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?

 

[Sutruk]

I was using the 100k example. You can use endless different amounts and get endless different outcomes. But with the 100k example, you would get 1k less now.

Come on man and check it again... this is the 3rd time I tell you .... you would get 3,5k less now.

Ah ok.

I see that I don't have the same influence capacity in this forun than @bmugford . Totally understandable

 

[JB Lions]

Nope... check it again...


That's $3,500 more (or $3,500 less for you)

By the way, on the same $100K sale, you would be charged $890 at Escrow.com... vs the $15,000 at Aftenic

Come on man and check it again... this is the 3rd time I tell you .... you would get 3,5k less now.

I see that I don't have the same influence capacity in this forun than @bmugford . Totally understandable

Read again, I edited my reply with both your posts

For me, it's probably going to all even out if sales are equal between direct and distribution network.

More of an issue for those that don't use their landing pages but their distribution network, 25% is high.

 

[silentg]

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

I point my domains to my hosting account and forward them to DAN landing page. I am going to be getting hit with 25% commission if i don't switch to the DAN DNS.

 

[Future Sensors]

It seems like GoDaddy hasn't really thought through all the ways people refer visitors to their landers.

 

[Bob Hawkes]

For me the biggest concern is that commission at Dan goes from 9% (I don't use their integrated with Afternic) to 25% commission for names not pointed at one of Dan, Afternic or Uniregistry.

There are good reasons that we sometimes don't want to use a D, A, U lander for some names.

I don't understand the logic, in terms of their costs for processing, etc., why a name not pointed to their landers should carry a higher commission. I mean I guess if there is logic, it is that when a name sells where lander is pointed, the marketplace just processed it, but they came because of the name, whereas if they find a name from scrolling through the marketplace, it has brought some value. But I am not convinced. Why not give a little bonus - see below.

For those who sell high-value names, the end of the tiered structure at Afternic commissions will be huge hit as well.

On top of the overall business climate right now, and the various renewal price increases, most recently .io and end of this month .net, it is squeezing domain investors even more.

I would have preferred a 15% flat commission for sales on either platform, but capped at some maximum commission so if you sell a million dollar name it is not 15%, with a 1% cashback bonus to the seller if the name had sold directly from a lander on that platform (effectively reducing the commission to 14%). I think that could have been sold as a simpler, and fair (even though existing Dan users would be paying 5 to 6% more.

-Bob

 

[JB Lions]

For me the biggest concern is that commission at Dan goes from 9% (I don't use their integrated with Afternic) to 25% commission for names not pointed at one of Dan, Afternic or Uniregistry.

How are you getting sales at Dan, without Dan landing pages? I don't think too many people go straight to Dan.com for domains. All my Dan sales are Dan landing pages, either Buy Now or Lease.

 

[Mister.Domains]

Just as expected
We've been expecting this since Godaddy bought Dan .
I am seriously considering going back to Sedo .

 

[bmugford]

It seems like GoDaddy hasn't really thought through all the ways people refer visitors to their landers.

I agree. I have many domains priced on Afternic, but many better ones unpriced with Dan landers.

There are people like me, and others, that have many domains and use Dan.com to gather leads and negotiate. These are sales that Afternic was not going to capture otherwise. GoDaddy could be pushing away people like me.

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

Brad

 

[Mister Funsky]

I don't understand the logic, in terms of their costs for processing, etc., why a name not pointed to their landers should carry a higher commission.

They are trying to squeeze everyone else out.

Time for us (domainers) to form our own marketplace. I will bring 2000+ quality domains.

 

[koolishman]

They are trying to squeeze everyone out.

Time for us (domainers) to form our own marketplace. I will bring 2000+ quality domains.

This is the way. We are 1 million members here.

 

[Future Sensors]

They are trying to squeeze everyone out.

Time for us (domainers) to form our own marketplace. I will bring 2000+ quality domains.

There's already a thread for such an initiative:

https://www.namepros.com/threads/it-would-be-cool-if-namepros-can-create-landers-for-us.1277476/

 

[JB Lions]

I agree. I have many domains priced on Afternic, but many better ones unpriced with Dan landers.

There are people like me, and others, that have many domains and use Dan.com to gather leads and negotiate. These are sales that Afternic was not going to capture otherwise. GoDaddy could be pushing away people like me.

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

Brad

Just out curiosity, sales via direct to your domains vs. sales vs. distribution network if enabled for all your domains. Do you think it would be pretty even or heavy in favor of one method.

For me, I guess I'll find out this year but if it's pretty even then end result, sales shouldn't be much difference.

 

[silentg]

25% commision is nail in the coffin for domain.io that some investors were using to capture leads / manage their domains at one spot.

 

[JB Lions]

They are trying to squeeze everyone else out.

Time for us (domainers) to form our own marketplace. I will bring 2000+ quality domains.

Why not just use own landers and an Escrow? As I mentioned I still have Efty and could just switch to Escrow.com links. In the past I tried using my own site but more of hassle, more upkeep.

 

[silentg]

Why not just use own landers and an Escrow? As I mentioned I still have Efty and could just switch to Escrow.com links.

Some buyers prefer to use GoDaddy. The question is will the buyer fork out 25% extra to do transaction at GoDaddy?

 

[JB Lions]

Some buyers prefer to use GoDaddy. The question is will the buyer fork out 25% extra to do transaction at GoDaddy?

Yep. You're paying extra for the convenience, the reach, the name GoDaddy, which helps close sales. That's why I'm using Dan landing pages and plus, the Lease to Own option, which you will get more sales if enacted. You have to factor all that in when you do pricing.

And over the last few years I've moved all my domains to Buy Now instead of Make Offer which also leads to more sales. Lot more work, much easier for Make Offer.

 

[koolishman]

There's already a thread for such an initiative:

https://www.namepros.com/threads/it-would-be-cool-if-namepros-can-create-landers-for-us.1277476/

Hope this gains some serious traction now.

 

[Mister Funsky]

This is the way. We are 1 million members here.

I just posted in @Future Sensors thread, if we paid a fee per name to list, a decent sum of money could be raised. Even .25 (twenty five cents) per name would raise significant capital if some of the larger domain holders participated.

 

[JB Lions]

This is the way. We are 1 million members here.

We are not 1 million members. Maybe, a few thousand. You are 1 million+ account sign ups over the years. That includes bots, people with multiple accounts, people that signed up, looked for 1 day, never came back, people no longer in the business, people that got banned, people that died etc.

Look how many voted in most recent Favorite Registrar Poll -

• Final results
• 699 votes

Not even 1,000

 

[frank-germany]

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

so I'm using an easily switchable redirect link
to send traffic either to DAN Afternic Sedo or whatever

I am not willing to pay 25% commission on my own domain traffic

( not using nameservers of DAN / Afternic )

please comment

 

[Sutruk]

Not to mention the big move, that's increasing from 15% to 25% on their sales through Afternic when you don't have your domains pointed to them.
That's a total monopoly move. Be with my landers or pay 10% more in commission.

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

I really think that with the 10% commission increase if you are using another landing page over their landers, it can collide with the Antitrust Laws.

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.

 

[frank-germany]

Just spent hours going through names and pointing them to dan. I wrongly assumed any changes would have been made effective Jan 1.

I'm done with parking companies that don't pay and 'brokers' from platforms that do nothing. Time for me to launch my own site. The only reason I will keep my relationship with dan active is the 5% that they, as of today, charge for bringing my own lead.

for now that seems the only way we can go

 

[koolishman]

We are not 1 million members. Maybe, a few thousand. You are 1 million+ account sign ups over the years. That includes bots, people with multiple accounts, people that signed up, looked for 1 day, never came back, people no longer in the business, people that died etc.

Look how many voted in most recent Favorite Registrar Poll -

• Final results
• 699 votes

Not even 1,000

Yes, I get it.

But even 3K active members, some with with large portfolios could get good traction and attract non-NP mambers.

 

[Bob Hawkes]

How are you getting sales at Dan, without Dan landing pages?

I agree it is rare, but it does happen. My sales are too few to see any patterns, but in last few months have had a Dan sale where the DNS was not pointed there. I think sometimes the availability of the lease to own at Dan causes some savvy buyers to look around for where else a name is listed. GD branding on Dan have helped the marketplace in recent months.

 

[James Iles]

This 25% is for domains not using any of the nameservers listed on https://www.afternic.com/sales-acceleration

Afternic Fast Transfer (Premium Network) will still be 15% in the new structure, as long as you're using nameservers listed there.

(at least this is my interpretation - @James Iles is this correct?)

Hi @Future Sensors that's correct, it's a 15% commission fee for nameservers ending in:

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

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

@James Iles

In this scenario:

- Domain lander pointed to DAN, using ns1.dan.com and ns2.dan.com nameservers
- Domain is listed both on DAN and Afternic (using separate accounts)
- The domain sells through the (extended) Afternic Premium Network
- What will be the new Afternic commission: 15% or 25%?

Thanks.

Great question. This would be a 15% commission rate as the domain would be pointing to GoDaddy aftermarket nameservers

@James Iles

I need some clarification. I don't use Dan nameservers for security reasons. I don't like giving a second party full control over my domains. History has proven some are catching email etc, which is a big no-no.

Anyway, I use my own dns but redirect directly to my Landers at dan. Would this mean I'm now paying 25% on each and every sale?

Shouldn't I really be paying less as I'm technically bringing dan all leads?

What about leads in negotiation? I'm working on a sale but if that's going to cost me 25% I'm taking it off dan and close it in private.



So when I'm negotiating, update nameservers and afterwards they hit my counter/bin it's 15% instead of 25%?

The changes don't come into effect until Feb 1st, so plenty of time for you to close deals and review your portfolio. I can also confirm you'd get the discounted commission if you're using GoDaddy aftermarket nameservers. I'd be happy to chat privately to get an insight into the points you raised.