decide on the prices of the domains that we move?

 

[slimjim270]

A bold statement!

To guarantee renewal fees (by fronting cash flow) mitigates your long term risks when listing with a site... and basically says "I will guarantee you (the domain owner) that I will sell at least 1% of your portfolio per year and will pay your out-of-pocket renewal fees if I don't". An interesting concept!

I mention 1% annual sales as if you have 100 names listed on a "brandables" platform, you only need (1) sale annually with at least a $900 take... and this covers your annual portfolio renewal fees in the "brandables" market.

This program would eliminate the risk one has on BrandBucket of listing 100 names, selling zero(0) the 1st year, and having to cough up another $900 at renewals time (an annual cash sink burden) or consider walking away from your original capital investment.

If you are a domain investor who buys, holds, and looks for asset appreciation over time... this program sounds like a terrific way to ensure you won't have a negative cash flow during your holding period while your assets (domains) appreciate.

I have names on both sites (BB & BR)... it has me wondering... Will BB respond? Or will they sit quietly and lose experienced members?

-Jim

ps: A smart strategic move by Brandroot.

 

[Michael M]

Interesting...

Trying to think it through in my head (and I just woke up so I hope this isn't way off)

Using Example 2 (75 domains - not counting domain purchase):

$750 to list all of the domains.

$20x12(months)=$240 account handling fee (if it were the high side)

Make one sale for $1,000... You make $100 dollars, owe $240 in account fees, so you are at -$140

BR then pays your renewals on 74 domains. $666

$666-140=$526

So BR would send you $526 at the end of the year for your renewals. Therefore, technically, on your $1000 sale the seller makes $526.

So after year one if one sale is made, then you had spent $750 listing fees minus the $526 you get paid at the end of year one for renewals - which means year one you are at: -$224.00

So it is $224.00 cost of business the first year to get listed. The second year if you made one sale at $1000 - then roughly the same math would apply and you would profit about $500 your second year.

Is this correct?

-Mike

 

[Keith DeBoer]

Hi Michael,

I admire the creativity and intended benefit for sellers. However, for me, as a potential seller, this proposal seems too complicated and if I was on BrandRoot I would prefer to manage my own money/payments. Others may feel differently of course.

On a side note, if I may............The number one motivator for a seller is sales and number two is good customer service.

I have my domains at Go Daddy and I have many complaints about their platform but they are convenient and responsive both on NP and via phone and instant chat. So I stay with them in spite of all their problems.

Same is true for Brand Bucket. I happen to be very satisfied with BrandBucket but others have expressed misgivings on NPs threads and yet they stay. I think one of the reasons is because BrandBucket's responsiveness and customer service, and professionalism are unparalleled in the brandable marketplace.

I would respectfully suggest that the number one way for Brandroot to acquire new sellers is to start to service them more thoroughly. Catch up on your backlog of seller applications, and beat the competition on the time it takes to review and publish your seller's names (a major complaint from sellers about the other brandable marketplaces). Then give them a good sell through rate as good or better than the competition.

If you can do those things the sellers will be at your feet You will not have to resort to complicated proposals like this one which, in my opinion, will only create misunderstandings and frustration for both you and those sellers who misunderstand or don't read the fine print of this deal.

I'm giving this feedback by the way, not as a criticism, but in support of you. I think competition is good for the brandable marketplace and I wish you all success in your endeavors.

Best,

Keith
https://www.brandbucket.com/profile/brandtrapper

 

[cmdomains]

Hi @Brandroot , just quickly dropping by. I was looking at one other marketplace that does the same thing and I thought it's a good way to attract sellers (and how much in portfolio each I won't know). Currently most of my names are listed at SEDO which I find can be a disadvantage as it's a very very saturated marketplace but at the same time it can't be helped to get listed as they are an established site where real endusers go to, where "high-end" sales happen. On a positive note, atleast by "incentivizing" sellers on renewal fees, it makes it a two-way deal, creates some relief for sellers while waiting, opens up opportunities for Brandroot. I don't remember creating an account with you yet but it's been in my list. I think I'll check your site out soon.

 

[DNGear]

I have tried N number of times to create an account.
I never get any response from BR.
I thought they would only accept like MindSpring, KickStart....
I quit trying.

 

[cocaseco]

I would respectfully suggest that the number one way for Brandroot to acquire new sellers is to start to service them more thoroughly. Catch up on your backlog of seller applications, and beat the competition on the time it takes to review and publish your seller's names (a major complaint from sellers about the other brandable marketplaces). Then give them a good sell through rate as good or better than the competition.

If you can do those things the sellers will be at your feet You will not have to resort to complicated proposals like this one which, in my opinion, will only create misunderstandings and frustration for both you and those sellers who misunderstand or don't read the fine print of this deal.

On point and 100% accurate. The best investment you could make would be to improve customer service or hire support staff.

 

[Coral Cove]

Hi @Brandroot , just quickly dropping by. I was looking at one other marketplace that does the same thing and I thought it's a good way to attract sellers (and how much in portfolio each I won't know). Currently most of my names are listed at SEDO which I find can be a disadvantage as it's a very very saturated marketplace but at the same time it can't be helped to get listed as they are an established site where real endusers go to, where "high-end" sales happen. On a positive note, atleast by "incentivizing" sellers on renewal fees, it makes it a two-way deal, creates some relief for sellers while waiting, opens up opportunities for Brandroot. I don't remember creating an account with you yet but it's been in my list. I think I'll check your site out soon.

Hi Cmdomains. What other marketplace does this? Brandroot also attracts only high-end, end users. We expect to exceed 1 million this year in sales, which is very good for a marketplace of our size. The more we hold back from growing like BB has the less saturated our market will be, resulting in more sales for our sellers.

 

[Coral Cove]

Hi Michael,

I admire the creativity and intended benefit for sellers. However, for me, as a potential seller, this proposal seems too complicated and if I was on BrandRoot I would prefer to manage my own money/payments. Others may feel differently of course.

On a side note, if I may............The number one motivator for a seller is sales and number two is good customer service.

I have my domains at Go Daddy and I have many complaints about their platform but they are convenient and responsive both on NP and via phone and instant chat. So I stay with them in spite of all their problems.

Same is true for Brand Bucket. I happen to be very satisfied with BrandBucket but others have expressed misgivings on NPs threads and yet they stay. I think one of the reasons is because BrandBucket's responsiveness and customer service, and professionalism are unparalleled in the brandable marketplace.

I would respectfully suggest that the number one way for Brandroot to acquire new sellers is to start to service them more thoroughly. Catch up on your backlog of seller applications, and beat the competition on the time it takes to review and publish your seller's names (a major complaint from sellers about the other brandable marketplaces). Then give them a good sell through rate as good or better than the competition.

If you can do those things the sellers will be at your feet You will not have to resort to complicated proposals like this one which, in my opinion, will only create misunderstandings and frustration for both you and those sellers who misunderstand or don't read the fine print of this deal.

I'm giving this feedback by the way, not as a criticism, but in support of you. I think competition is good for the brandable marketplace and I wish you all success in your endeavors.

Best,

Keith
https://www.brandbucket.com/profile/brandtrapper

Hi Keith. Thank you and I agree 100%. To your first point, this idea is not very complicated though it may seem so. It appears complicated with the examples and rules but its as simple as this:

"Brandroot will pay your renewal fees and you pay us back with sales."

Everything else is added benefits for both parties, and rules, like you'll find in the small print of any feature of a website.

I understand your point, but we aren't exactly after more sellers. We more so want to help our current ones and attract very large portfolio holders. Our current sellers have been quite successful with us. If we were after more sellers we wouldn't have over 250 applicants waiting. These can be cleared out in a day but we just aren't ready for that. What we don't want is a saturated market like BB's. We get people at least once a week wanting to move over from BB but it usually doesn't work out. Their portfolio is typically too small to be helpful for them or us. This feature is mostly for large portfolio holders who are worried about trying out our platform because they may not be able to meet their renewal fee costs. And it's just an added available benefit for anyone else.

It's hugely beneficial for anyone who is worried about maintaining their portfolio or who wonders how they will get from month to month with their domains. Many of us successful domainers may not have that issue but a lot do from what we have heard.

 

[Coral Cove]

On point and 100% accurate. The best investment you could make would be to improve customer service or hire support staff.

I'm not sure where the lack of support at Brandroot is coming from. We have never had a complaint about our support. The wait times for domain submissions fluctuate, yes. But I can't say that we receive complaints about our support. And certainly never from our buyers.

 

[ApeXX]

I think the sticking point for me would be in the "account handling fee". There's a pretty big difference between a $5 fee and a $20 fee per month, although maybe I'm just cheap.

I really like the concept of the idea though. Right now sellers assume all the risk in listing their domains. Showing me that you're confident enough in your platform to share some of that risk really motivates me to look into BR and seriously consider what you have to offer.

 

[Coral Cove]

I think the sticking point for me would be in the "account handling fee". There's a pretty big difference between a $5 fee and a $20 fee per month, although maybe I'm just cheap.

I really like the concept of the idea though. Right now sellers assume all the risk in listing their domains. Showing me that you're confident enough in your platform to share some of that risk really motivates me to look into BR and seriously consider what you have to offer.

For the sake of simplicity we are likely dropping the account fee altogether.

 

[cocaseco]

I'm not sure where the lack of support at Brandroot is coming from. We have never had a complaint about our support. The wait times for domain submissions fluctuate, yes. But I can't say that we receive complaints about our support. And certainly never from our buyers.

Michael, Just as @Keith DeBoer wrote, my endorsement of HIS comments are meant in a positive and honest feedback. Perhaps "lack of support" is an overstatement. In my own words, I would say that support could be better. That is a true statement for ALL businesses as support is never good enough in the eyes of all customers. As an example, the 3 month backlog of applications would be 100% tolerable, if those people received an email, even an autoreply, explaining that their interest in BB was appreciated, but that you currently have a three month backlog, and their request will be handled in chronological order. That way people would understand the situation. Instead, the lack of any email leaves the potential customer and partner wondering if their application was even accepted by your system.

You know I am a supporter and an advocate of your platform. I have publicly defended the application process, even though I knew it could be improved. I have publicly lauded the features you offer. I am a fan and supporter of your growth. Your platform has features I really like, and prefer over your competitors. Perhaps you just need more help, and I'd personally be happy to do that at no cost because I believe in your platform. You have been very helpful to me, and I hope you take my comments in the constructive way they are intended. If Brand Root excels and grows, so does my portfolio.

 

[GoKaizen]

This is an interesting idea Michael. How do you see this being profitable for @Brandroot though?

I have my domains at Go Daddy and I have many complaints about their platform but they are convenient and responsive both on NP and via phone and instant chat. So I stay with them in spite of all their problems.

If you need to contact GD support all the time Keith because of problems you are wasting time. Bulk transfer to another registrar.

 

[Robozy]

I think this is a fantastic initiative!

This is an interesting idea Michael. How do you see this being profitable for @Brandroot though?

By drastically lowering the risk and financial concerns for existing sellers, this scheme makes them more likely to stay with the platform and invest further, and it also makes the marketplace more attractive for larger players to adopt - ultimately this means more sales for Brandroot.

I would like to see this scheme simplified, whereby the entire sellers share goes towards settling the Brandbank loan if necessary (I hate owing money) and the account handling fee done away with. This alternative will make for a more financially robust platform, require less admin, reduce potential for accounting errors and is easier to explain to sellers. For me, by far the most important advantages of Brandbank are the peace of mind that it would offer during slow sales months and ensuring that I won't make a loss due to renewal fees. I am not concerned about making a profit from every sale - only the net profit at the end of the year. If you want to make up those handling fees elsewhere, I think it would be better to do it by raising listing fees slightly.

I would also modify the following rule with a clause: "Sellers taking part in Brandbank cannot remove their domains from Brandroot while their Brandbank is active, unless replacing them with domains of equivalent or higher value."
The main reason I say this is that I would like to be in a position to replace the worst names in my portfolio with better ones on an ongoing basis, which will increase my likelihood of sales at a decreased cost (by reducing renewal fees in the long term), and increase the quality of the marketplace, which will attract more buyers. Names with a low probability of sale will end up costing a lot more than their initial listing in renewal fees, and it is better to get them out of the system.

Another thing I like about this scheme is emphasizes the importance of accepting high quality names, since Brandroot is taking on unnecessary financial risk by accepting a dud. Increased quality is good for everyone.

 

[Coral Cove]

@Robozy thank you for the great feedback. Those are excellent ideas we will likely implement. The more we hear what our sellers want the better we can make our marketplace.

 

[JimJammy]

Full Disclosure:
I have no domains with Brandroot. I have applied twice over the last 10 months.
I have 500+ names with Brandbucket.

I really applaud what you are doing, this feels like a team working together, rather than a service for sellers.

I also love the idea of you paying renewal fees but it does seem to be over complicated.

My biggest bug-bear with these marketplaces are:
1) The listing fees.
Perhaps you could implement a tiered system whereby when you reach a certain amount of domains listed the fees are reduced until ultimately, at a set amount no more listing fees will be applied. Reward the long term loyal members.
2) The time taken to get a name on site.
Most of my domains are caught. If someone else has been watching the name, chances are they are going to contact me within a week of me catching it and I'm going to sell it to them. Not only are these names lost by the marketplaces but I have probably already made a submission which causes them work when it has to be removed. If it had been approved and listed, I would have had to honor the 30% agreement.

Though I'm not with BR, I hope these help you identify some of the frustrations us sellers have.

Good luck with your business plan, though I don't think you need it

 

[Coral Cove]

Full Disclosure:
I have no domains with Brandroot. I have applied twice over the last 10 months.
I have 500+ names with Brandbucket.

I really applaud what you are doing, this feels like a team working together, rather than a service for sellers.

I also love the idea of you paying renewal fees but it does seem to be over complicated.

My biggest bug-bear with these marketplaces are:
1) The listing fees.
Perhaps you could implement a tiered system whereby when you reach a certain amount of domains listed the fees are reduced until ultimately, at a set amount no more listing fees will be applied. Reward the long term loyal members.
2) The time taken to get a name on site.
Most of my domains are caught. If someone else has been watching the name, chances are they are going to contact me within a week of me catching it and I'm going to sell it to them. Not only are these names lost by the marketplaces but I have probably already made a submission which causes them work when it has to be removed. If it had been approved and listed, I would have had to honor the 30% agreement.

Though I'm not with BR, I hope these help you identify some of the frustrations us sellers have.

Good luck with your business plan, though I don't think you need it

Hi Jim. Thank you for your feedback! To comment on your points,

1. Brandroot does have something similar in place where the more domains you have with us the lower the listing fee. We will need to consider eliminating the fee over time. We do have costs associated with each domain that gets published and it can get very expensive for us if we remove the fee altogether.
2. Currently Brandroot has an extremely low wait time to get published. We can push through over 100 domains in just few days. Also, for individuals like yourself with a large portfolio we eliminate the wait time altogether. Your account is setup so you do not have to wait for your domains to get reviewed. They are all automatically accepted. We guide our big sellers on what we want and for the most part this has given us no issues whatsoever. The advanced domainers like yourself are disciplined and know what they should and should not list.

I would highly recommend you contact @Robozy on his experience at Brandroot. He has over 2,000 domains with us and we are always working to exceed his expectations. Feel free to shoot me a message if you want to know what we can offer you .

I might add that with BrandBucket's recent disclosure on sales, it's pretty clear you would be more successful at Brandroot than BB. Your 500 domains are lost in the shuffle. We attract large volume sellers and try to reduce the number of lower volume ones so that the few sellers we do have are all successful. It has been working out wonderfully for our sellers.

 

[Chris Hydrick]

I'm not sure where the lack of support at Brandroot is coming from. We have never had a complaint about our support.

Often times as sellers, we focus on what directly effects us. I'm equally if not more interested in the support and services rendered to your buyers.

Do you happen to know your average response time for domain inquiries? More specifically, if I Pre-Approve a 10%-20% discount, do you have a system in place to promptly respond to the offer?

BrandBucket apparently doesn't offer weekend support to buyers, nor do they have a public toll free number for international buyers. Can you explain how often your 1-866-WE-BRAND phone line is monitored? Is it an answering service, or call center?

 

[Coral Cove]

Often times as sellers, we focus on what directly effects us. I'm equally if not more interested in the support and services rendered to your buyers.

Do you happen to know your average response time for domain inquiries? More specifically, if I Pre-Approve a 10%-20% discount, do you have a system in place to promptly respond to the offer?

BrandBucket apparently doesn't offer weekend support to buyers, nor do they have a public toll free number for international buyers. Can you explain how often your 1-866-WE-BRAND phone line is monitored? Is it an answering service, or call center?

We absolutely have support on weekends. It's 11pm right now on Sunday and we are working on closing a couple of sales. Sales inquiries never take a break at Brandroot. We have been in startup mode since the day we started 5 years ago. The phone number is not utilized so much but we have closed countless sales over the phone at every hour of the day.