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?

 

[markfromslo]

Maybe it's time to stop using Dan and only use Afternic? (which might be GoDaddy's plan for this commission change.)

There are many domainers (me included) who are listing domains at Brandable marketplaces like Squadhelp and BrandBucket and who have enabled the option to list at Afternic. They can't change landers to Dan/Afternic/Uni. That means a 25% commission + a commission to the marketplace (who by the way will very likely scrap the whole listing at Afternic thing, because due to the Feb 1st change, their commission will drop to 5% for all listed domains). And that's just one case of the impact. Things aren't as simple as you present them.

Exactly. This is a problem. I'm sure Godaddy thought of this, and figured it's good for their business because it puts pressure on the brandable marketplaces.

I am starting to use SquadHelp for brandables, names that would not be normally found by keyword searches or someone "thinking up a name". I already have to abide by Squadhelp's rule of making the Afternic price at least 10% higher than at SH. I'll have to see how Squadhelp responds to this and adjusts their commission differential when I sell a SH name at Afternic, but I would assume it will cause me to raise the price at Afternic even further. I'm not going to stop using SH for these types of names--a few hundred out of a few thousand for me.

I assume the brandables will respond to this very soon.

 

[aoxborrow]

IMO the hardest-to-replicate feature of Dan.com is their "domain transfer specialist" escrow process, which handles the tedious task of ensuring newbie buyers get their domains after a sale, whether it is EPP auth code or account push. This is human labor intensive, although @DAN.COM has smartly automated as much of the process as possible. Hopefully the low commission of imported leads (5%) will remain available to API Integrators like Domain.io, Efty, DNWE, without the nameserver restriction. If they drop the Integrator program or raise the fee dramatically it will be a truly sad day for the domain industry.

BUT this is an opportunity for Sedo, SquadHelp, Escrow.com, DomainAgents, Flippa, Brandbucket, DaaZ, et. al to grow their services outside of their walled gardens. We should work together to build out Dan.com's original idea of the Open Domain Distribution Network. If enough domains get syndicated, registrars will pick it up to add to their search results, and even choose to prioritize its results over Afternic if prices and registrar commissions are competitive. The problem is most other companies in the space prefer exclusive listings or fighting for the scraps that Afternic leaves behind rather than building a competitor.

 

[nick3]

@James Iles @LaszloSchenk

I am forwarding all my domains to their corresponding landing page: https://dan.com/buy-domain/EXAMPLE.com

I do this because I want to have control over my DNS and set up catch all email so I can see which companies are potentially interested in the domain based on the e-mails (e-mail leakage) I receive.

It's not possible to control DNS if the nameservers are pointing to Dan. But because I forward the domain to their corresponding landing page it's the same as changing nameservers. But I still have to pay 25% commission because of the new nameserver rules?

 

[aoxborrow]

DaaZ secure ( for offline agreed leads aka import leads ) – 5%

Do you offer an API and support for creating imported escrow transactions?

SquadHelp launched an API that allows managing their "standard listings" and I believe creating escrow transactions, but I can't even find standard listings on their site right now. They have a pretty good thing going with their brandables and advertising, but I bet they'd love to get those names into the search flows of registrars without paying 25% premium.

This should be huge for Escrow.com, their Concierge Service should be the most attractive way to sell domains outside of Afternic, and they also have a huge advantage in brand recognition. If they could make the process faster and less painful, offer more payment options, even increase their fees a little if necessary, they could be bigger player in domain space. Wasn't Dave Diamond working on this?

 

[alcy]

If domain is not pointing to any name servers (null NS). … what’s the % ?

lol I'm sure dan and gd benefit lots from null pointing names so expect a big discount on fee heh

 

[BigTree]

They actually helped me to save money.
From now on I will definitely focus on Escrow.

 

[HotKey]

Only choice we have in these situations that we don't like, is doing things for ourselves (eg, own portfolio with integrated payment options) or a 3rd-party marketplace that caters to investors with some sort of discount plan/club to help offset the high commissions. Similar to what Epik did, like the domainer discount.

Overall though, I would be really careful with just suddenly switching new marketplaces solely based on commissions- Dan's process has proved extremely reliable and easy for both buyer and seller, and we all have seen the headaches caused by cheaper alternatives.

Personally I think this rise is crazy though, why so much?? Business for these people has grown, domaining is not going away, it's not just a couple percentage points but by the tens. Unfortunately, shit only rolls downhill, someone at the top decides they need more to justify whatever, and the snowball grows.

 

[Future Sensors]

someone at the top

Probably one of our fellow NP members

 

[Lox]

GD Dan didn’t solve the problem of a half million + listings by frontrunners . wonder what is going to happen when the legit sellers point DNs to Dan NS… and then start sending 100s of thousands of request for removal-listing.

 

[DaaZ]

IMO the hardest-to-replicate feature of Dan.com is their "domain transfer specialist" escrow process, which handles the tedious task of ensuring newbie buyers get their domains after a sale, whether it is EPP auth code or account push. This is human labor intensive, although @DAN.COM has smartly automated as much of the process as possible. Hopefully the low commission of imported leads (5%) will remain available to API Integrators like Domain.io, Efty, DNWE, without the nameserver restriction. If they drop the Integrator program or raise the fee dramatically it will be a truly sad day for the domain industry.

BUT this is an opportunity for Sedo, SquadHelp, Escrow.com, DomainAgents, Flippa, Brandbucket, DaaZ, et. al to grow their services outside of their walled gardens. We should work together to build out Dan.com's original idea of the Open Domain Distribution Network. If enough domains get syndicated, registrars will pick it up to add to their search results, and even choose to prioritize its results over Afternic if prices and registrar commissions are competitive. The problem is most other companies in the space prefer exclusive listings or fighting for the scraps that Afternic leaves behind rather than building a competitor.

DaaZ is always open for colloboration , only thing we think before agreeing colloboration is - Is the collaboration is going to add any value to "the domainers" or "buyers"? If the answer is Yes - we are open for it.

 

[laur77]

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?

It’s 7% increase is you redirect your domains traffic to them, if not, it would be a 16% increase.

Their business model is based, mainly, on domainers. Our investment is their main asset and their main income funnel.

In this situation my rhetorical question is: do I want to increase, enforced, and after being treated like a stupid (see GD “explanation” that the commission increase is beneficial to me), the value of GoDaddy business by giving them awareness, more business value, etc., with my domains traffic and finally alimenting with more funds this kind of doing business or do I prefer to FT off too and move cards, to determine in the future a similar player to think twice before trying to screw me on my money, like Dan aka GD is trying to do right now?

 

[Rhinnnn]

GD Dan didn’t solve the problem of a half million + listings by frontrunners . wonder what is going to happen when the legit sellers point DNs to Dan NS… and then start sending 100s of thousands of request for removal-listing.

DAN has an automated ownership verification system -- if you add a specific third nameserver or TXT record to your domains and then upload them to DAN, they're automatically moved to your account if someone else already has them listed.

 

[Lox]

DAN has an automated ownership verification system -- if you add a specific third nameserver or TXT record to your domains and then upload them to DAN, they're automatically moved to your account if someone else already has them listed.

Doesn’t work properly… tested

 

[Rhinnnn]

Doesn’t work properly… tested

Weird, it worked every time for me. The propagation of nameserver or TXT record changes might take a while (depending on registrar) so I always wait 15-20 minutes after doing it, and only then add my domains to DAN.

 

[Lox]

Weird, it worked every time for me. The propagation of nameserver or TXT record changes might take a while (depending on registrar) so I always wait 15-20 minutes after doing it, and only then add my domains to DAN.

DNs listed by frontrunners is the problem.

 

[markfromslo]

DAN has an automated ownership verification system -- if you add a specific third nameserver or TXT record to your domains and then upload them to DAN, they're automatically moved to your account if someone else already has them listed.

I use this and it works great. Afternic still requires you to contact them for removal--I've hounded them about simply adding the same NS ownership check at Afternic. Since Afternic and Dan are together now, why isn't Afternic using it too? Oh, maybe they don't have any developers on staff, which seems possible given the state of their website.

And by the way, Dan's verification system is SO MUCH better than Sedo's which requires to to change the nameservers to theirs "for a few days" and then change them back to what you want. With Dan, you simply add a TXT record. And it's instant.

 

[chandldj]

Moved my names to Daaz.com

 

[immmi]

I propose to set up a DomainsDAO, only serve domainers.

 

[alcy]

come on what are u born last nite...just use bodis lander.. with or without ads... yer call... then add lead on dan at 5percent... it's how smart folk did it...and especially now. the dumb ones will pay 25p.

 

[devma]

It's not a problem, we can set up our own server then forward buyers to Escrow or a similar services.

 

[trap3]

Beautifully selective numbers used in the email they sent. (Big Chimp Laugh)
Obviously domainer's IQ and Math skills are considered primitive compared to the super chimps working for GoDaddy.

GoDaddy (imo) are amongst the lowest of the the low.
There is just nothing good about what they have to offer, whatsoever.
I myself have been transferring my domains out to vastly more ethical and user friendly registrars, such as Porkbun and Dynadot.

From a business stand point I get the higher commission charge for NOT having your nameservers pointed at Dan.com, but it would also be fair to consider this blackmail or coercion and excessive.

IMO, anybody paying 25% commission (and a 66.6% higher fee when not using Dan nameservers) to Godaddy/Dan.com, for selling a domain name, would really have to be pushing the realms of justification to its limits. It is an excessively greedy amount, especially considering their turnover.

On the upside, hopefully there will be a massive exodus of users from Dan, and competitors (old and new) will offer alternatives which will benefit all.

 

[NickB]

And by the way, Dan's verification system is SO MUCH better than Sedo's which requires to to change the nameservers to theirs "for a few days" and then change them back to what you want. With Dan, you simply add a TXT record. And it's instant.

I've always found pointing the nameservers to ns1.sedoparking | ns2.sedoparking 15min before listing the domains means they are verified almost immediately

 

[411domains]

This is an alignment of commissions across the GoDaddy aftermarket. You can read more about this move here: https://uniregistry.com/blog/post/godaddy-aftermarket-alignment
or https://news.dan.com/221733-dan-and-godaddy-aftermarket-commission-alignment

Normally I wouldn't ask a question like this, but since the 60K "Old Plan" example appears to include only sales of 5K or less, I feel it's pertinent.

That said, for the sake of absolute clarity, will this "flat rate" commission structure be replacing the tiered commission structure that currently exists?

Flat Rate Parked - 15%
Flat Rate Parked/Brokered/Self Negotiated - 15%
Flat Rate Not Parked - 25%

Edit: What about Partner purchase path sales and Godaddy auction sales?

 

[bmugford]

Is GoDaddy planning on fixing any of their issues with this new found windfall of income, especially on the Afternic side?

For instance just doing a spot check I noticed one domain I have priced @ $30,000 on Afternic using BIN landers instead loads the "may be for sale" lander. Some others work fine.

The domain is priced at Afternic and Dan at the same price. If I search either venue I see it listed for that price.

If I search for the domain on GoDaddy it shows that it is available for $34,999.

I have no idea why the Afternic BIN lander is not loading. I have no idea where the $34,999 price is coming from.

That was only one of a handful of domains I spot checked. I don't have the time or energy to manually check thousands of domains.

However, it seems a bit of a statistical unlikelihood that I would have randomly stumbled on the issue, if there was only one.

I would love to understand what is going on here. @Paul Nicks @James Iles

Brad

 

[boker]

Great question that I hadn't considered - but you won't get the discounted commission if you're not using one of the following nameservers:

• afternic.com
• smartname.com
• uniregistrymarket.link
• dan.com
• undeveloped.com
• internettraffic.com
• cashparking.com

So now, an increase of commission from 9% it's actually a discounted one...that's the math when you work for a greedy company.