news Dan.com to increase comission from 9% to 15% effective Feb 1st 2023

[MadAboutDomains]

Just received this email from Dan.com about commission increases (snippet of email):

Thoughts?

 

[Ostrados]

I'm looking at this from the opposite way.

This will translate into a major increase in domains listed in the Afternic network (it already does even before via Dan integration).

Competition has grown already for someone that uses only Afternic (for the sole reason, other landers never worked well in my case, if at all).

I feel it will be the opposite.
Because high percentage of domainers (maybe more than 90%) already list at Afternic.
So we may see more leavers than newcomers.

 

[FolioTeam]

Ah ok, I see what you're saying now.

$100,000 sale
before would be $14,000 - 10% (10,000) plus $4,000
now it would be $15,000 - 15% of 10,000

More like $7500 plus $4000
The 10% was on the amount greater than $25000.

So for $100,000, commission will be

10% of ($100,000 - $25,000) plus a flat $4000

Making a total of $11,500

 

[JB Lions]

More like $7500 plus $4000
The 10% was on the amount greater than $25000.

So for $100,000, commission will be

10% of ($100,000 - $25,000) plus a flat $4000

Making a total of $11,500

Yep, see posts after that

 

[FolioTeam]

Check it again:

Before it would be $11,500 ($4,000 +10% of amount over $25k).

Now it would be a flat $15,000



** By the way, on the same $100K sale, you would be charged $890 at Escrow.com... $15,000 vs $890 (or $1,780 using concierge service)

Problem is that Escrow.com does not support my country

 

[Future Sensors]

Only downside is now you will pay 25% for names sold via Afternic distribution network.

Are you sure about the 25% fee? It should be 15% according to what @James Iles of GoDaddy said in this thread. When a domain gets sold through the Afternic Premium Network, the fee should be 15%. Even if you're using dan.com nameservers.

https://www.namepros.com/threads/da...tive-feb-1st-2023.1292012/page-6#post-8803807

I admit that the communication about the Afternic Premium Network in particular could have been better in today's announcement.

 

[johnn]

Who cares about the commission as long as I make a sale.
It's 100 times better than listing $1 auction here.

 

[Dane]

Anything out there that is similar to Efty but doesn't cost quite as much to use?

 

[Kingslayer]

The domaining industry is in disarray. I wonder which marketplaces will rise to the top as a result.

Your better off with a broker, even the top brokers charge less commission than marketplaces and offer a more dedicated/hands on service towards your asset.

 

[DomainBarracksRob]

Are you sure about the 25% fee? It should be 15% according to what @James Iles of GoDaddy said in this thread. When a domain gets sold through the Afternic Premium Network, the fee should be 15%. Even if you're using dan.com nameservers.

https://www.namepros.com/threads/da...tive-feb-1st-2023.1292012/page-6#post-8803807

I admit that the communication about the Afternic Premium Network in particular could have been better in today's announcement.

This next line is litteraly copy paste from the email I recived this am :

"

• 25% commission for domains sold that are not pointed to nameservers at Dan, Afternic, or Uniregistry. "

 

[Future Sensors]

This next line is litteraly copy paste from the email I recived this am :

"

• 25% commission for domains sold that are not pointed to nameservers at Dan, Afternic, or Uniregistry. "

Yes, we all got that email.

But read carefully the scenario I described to @James Iles - thanks.

 

[DomainBarracksRob]

My whole thing is I don't care about the change in price on afteric.....


It's the fact they done ruined the incentive of using Dan and Dans Landers.

and Trying to corral you into using their dns.....It just an over reach of GoDaddys greed.

They Took part of the commission off on afternic (IF you use their dns... and stuck it on Dan WHICH THEY OWN lol......

Rewarding my ass ......

 

[lennco]

Sedo charges 10% when parked at Sedo and with a Buy Now.
Make Offer is still 15%
And MLS is still 20%

That is how its been for over a decade.

Make it 10% Buy Now and Make offer parked and 15% MLS and I would move back to @Sedo

 

[aoxborrow]

@James Iles @Doron Vermaat has there been any official word about changes to commission for DAN API Integratiors, e.g. Efty and Domain.io?

 

[dncafe]

DAN doesn't even bring much eyes/exposure to domains, so why continue to use their platform?

 

[bmugford]

DAN doesn't even bring much eyes/exposure to domains, so why continue to use their platform?

People use their system to generate leads from traffic to the domain, get offers, negotiate, and close sales.

Brad

 

[DomainBarracksRob]

.

 

[Dot Superstore]

I think when Godaddy took over DAN we all knew this was going to happen eventually, but don't send everyone an email making it sound like they're doing us a favour. How stupid do they think we are.
I don't think DAN are justifying 15% now, and in all honestly their commission was not always 9%, if you wanted you funds withdrawn to Paypal, anything over $2K(which it always mostly was) was charged at commission of between 10-14% which they never really mentioned before.
I will be moving my domains out of DAN eventually, there has gotta be some other half decent marketplace with commissions of 10%. SEDO has not been lucky for me, too many non-payers and fakers.

 

[NameInbox]

@Dot Superstore
Daaz - like Dan in India, but don't tell GoDaddy

p.s. I sold there on xx all was fine, auctions were useless for me

 

[domaindevil]

Another option is to raise prices by 7% on all domains? That way you would still end up getting roughly the same as before Godaddy and Dan's dick move?

 

[bmugford]

Another option is to raise prices by 7% on all domains? That way you would still end up getting roughly the same as before Godaddy and Dan's dick move?

I often hear that as a common response to rising commissions, sure it works in theory...the problem is a domain is far more likely to sell the lower the price is, so if you need to add extra fees into the price it is less likely to sell.

Brad

 

[NickB]

The worrying thing is they probably won't be stopping anytime soon on the acquisition side of things....

Since 2012 they have bought or merged with at least 1 company - normally 2+ per year........

Which leads on to this year.....they most likely will be looking at 1+ acquisitions this year - will it be on the domaining side or other parts of the business?....time will tell

Things are not going to improve in the Godaddy / domainer relationship..... if anything it will get worse going forwards....

 

[domainer111]

https://www.justice.gov/atr/antitrust-laws-and-you

Antitrust Laws And You​

Many consumers have never heard of antitrust laws, but enforcement of these laws saves consumers millions and even billions of dollars a year. The Federal Government enforces three major Federal antitrust laws, and most states also have their own. Essentially, these laws prohibit business practices that unreasonably deprive consumers of the benefits of competition, resulting in higher prices for products and services.
The three major Federal antitrust laws are:

• The Sherman Antitrust Act
• 
  
• The Clayton Act
• 
  
• The Federal Trade Commission Act.

The following information on these laws comes from the Antitrust Enforcement and the Consumer guide.

This makes sense. But like so many laws ... do they get enforced at all?

 

[Future Sensors]

Another option is to raise prices by 7% on all domains? That way you would still end up getting roughly the same as before Godaddy and Dan's dick move?

That's how many retailers are currently reasoning. But at some point your prices may be too high and your sales will decrease. Where your optimal price point is, is different for everyone, but think about this when pricing your domains.

Incidentally, it is interesting that DAN has not used the word "inflation correction" anywhere as a reason for the commission increase, as currently all companies seem to get away with it, especially in Europe.

 

[NickB]

Incidentally, it is interesting that DAN has not used the word "inflation correction" anywhere as a reason for the commission increase, as currently all companies seem to get away with it, especially in Europe.

Are American companies using this excuse? If not, that's probably why as Godaddy is......

 

[domaindevil]

That's how many retailers are currently reasoning. But at some point your prices may be too high and your sales will decrease. Where your optimal price point is, is different for everyone, but think about this when pricing your domains.

Incidentally, it is interesting that DAN has not used the word "inflation correction" anywhere as a reason for the commission increase, as currently all companies seem to get away with it, especially in Europe.

Just thinking that domain names and valuations are not an exact science and it is hard to price domains as is. I doubt that a 7% increase in the lower price ranges (4 figures) would change that much?