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?

 

[twiki]

Domainers now sell domains to pay GoDaddy, taxes and renewals.

Investors get crumbs.

Not always true.

If you have a good portfolio, a 15% commision is okay to me. I got 100% yearly ROI and there are other investors doing 5x or 10x in their ROI.

But yes, for many living off what remains it can be a problem. This will affect smaller investors mostly, those with not so good portfolios.

 

[bmugford]

I'm disgusted at this move by Godaddy. We have one set of customers charged at 25%, and another at 15% provided they use one of the Godaddy satellites.

I am as well, and this is coming from a long time GoDaddy supporter.

If a domain sells at Afternic/Dan, it should not matter what the landers are. It should be the same fee.

Charging a 10% higher fee for not using GoDaddy landers is intentionally trying to limit customer options.

Brad

 

[JB Lions]

That depends.

Flesh it out.

 

[twiki]

Flesh it out.

I mean, it depends on portfolio, domain types, prices, types of buyers.... domainer preference.

There's no white and black there (bin vs make offer, lander choice etc).

It's your decision.

Edit: You sounded like making a general statement, but perhaps I am mistaken.

I don't disagree on what you said though, to be more clear. I think these decisions are always food for thought and from time to time, subject to change.

 

[dirk]

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.

Thanks. I will be replacing Dan with my own landers and escrow + imported Dan lead in the meantime.

Appreciate your time actively engaging in this thread.

 

[domainer111]

I am as well, and this is coming from a long time GoDaddy supporter.

If a domain sells at Afternic/Dan, it should not matter what the landers are. It should be the same fee.

Charging a 10% higher fee for not using GoDaddy landers is intentionally trying to limit customer options.

Brad

I don't know anything about trade law, but how can a supermarket charge one customer 75 cent, and another 50 cent? That doesn't seem right. It's actually a 67% markup for those not using the satellites! Somebody should complain to some trade board or something.

 

[twiki]

I don't know anything about trade law, but how can a supermarket charge one customer 75 cent, and another 50 cent? That doesn't seem right. It's actually a 67% markup for those not using the satellites! Somebody should complain to some trade board or something.

Very simple.

Their business their rules.

And this is not a supermarket, I'm afraid. It's not a question of, for example, food security.

Edit: One can complain of course to authorities; but I don't see a possible trade issue here, as in such an action having any kind of result.

Edit2: I see the reason for negatives, and I feel you. But for clarity: Was just pointing out how things work in the real world. Not that it is perfect or things are fair. It's not like we're in a democracy or something (yet another illusion).

 

[Sutruk]

Very simple.

Their business their rules.

And this is not a supermarket, I'm afraid. It's not a question of, for example, food security.

Edit: One can complain of course to authorities; but I don't see a possible trade issue here, as in such an action having any kind of result.

It's very obvious the trade issue here (the fair competition issue. The Monopoly issue here). You have a service (Afternic) where sales happen at their registrar network stream, and you charge a 10% more to users for simply not using their landers, for the same sale on the same platform.

 

[Sutruk]

I'm disgusted at this move by Godaddy. We have one set of customers charged at 25%, and another at 15% provided they use one of the Godaddy satellites.

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!

I don't know anything about trade law, but how can a supermarket charge one customer 75 cent, and another 50 cent? That doesn't seem right. It's actually a 67% markup for those not using the satellites! Somebody should complain to some trade board or something.

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.

 

[enterscope]

Godaddy S U C K S. Plain and simple. End of Story. PERIOD.

They represent everything that is wrong with the domain industry.

 

[Acroplex]

Hi @Juan v2 - useful to clarify that the reduced 15% commission rate applies to more than just afternic.com nameservers. It also applies to:

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

Please don't call this price jacking a "reduced commission rate" - those of us who never wanted to use Afternic but were forced to (e.g. via Uniregistry) or didn't care for the trickle-down tweaks Afternic 2.0 is receiving during the past 3 years, are offended.

GoDaddy didn't even have the decency to give us 30 full days of notice, instead, it sent out emails from its marketplaces with very weak arguments over the benefits to domain investors.

It's a price grab by GoDaddy and I am disappointed by Dan's forced demise. Watch how fast 1.7 million domains leave the DNS when you impose an increase from 9% to 15% AND a 25% taxation of non-GoDaddy DNS!

 

[domainer111]

If only Epik hadn't tarnished their rep there would have been so much opportunity for them right now...

It might be a good opportunity for Efty and Sedo.

Interest rates are far from finished their upward trajectory. I don't know if that affects Godaddy directly, but it's definitely affecting the economic environment.

So at the start of that trajectory, we have already have a 67% increase for many.

So they might be thinking... when is the next increase happening from Godaddy? And so they might turn to Sedo and Efty.

 

[Webtrader]

Funny Story:
in the past i had all my domains by Sedo.com and the fees was 15%.
I switched to Dan.com and told Sedo.com they should change the fees and create the same seller page like Dan.com

In August 2022 Sedo.com changed the fees to 10% and clone the same DAN.com page
https://sedo.com/us/about-us/news-p...le-template-brings-attention-to-your-domains/

Sedo.com Demo Selling Page:
https://sedo.com/search/details/?domain=virtualkey.net&origin=sales_lander_15&language=us
Now i go back to Sedo.com...

 

[tonyk2000]

One of the most affected by recent GD actions is Bodis. First, GD purchased DAN and destroyed Bodis partnership. Now, GD prompts customers to stop using bodis parking with built-in afternic/godaddy (!) forsale banner. Hope Bodis will survive....

 

[Dane]

Time for us (domainers) to form our own marketplace.

Great idea.

 

[domainer111]

One of the most affected by recent GD actions is Bodis. First, GD purchased DAN and destroyed Bodis partnership. Now, GD prompts customers to stop using bodis parking with built-in afternic/godaddy (!) forsale banner. Hope Bodis will survive....

Yes, I use Bodis and this is really bad news. Bodis integration for the for sale strip is so brilliantly designed. But not just Bodis.

Brandable marketplaces like BrandBucket and SquadHelp have been able to list on Godaddy. But now they only get 5% if a name sells on Godaddy. That's life.

 

[bmugford]

One of the most affected by recent GD actions is Bodis. First, GD purchased DAN and destroyed Bodis partnership. Now, GD prompts customers to stop using bodis parking with built-in afternic/godaddy (!) forsale banner. Hope Bodis will survive....

Yes, don't get this move mistaken... The 25% fee is to compel people to use GoDaddy landers.
It is a direct shot at their competition and is trying to limit customer choices.

Brad

 

[domaindevil]

Why not just use SEDO and pay 10% instead? Is there a downside that I don't know of? Their new landers look great.

 

[Bob Hawkes]

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

That seems to be what they (Afternic) have responded on social media. It will be a flat 15%, without tiers, so as you and others have posted, an actual significant increase for higher-priced names. Apparently some Afternic users have received an email outlining changes, but I have not yet.

-Bob

 

[dirk]

It might be a good opportunity for Efty and Sedo.

Interest rates are far from finished their upward trajectory. I don't know if that affects Godaddy directly, but it's definitely affecting the economic environment.

So at the start of that trajectory, we have already have a 67% increase for many.

So they might be thinking... when is the next increase happening from Godaddy? And so they might turn to Sedo and Efty.

Funnily enough I moved 50% of my domains to Sedo past year maintaining the same STR.

I really like the dan backend and their quick payouts but I can live with Sedo if that means it'll save me 15% on every sale.