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?

 

[bmugford]

I sold some domains with instalment plans at DAN.
I am just curious if DAN will increase their fee from every instalment after Fabruary or they will keep 9% because those transactions were initiated before February?

I fully expect them to honor the original terms that were agreed to.

I have some domains currently under payment plans.

If they try to arbitrarily change the terms of an existing contract, it goes down the path of becoming a contract of adhesion.

Brad

 

[markfromslo]

I sold some domains with instalment plans at DAN.
I am just curious if DAN will increase their fee from every instalment after Fabruary or they will keep 9% because those transactions were initiated before February?

I just turned off installments for all 4,500 of my Dan names. So many are canceled, it's a pain. Simple BIN now, no installment options.

 

[James Iles]

I sold some domains with instalment plans at DAN.
I am just curious if DAN will increase their fee from every instalment after Fabruary or they will keep 9% because those transactions were initiated before February?

Can confirm that only new Lease to Own transactions will be subject to the new rates.

 

[411domains]

Yes. That's the only "drop" they can claim in this price jacking "alignment," from 20% to 15%.

Edit: I just now received the "Commission Model" emails from Afternic & Godaddy auctions.

It would've been nice to have this yesterday!

It's ridiculous that I have ask these questions, but if they had actually thought long and hard about this and spoke human, their notification wouldn't have caused so much confusion.

Yet here we are just over 24 hours later with 9K views and 450 replies totaling 18 pages here at NP...

I almost feel bad for James, who's now working overtime reading & responding to all the comments along with dealing with all the other issues with the platforms.

Although @James Iles confirmed it replaced the previous commission structure, there seemed to be so much focus on nameservers that it created suspicion that the 15% only applies to the landers and not purchase path sales.

Since I direct the majority of my leads to the purchase path, this obviously concerned me.

I have no problem paying a 15% commission. In fact, when they rolled out the tiered commission structure, I rallied for a flat rate 15%, so with the exception of the everything over 30K, this will be a bonus for me.

I'm just trying to get all the facts that were clearly left out in all the notifications, so that there aren't any surprises when it goes into affect. That's all.

No question is a stupid question.

 

[Mister Funsky]

I almost feel bad for James, who's now working overtime reading & responding to all the comments along with dealing with all the other issues with the platforms.

I agree...sometimes the messenger gets the bad end of the stick.

However, more than likely the information about price hikes has been circulating within gddy for a while so it was probably not a surprise to him. Perhaps they let him know well ahead and are compensating him accordingly.

One of the failures in this fiasco is the roll out. All the basic questions being asked here should have been thought out...and somewhere in the plethora of emails we received 'they' should have spelled thing out better...much better.

 

[internext]

they will keep 9% because those transactions were initiated before February

Its a contract

 

[Nuno Casimiro]

This move is a checkmate to all domainers, and domain companies

The biggest affected will be the big companies

Buydomains -> (766k) lose 5% in sales
DomainMarket -> (236k) same
Hugedomains -> (9 million domains ?) Might have an exception.
If they remove the millions of domains from the network, it affects Godaddy's results.

For the brandable market , i think won't have much impact. SH and BB have only ~300k domains and probably don't sell many of them through Godaddy network.
The best move is retire all domains from and lose some sales.

It will be bad for all help services for domainers

I was wrong not to use the Godaddy network to give exposure to my domains.
In the past i tried and didn't sell any. (I am in the brandable space)
Yesterday put 600 domains via Dan with markup, if any sell is great, and pay more 5% from the old 20%

 

[domaindevil]

I am sure that Huge Domains are able to negotiate nice custom deals.

 

[internext]

I have used Dan pretty much exclusively. I have never used Afternic.

I am confused about one aspect of this proposal.

If I add Afternic to my network and make a sale on Dan, my commission is 15%, right? But if the sale is made at Afternic I pay TWO 15% commissions? One commission to Dan because that's where my nameservers are and one commission to Afternic for a total 30% total commission?? Or just 15% because it's just one network??

Please explain how using Dan AND Afternic commissions work. Are there any situations in which you would be expected to pay stacked commissions ie 30%?
@James Iles

 

[markfromslo]

This move is a checkmate to all domainers, and domain companies

The biggest affected will be the big companies

Buydomains -> (766k) lose 5% in sales
DomainMarket -> (236k) same
Hugedomains -> (9 million domains ?) Might have an exception.
If they remove the millions of domains from the network, it affects Godaddy's results.

Huge Domains will get huge discounts. They are already treated favorably, as most who use Godaddy Expired Domains Auctions probably know. They have use of an API that lets them "snipe" names the microsecond after a name auction ends and it goes to $50. A human just cannot beat Huge Domains. If there is no buyer for the name at auction, and Huge Domains wants it, they will get it. period. Completely unfair practice.

 

[bmugford]

I have used Dan pretty much exclusively. I have never used Afternic.

I am confused about one aspect of this proposal.

If I add Afternic to my network and make a sale on Dan, my commission is 15%, right? But if the sale is made at Afternic I pay TWO 15% commissions? One commission to Dan because that's where my nameservers are and one commission to Afternic for a total 30% total commission?? Or just 15% because it's just one network??

Please explain how using Dan AND Afternic commissions work. Are there any situations in which you would be expected to pay stacked commissions ie 30%?

My understanding is if you sell on Dan.com or Afternic, and use Dan or Afternic landers it is 15%. There is only one 15% fee...Don't give GoDaddy any ideas.

Brad

 

[internext]

My understanding is if you sell on Dan.com or Afternic, and use Dan or Afternic landers it is 15%. There is only one 15% fee...Don't give GoDaddy any ideas

Oh, trust me I'm not trying to. I'm referring to using Afternic with its MLS, along with Dan. I read elsewhere comparisons of using DAN and Afternic MLS versus Sedo MLS and Afternic and I thought it indicated commissions would be stacked to 30% using DAN/Afternic. I hope not! 25% is insulting (and painful) enough

I don't think I'm the only one confused by all this.

 

[Rhinnnn]

Oh, trust me I'm not trying to. I'm referring to using Afternic with its MLS, along with Dan.

I don't think I'm the only one confused by all this.

There is no stacked commission.

It's a flat 15% if you have nameservers associated with GoDaddy and your domain sells via their network (regardless of where exactly on their network it sells, or if you have it listed both at DAN and Afternic -- doesn't matter). The only exception here is if you manually import a lead to DAN, then the commission is 5%.

And if a domain sells via GoDaddy's network and you don't have nameservers pointed to them (Afternic, DAN, Uni, etc), then they charge a flat 25% commission.

That's all there is to it.

 

[internext]

There is no stacked commission.

It's a flat 15% if you have nameservers associated with GoDaddy and your domain sells via their network (regardless of where exactly on their network it sells, or if you have it listed both at DAN and Afternic -- doesn't matter).

OK, thank you. So at this point, it makes no sense to not add Afternic and benefit from their MLS from my perspective

Trying to make lemonade

 

[Sutruk]

I use Bodis for nearly all my domains. I now have a strong incentive not to use Bodis. Same for companies like Efty. They have put so much work in make the industry stronger.

This is one way to kill the competition Godaddy!

Also, the 25% for not using their landers feels like a very monopolistic anti-competitive move.

Increasing a 10% of their commission (from 15% to 25%) to their users for not using Afternic landers is intented to kill any form of competition in the domain aftermarket field.

It's "point your domains to my landers or pay 10% more" for the same domain sale (on their network of registrars).

One thing is to increase or decrease your prices, and another very different is to punish your users, your clients, for not using one of your services, and increase the price for them by a 10%.

It really looks quite anti-competitive.
------------------------------------------

https://www.ftc.gov/enforcement/anticompetitive-practices

Anticompetitive Practices​

The FTC takes action to stop and prevent unfair business practices that are likely to reduce competition and lead to higher prices, reduced quality or levels of service, or less innovation. Anticompetitive practices include activities like price fixing, group boycotts, and exclusionary exclusive dealing contracts or trade association rules, and are generally grouped into two types:

• agreements between competitors, also referred to as horizontal conduct
• monopolization, also referred to as single firm conduct

The FTC generally pursues anticompetitive conduct as violations of Section 5 of the Federal Trade Commission Act, which bans “unfair methods of competition” and “unfair or deceptive acts or practices.”

 

[Sperry8]

Not upset. I'm furious LOL.

1. If the domain is sold at Sedo, GoDaddy has nothing to do with all this. You'd better delete the domain from Afternic.

2. Same case.

You only get hit with 25% when the domain sells on the GoDaddy platforms (Afternic/Dan/Uni) and the DNS is set to ns1.sperry8.com/ns2.sperry8.com because you have your own lander/form for inbound inquiries.

I hope it makes sense.

Thank you. I think I understand most of it now. However, re "delete the name from Afternic", let me further ask.... for domains costing less than $5k, if I leave them at Afternic, then it'd be 15% commission, correct? It appears they charge 25% for domains pointing to nameservers elsewhere, but I'm still unclear of any example where this would apply. They have no knowledge of any sale pointed elsewhere (Sedo, Bodis using Escrow, direct sale using escrow, etc.). So I still don't get the 25% part of it, because clearly if they made a point of discussing it, it can happen (and likely often).

 

[Rhinnnn]

Thank you. I think I understand most of it now. However, re "delete the name from Afternic", let me further ask.... for domains costing less than $5k, if I leave them at Afternic, then it'd be 15% commission, correct? It appears they charge 25% for domains pointing to nameservers elsewhere, but I'm still unclear of any example where this would apply. They have no knowledge of any sale pointed elsewhere (Sedo, Bodis using Escrow, direct sale using escrow, etc.). So I still don't get the 25% part of it, because clearly if they made a point of discussing it, it can happen (and likely often).

I see you have domains at BrandBucket. If you've also listed those domains at Afternic and they sell there, this is where the 25% commission applies. As in: You've sold a domain via Afternic while its nameservers were pointed to BrandBucket (thus not to a GoDaddy-controlled entity) so GoDaddy will take a 25% commission.

And if you sell a domain at BrandBucket or at any other place not associated with GoDaddy, then you don't need to worry about any GD commission as they have no business with your sale (even if said domain was also listed at Afternic or DAN).

 

[Ostrados]

I just tested this with mine, and it works for me.

Not working for me.
Did you try Firefox -> New Private Window ?

 

[Ostrados]

Increasing a 10% of their commission (from 15% to 25%) to their users for not using Afternic landers is intented to kill any form of competition in the domain aftermarket field.

It's "point your domains to my landers or pay 10% more" for the same domain sale (on their network of registrars).

One thing is to increase or decrease your prices, and another very different is to punish your users, your clients, for not using one of your services, and increase the price for them by a 10%.

It really looks quite anti-competitive.

It is analogous to getting charged 10% extra at Walmart because you parked your car at Costco.

 

[tonyk2000]

Most IT businesses had (unsurprisingly) increased sales during pandemic. GD is no exception. Now, everything is back to "normal" which may be one of the reasons of recent GD actions.

We the domainers are probably not alone, as GD also has contracts with network partners both for offering fast transfer integration and for offering afternic domains for sale. It may well be that said contracts will be renewed or changed with less favorable terms.

Common sense prompts that both selling and providing fast transfer capabilities should be compensated, from earlier 20% commission (and now either 15% or 25% commission). So, it may well be that soon some registrars will either stop selling afternic domains OR stop providing fast transfer integration, should GD try to change their contract terms. Resultingly, we may be required to unexpectedly transfer domains from one registrar to another (if still using afternic and if fast transfer is needed). If so, what a mess

 

[domainer111]

Most IT businesses had (unsurprisingly) increased sales during pandemic. GD is no exception. Now, everything is back to "normal" which may be one of the reasons of recent GD actions.

We the domainers are probably not alone, as GD also has contracts with network partners both for offering fast transfer integration and for offering afternic domains for sale. It may well be that said contracts will be renewed or changed with less favorable terms.

Common sense prompts that both selling and providing fast transfer capabilities should be compensated, from earlier 20% commission (and now either 15% or 25% commission). So, it may well be that soon some registrars will either stop selling afternic domains OR stop providing fast transfer integration, should GD try to change their contract terms. Resultingly, we may be required to unexpectedly transfer domains from one registrar to another (if still using afternic and if fast transfer is needed). If so, what a mess

Back to normal .. we've had interest rates at low levels since 2008, and before that also. That is now coming to a hurtling end.

 

[Brian L.]

I’m surprised they don’t also offer a percentage discount for domains held at godaddy.

 

[internext]

I’m suprprised they don’t also offer a percentage discount for domains held at godaddy

or charge more for those who don't, more likely!

 

[Acroplex]

Thank you. I think I understand most of it now. However, re "delete the name from Afternic", let me further ask.... for domains costing less than $5k, if I leave them at Afternic, then it'd be 15% commission, correct? It appears they charge 25% for domains pointing to nameservers elsewhere, but I'm still unclear of any example where this would apply. They have no knowledge of any sale pointed elsewhere (Sedo, Bodis using Escrow, direct sale using escrow, etc.). So I still don't get the 25% part of it, because clearly if they made a point of discussing it, it can happen (and likely often).

I don't blame you for being confused, the entire GD release spawned questions it didn't care to address.

If the sale happens on Afternic with the domain parked at GoDaddy branded DNS (Dan/Afternic/Uniregistry) then it's 15%. Otherwise, you end up with a nice 75% of your asking price.

If the sale happens on Sedo, their platform rules apply. Verify with @James Iles

 

[Dane]

or charge more for those who don't, more likely!

Yup