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?

 

[AEProgram]

So what happens to all the names at parking companies that point to an dan etc?

 

[infosec3]

DAN used to be the platform on which I sold the majority of my domains. However, for many months now, I have not received any good news from the platform.

Lately, nearly all messages are related to a domain getting deleted because it expired (my fault, of course) or some other trivial matter.

That’s not DAN’s fault, I know, since the domain market is slow a sales are less frequent, but I am just making the observation that the days for regular good news seem to be gone for me.

Having said that, I don’t necessarily blame DAN or GoDaddy, since they need to do what makes more sense to them from a business standpoint.

 

[Vivere]

One thing:

The old commission structure DAN included in their first table isn’t quite correct (?).

Afternic has (or had) a flat commission rate of 20% for all sales within the $0 - $5k range, but sales above $5k had tiered commission structures that all amounted to less than 20%. So, a $60,000 sale at Afternic wouldn’t have had a 20% commission rate and a payout of $48,000; it would've had a 12.5% commission rate and a payout of $52,500.

This update (if the 15% commission will be a flat rate for all sales) implies increased commission rates for larger sales on Afternic’s side. Or am I missing something?

@Paul Nicks @James Iles @Joe Styler

 

[keim123]

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

LOL

 

[wallet2it]

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

Show attachment 229726


Thoughts?

How about the speed of payouts? Next day payment like before at Dan or becoming slow like afternic?

 

[bmugford]

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

Well, this is what I predicted from day 1.

You can wrap this news in some shiny package, but it is nothing but a turd for customers.

@Paul Nicks @Joe Styler @Michael Cyger

I think GoDaddy is making a massive mistake. You were capturing leads you would not from Afternic, and at a higher commission.

As I said in the past, expecting a customer to handle leads, negotiation, AND pay a higher fee is unreasonable.

Brad

 

[Gabriel360]

Epik would have made off like a bandit if they weren't so...Epik.

 

[Dane]

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

What does this mean? I thought that sales coming from our own leads will still be charged 5% commission, correct? What circumstance would cause this 25% commission?

 

[bmugford]

Dan.com was capturing leads Afternic was not for me, and I am sure many others, especially for unpriced domains.

I guess GoDaddy could not just be happy with 9% on traffic, leads, and negotiation that I handled.

The value proposition for using Dan.com is not nearly as strong for 15%-25% as it was for 9%.

Brad

 

[Constantin S]

One thing:

The old commission structure DAN included in their first table isn’t quite correct (?).

Afternic has (or had) a flat commission rate of 20% for all sales within the $0 - $5k range, but sales above $5k had tiered commission structures that all amounted to less than 20%. So, a $60,000 sale at Afternic wouldn’t have had a 20% commission rate and a payout of $48,000; it would've had a 12.5% commission rate and a payout of $52,500.

This update (if the 15% commission will be a flat rate for all sales) implies increased commission rates for sales above $5k on Afternic’s side. Or am I missing something?

@Paul Nicks @James Iles @Joe Styler

Precisely. For a $60k sale, the Afternic commission right now would be $7500 (not $12.5k like they said), with the new structure that will actually increase to $9000.
I guess GoDaddy really thought we were that stupid to not verify their statements.

 

[keim123]

What does this mean? I thought that sales coming from our own leads will still be charged 5% commission, correct? What circumstance would cause this 25% commission?

link to sell on my domain from bodis redirected to dan. I haven't changed ns and I only sold through you because you were fast, but this way I will direct sales to escrow. We have a portfolio of 5000 domains.

 

[James Iles]

What does this mean? I thought that sales coming from our own leads will still be charged 5% commission, correct? What circumstance would cause this 25% commission?

Hi @Dane, the standard 25% commission rate will be charged when a domain is sold, for example, through Afternic, with the domain name pointing that doesn't point a nameserver ending in one of the following at the point of sale:

• afternic.com
• smartname.com
• uniregistrymarket.link
• dan.com

• undeveloped.com
• internettraffic.com
• cashparking.com

The 5% commission rate you mentioned is for leads that you import to Dan.

 

[Nuno Casimiro]

Bad news!
Sedo will benefit from this situation:
20% in SedoMLS
15% in Sedo Marketplace
10% if point to Sedo.

 

[markfromslo]

I have my names pointed to Dan's nameservers, and listed at both Afternic and Dan. My prices are about 10% lower at Dan, to compensate for the commission differences. Interestingly, even though a buyer can get a 10% lower price at Dan--and I'd think they would have tried keying the URL into their browser to see what comes up and see the Dan lander with the lower price--about 80-90% of my sales are from Afternic. It's never made sense to me.

So now that the commissions are the same, I am wondering why I need to list names at Dan at all. Why should I continue to take the extra time to manage 4,500 names at two platforms instead of one? I have to think about this, but I will likely remove all my names from Dan.

It's unfortunate because Dan is SO MUCH better to use. The user interface, the support and process are so much better. I'd hoped that Afternic would have taken this superior platform and integrated it into Afternic. But it appears they simply want to kill off Afternic. They are taking the lazy approach that dinosaur tech companies use: kill the competition.

I'm happy that the commission at Afternic is now 15%, but not happy that names not pointed to them are 25% because I only this week started placing a few names at Squadhelp, using the Afternic option they have. I will have to reevaluate this, or raise the Afternic prices significantly higher at Afternic. Probably the latter, which will result in fewer Afternic sales.

And as for that 15% commission, it is my belief that this is just a first step to 20% commissions at both Afternic and Dan. That would have been too much to do in one move. The final step will be to shut down Dan and raise Afternic commissions to 20%.

 

[Dane]

The value proposition for using Dan.com is not nearly as strong for 15%-25% as it was for 9%.

I agree. What to do now?

 

[bmugford]

Also, what about the tiered commissions on Afternic? If it is a flat 15% now, that is also GoDaddy just raising rates on higher dollar sales, wrapped in a shiny package like they are actually lowering rates.

Currently on Afternic -

0% ($15 minimum)$0 to $5000$1,000
+15% of amount over $5k$5,001 to $25,000
$4,000 +10% of amount over $25k$25,000 and over

If they are going to a flat 15%, they are actually raising the rate on higher dollar sales.

This move has ruined Dan.com

Brad

 

[Rhinnnn]

Also, what about the tiered commissions on Afternic? If it is a flat 15% now, that is also GoDaddy just raising rates on higher dollar sales, wrapped in a shiny package like they are actually lowering rates.

Currently on Afternic -

0% ($15 minimum)$0 to $5000$1,000
+15% of amount over $5k$5,001 to $25,000
$4,000 +10% of amount over $25k$25,000 and over

If they are going to a flat 15%, they are actually raising the rate on higher dollar sales.

This move has ruined Dan.com

Brad

The current phrasing of the email updates sent by DAN and Afternic does suggest that the tiered commission is going away (by not mentioning it at all).

So it looks like we're about to see 15% commissions for all sales, from $100 to $1,000,000 and beyond. Welp.

 

[November]

Year 2023 - less sales, higher commissions

 

[bmugford]

The current phrasing of the email updates sent by DAN and Afternic does suggest that the tiered commission is going away (by not mentioning it at all).

So it looks like we're about to see 15% commissions for all sales, from $100 to $1,000,000 and beyond. Welp.

So then it looks like GoDaddy.com is screwing the customers from both ends.

Well done guys!!!

Brad

 

[Igor Mironyuk]

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

Show attachment 229726


Thoughts?

You missed 25% commission on sold domains not pointed nameservers to Dan/Afternic/Uniregistry.