strategy Crazy commission rates! Enough is enough!

[levinsondomains]

Hi friends,
After one year of domaining I can't stop thinking about the crazy commissions that all of us pay to the major companies.
We work so hard, inbound, outbound, auctions, financial risks and everything else and after all we pay something like 15-20% to these companies.
I realized that there is no reason to this unusual rate. And why it's happened? Cause we are like prisoners in their platform,the big ones in this industry works in these companies and everyone go after them "on blind". After each sale we get maybe 65% of the purchased price, this is crazy!(commission+taxes+ other costs). And we are stupid, so stupid. If you stop and think about it for a minute you will understand how absolutely crazy are these rates.
Enough is enough, stop paying for this rates. If we work together we can reduce these rates, or even opening a social company for all of us. 20%!20%!WTF?

 

[BrandClub.com]

you really belive, that you can make better landing page yourself? better then the big market places?

Most landing pages used/offered by BIG marketplaces are just CRAP !

 

[Mister Funsky]

Haven't read the whole thread but those commissions are COB (cost of business) and a sales person or sales force has to have some type of incentive.

On a side/similar note, we domainers here should develop our own site...maybe just a 5 to 7 percent commission to cover overhead and for some marketing.

 

[jaydub]

Thanks for taking the time for this Jay

I've got a folder of like 14 years worth of scripts so I'm generally always A/B testing a few of them

Simple & Clean has always worked the best for me so I'd probably say...

https://themeforest.net/item/domain-broker-2-landing-page-to-sell-domains/12578919

Modifications I've made to this one...

My own background image optimized so a smaller file to load
May Be For Sale! instead of Is For Sale!
small sales/confidence pitch above offer form
reworded the text on each offer form field
added a phone number field (this will probably be added in the next version as I told dude he should add it for those that can't hack one in like I did)
changed text on submit button and made it green as feel green is good
sales color, but maybe I think too much
few affiliate links in footer
htaccess to default all www to non www
htaccess all 404's to index so no lost traffic
recpatcha 2
reformated offer form it sends to make it in the order I like to save time

think that's all I've modified on this one but may find another tweak. I generally email the authors of all of the scripts I buy/modify and try to get them to add features I've added so those that don't know how to modify them get the same features I've added eventually. This also saves me time if the default version contains as much as possible so when they update them I don't have to go back and make tons of my custom modifications again. Quite a few popular scripts have additions to them from my suggestions as some coders don't really know the domain business as well and they are usually receptive to adding stuff I suggest once I show them my version.

Basically if ya can code or hack some code you generally go stand alone php script and hack it to add features/tweaks ya need as generally nothing is 100% the way ya want it especially if your a perfectionist/anal like me. For those without skills they generally default to wordpress as easier for anyone to run but kinda feel wordpress is bloated and a bad bot magnet looking for holes. Been running my own servers since 2003 and seems all of the stand alone php scripts barely put any load and only see a small fraction of the bad bot attempts wordpress does as definitely a target since popular so updates/security tweaks need to happen to lock it down.

One wordpress plugin in my folder of scripts....

https://codecanyon.net/item/this-domain-is-for-sale-wordpress-plugin/8469865

Search...

https://codecanyon.net
https://themeforest.net
https://www.codester.com

etc...

and find what ya like. I own a ton of stuff so few others I like/own as well but what I like might not be what you like. Only thing I know I definitely like is simple and clean as it's worked for me and end users never ask me for traffic stats etc... so I try not to use anything that overloads them with data as the goal is to get the lead not confuse the hell outta them and I've got 14 years of end users that have never asked for those statistics so I don't want them on the page.



I really enjoy 99% of all the offers I receive being from end users who don't hesitate to drop...

real name, real phone number, real email address (many from existing companies), ip address as I don't really see any domainer offers or whois offers so I'd kinda like to keep it that way as my lead to sales ratio is high due to almost all the offers being from end users.

 

[toughdomains]

afternic approached us and asked me to point a list of names to their nameservers. they mentioned they could sell them faster after we switched over to them....after about 4 months zero sales we just gave them our traffic. there are a few services out there that offer zero commission on their sales pages. I do think 20 and 30% is a bit high. the good thing is you have options...no one has to list with the big marketplaces.

 

[chickenfillet]

I was thinking of starting up a 0% commission website for quite some time.

It will take me a few thousand dollars of investment (with no return), but it should be worth it, since I could easily sell my own small portfolio for the prices I want, thus getting my return on investment that way instead.

However, I'm not sure anyone would be interested in this...

Would anyone be interested in this?

 

[toughdomains]

I was thinking of starting up a 0% commission website for quite some time.

It will take me a few thousand dollars of investment (with no return), but it should be worth it, since I could easily sell my own small portfolio for the prices I want, thus getting my return on investment that way instead.

However, I'm not sure anyone would be interested in this...

Would anyone be interested in this?

We offer 0% commission on domain sales if you only use make offer on free plans....there are a few other services out there that also have 0%...I think unireg and bodis also offers 0% com with make an offer pages...we also have a simple and more complex for sale lander

 

[chickenfillet]

Wow, that's quite interesting to see you and others doing 0%, I don't know why people aren't jumping ship.

However, I was more implying a proper marketplace like Sedo & Flippa, where users can search through domains, auctions, brands, etc, but with 0% listing and commissions with no 'membership' plan.

Anyways, I guess it would probably fail due to a lack of interest.

People would rather pay 15% than 0% it seems...

 

[maksimfa]

People would rather pay 15% than 0% it seems...

IF.... IF... a broker brings you a customer, sure, the 15% to 30% is not a big deal and is worth it....

BUT.... if you point your domains to their pages and the seller ends up coming through a visit to your site... what's the point?

SEDO and Afternic ARE NOT calling or emailing end users for your $2,000 domain.

 

[chickenfillet]

You're absolutely right.

Buyers usually just email the WHOIS email if they want your domain, there is not much point listing it on a marketplace, they will just take the commission.

 

[Asfas1000]

People would rather pay 15% than 0% it seems...

15% includes escrow fees and time spent dealing with the buyers.

 

[chickenfillet]

15% includes escrow fees and time spent dealing with the buyers.

A bit high when I can use Escrow.com for a fraction of the %, and the time spent dealing with buyers costs me 10 minutes of typing 80wpm.

Each to their own I guess

 

[Asfas1000]

A bit high when I can use Escrow.com for a fraction of the %, and the time spent dealing with buyers costs me 10 minutes of typing 80wpm.

Each to their own I guess

It is high... my point is at 0% you can only offer a landing page and you are operating at a loss. I don't think it's viable...

 

[maksimfa]

It is high... my point is at 0% you can only offer a landing page and you are operating at a loss. I don't think it's viable...

15% of a $2,000 domain is $300.

Say you hire a virtual assistant for $5/hour to compile a list of potential end users.... Say.... 20 hours? $100.

That leaves $200 to hire a PROFESSIONAL cold caller to solicit your domains.

What do you think is going to be more effective.... That....

Or.... listing it on Sedo and praying? In the end, it will cost more to wait and for your privilege to list it on the site.

Again, if the marketplace finds you a buyer... sure... I have no problems... but to point your domain and your natural traffic to their landing page.... and then you pay 20% or more for simply having them process the transaction for a buyer that YOU found.... is just stupid.

 

[Fancy.domains]

i have the buyers pay the commision

example:

if I want to net $1,000 for a particular name

i post to sell for $1,200

I have thought about this myself. I.e. offer the cheapest price on my own landing pages and increase the BIN on market places with 15-20%.

 

[Asfas1000]

15% of a $2,000 domain is $300.

Say you hire a virtual assistant for $5/hour to compile a list of potential end users.... Say.... 20 hours? $100.

That leaves $200 to hire a PROFESSIONAL cold caller to solicit your domains.

What do you think is going to be more effective.... That....

Or.... listing it on Sedo and praying? In the end, it will cost more to wait and for your privilege to list it on the site.

Again, if the marketplace finds you a buyer... sure... I have no problems... but to point your domain and your natural traffic to their landing page.... and then you pay 20% or more for simply having them process the transaction for a buyer that YOU found.... is just stupid.

I can't see where we disagree...pls explain. I am talking about listing your domains at the various marketplaces and pay 15%-20% if the lead originated from them, a commission which also includes the Escrow fee. No point in pointing to their landing pages.

 

[maksimfa]

I can't see where we disagree...pls explain. I am talking about listing your domains at the various marketplaces and pay 15%-20% if the lead originated from them, a commission which also includes the Escrow fee. No point in pointing to their landing pages.

No no, quite right. =)

But then i am thinking, why not price your own 15% to 20% higher?

Buyers's care about the price, they don't care how the middleman gets paid.

Although some sites already do this... they remarket existing auctions by marking them up even more.

 

[Asfas1000]

I have thought about this myself. I.e. offer the cheapest price on my own landing pages and increase the BIN on market places with 15-20%.

That'a bit tricky, if a buyer BINs your aftermarket listing and then finds your landing page shows a lower price. I don't know...feels scammy / unethical.

Besides, they may start trying to find an even lower price for the same domain of yours

 

[Fancy.domains]

That'a bit tricky, if a buyer BINs your aftermarket listing and then finds your landing page shows a lower price. I don't know...feels scammy / unethical.

Besides, they may start trying to find an even lower price for the same domain of yours

Hotel rooms have different prices on Agoda.com and Booking.com, even both companies have the same owner, The Priceline Group.

But thanks for your opinion and views. There are many parameters to consider.

 

[maksimfa]

Hotel rooms have different prices on Agoda.com and Booking.com, even both companies have the same owner, The Priceline Group.

But thanks for your opinion and views. There are many parameters to consider.

But you always book direct with hotel to get your points. =) And they will usually price match the lower price. =)

 

[Fancy.domains]

But you always book direct with hotel to get your points. =) And they will usually price match the lower price. =)

Hehe, It varies a lot from hotel to hotel. I have been in the hotel booking industry since 1998.

 

[maksimfa]

Hehe, It varies a lot from hotel to hotel. I have been in the hotel booking industry since 1998.

The best on hotels was to actually call hotel directly and negotiate the rate. =P Still got my Marriott points.

 

[Fancy.domains]

The best on hotels was to actually call hotel directly and negotiate the rate. =P Still got my Marriott points.

More and more hotel chains are adopting this (best price guarantee policies), but not all of them. Mid range (2 to 4 star) hotels are still often cheaper to book from the online booking giants.

Ok, my comparison made this really off topic now. Sorry guys!

 

[toughdomains]

the fact that I think this discussion is missing is that every broker (100% of the brokers I spoke to
) only wanted my best one word names. so out of 300+ names they typically choose less than 10 names like heated.com or awaits.com.
A Broker will only consider easy to sell great names and these are the names typically getting most offers.

I have worked with a handful of brokers and no one has sold any of my names over a 1 year period. the broker will also want to set the sales price so in a few cases I lowered or halved the prices just to see if we could get something sold....In the end we sold nothing. however a broker will have a list of buyers and it does generate some interest in your names.

brokers also make money buying names and negotiating for big companies. I sat with a VC manager who said he got a 3 letter noun .com name for a couple hundred thousand vs the million+ price tag they thought it would be due to broker negotiations. lets say 250k vs 1.2 million

However we did get better replies with the method stewie is mentioning. Creating a list of buyers and emailing or calling them (reaching out to all dronemakers for smartdrones.com) so lets be clear....a broker will probably not even bother with a 2k name or most of your names unless you have what they can sell easy. They love 3 letter .coms and one word .coms

Now lets talk marketplace. We are approved seller for namejet. the way that works is we send them a list for sale and depeneding on your relationship with them and sales history they approve your names and prices. namejet has replied back and said this name only reached xxx in auction so we wont list unless you lower your ask. At the end of the day they want to sell the name. Whats crazy about namejet is they will take after auction bids from big buyers. which doesnt make any sense to me. If im a buyer and I know I can ask NJ to offer a price to the owner I would never offer my best bid in auction.

In the end we rarely sold a name on namejet for more than 1x. meaning if we do sell a name its around the price we paid for it.

At the end of the day the same golden rule applies. spend good money on great names and you will get a good return. the best names I have that get the most offers I purchased trolling auctions and paid more than $500 for some names I paid more than 5k or even 10k but was able to sell that name for 15k later. And yes of course there are situations where you hand reg or spend 200 and can sell it for 20k but that is far and few btw. this is kinda like winning a scratch off lotto ticket.

If you want the sure thing Invest in the best names. there are one word names being sold every week you just need to focus on them and have the money for it. If you want to rely on the lotto ticket as for brandable names yes you can sell those non one word .coms for 2k to 3k but you need to have a nice store and logo where the end user can see the value of the name.
Just like most things you need the right tools to sell and offer these names. you cant send a buyer a spread sheet with all your names when they just ask for your drone names. this is where the tools come in. having a nice store and for sale page and a logo with some info about you and trust language really helps the sale. tools will capture the lead tell you about the users location and allow you to present your name and adjust price quickly. Things you cant do with a spreadsheet.
you have to promote your store with these names. no one has to promote a name like bus.com or hotels.com

 

[slimjim270]

>> What also is funny about these auctions like the car auctions that if the reserve is met it brings in more buyers for some reason, any psychiatrists care to chime in as to why this happrens -Fatter


@fatter - it is funny to see it happen... since the Reserve price is not transparently displayed on many of these auction platforms, some bidders don't waste their time bidding until after the Reserve has been met. Giving the impression of "new bidders" to the auction, when in reality, the Reserve shadow was an affront to their bidding interest. Reserve met... then the auction feels "real".

Anyways... not a psychiatrist... but certainly have seen enough auction antics to see the dynamic happen time and again...

-Jim

 

[slimjim270]

As for the topic of the thread... too many "marketplaces" are nothing more than paid landing pages.

Many join these marketplaces and pay the $10 listing fees, falsely assuming the marketplace will put specific effort into promoting their individual domain. When 100's of their names haven't sold (typically handregs) and renewals start coming due, reality hits and the individual then jumps to (yet another) new marketplace hoping for newfound riches and better sales rates. Chasing a dream set in.

"Those who can't sell are simply trying to buy a sale by hiring a broker".

My suggestion would be... instead of building yet another new marketplace, consider building your own SLP (Sales Landing Pages) that contain in depth content using long-tail keywords for the targeted potential buying audience you are looking for.

Let me say that again... build your own Buyer Intent content (channel) that you can repeatedly harness long-term.


Why?

Because once that specific domain does sell, you can leverage your prior content efforts by simply replacing the prior name (or clickable logo) with a different name you own.

Suggestion - focus on building a channel, not another 1/2 baked marketplace which has no traffic (other than direct type-in traffic).

-Jim