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?

 

[internext]

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

Yes. I don't like having to list all my domains at BIN to get a good rate, and there are no payment options.

 

[twiki]

I just had an idea.

I should be building a marketplace, and one day have it acquired.

 

[Future Sensors]

Incidentally, I do indeed think that many domainers will now increase their prices to cover their perceived loss, regardless of whether that is wise or not. It remains to be seen whether this will have the desired effect for GDDY. It is already a slack time and purchasing power is visibly declining. It is complicated to predict, but this day will undoubtedly have all kinds of consequences in the domain market.

 

[twiki]

Can you list on sav not sav domains?

Yes you can.

 

[Rhinnnn]

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?

$2,999 + 7% = $3,209

$1,999 + 7% = $2,139

Buyers are WAY more likely to pull the trigger at $2,999 or $1,999 than at the prices on the right, even if 7% is not that much of an increase.

 

[domainer111]

More buys.

Well... it would be like doubling down! But what the heck, the debt can always be written off...eventually.

 

[Future Sensors]

@James Iles

Does this commission model change also affect the share that Afternic network partners (or Afternic itself) receive on a sale?

 

[Future Sensors]

If a large proportion of domainers now increase their Afternic (or DAN) prices as a result, the domains from GoDaddy's own NameFind portfolio will become more attractive at the same price. Whether and how GoDaddy passes on the commission internally is a whole chapter in itself.

 

[DomainBarracksRob]

Is Dan loading right now for you all? .....hasn't for me last 10 mins

 

[domaindevil]

Is Dan loading right now for you all? .....hasn't for me last 10 mins

No problem for me.

 

[DomainBarracksRob]

No problem for me.

okay may just need to rest my wifi thank you

 

[Vivere]

GoDaddy really tried to package this commission 'alignment’ as an all-around positive for domainers, but that’s just not the case.

They led with the shiny “reduced 15% commission” bit, so at a cursory glance one would see this as a great move. But they conveniently buried the fact that the former tiered commission structure (which was a huge benefit/consideration for higher sales) has now been nixed. They based their before-and-after comparison table on some incorrect rates. And they downplayed the fact that they have now also introduced a higher commission rate (25%) for domains that aren’t pointed to their nameservers.

As it stands, this seems to be the situation for DAN and Afternic users:


DAN:

• Before: Domains using DAN nameservers = 9% commission. After: Domains using DAN nameservers = 15% commission.
• Before: Domains not using DAN nameservers = 9% sales commission. After: (i.) Not using DAN nameservers but using other GoDaddy nameservers = 15% commission (ii.) Not using DAN nameservers or any other GoDaddy nameservers = 25% commission.
• Before: Domains integrated into Afternic DLS via DAN = 20% commission. After: No longer a relevant factor... because "aLiGnMeNt" (and it has done its job).
• Unchanged: Commission for imported leads -- 5%.

Afternic:

• Before: $0 - $5,000 domains using Afternic nameservers = 20% commission. After: $0 - $5,000 domains using Afternic nameservers = 15% commission.
• Before: $5,001 and above domains using Afternic nameservers = Tiered commission. After: $5,001 and above domains using Afternic nameservers = No longer tiered. 15% flat commission. Terrible news for higher sales. Examples: Before, a $60k sale would’ve incurred a 12.5% commission ($7.5k). Now, a $60k sale will incur a 15% commission ($9k). A $100k sale would’ve incurred an 11.5% commission ($11.5k). Now, a $100k sale will incur a 15% commission ($15k). A $250k sale would’ve incurred a 10.6% commission ($26.5k). Now, a $250k sale will incur a 15% commission ($37.5k). On and on. Just obscene.
• Before: $0 - $5,000 domains not using Afternic nameservers = 20% sales commission. After: (i.) not using Afternic nameservers but using DAN / other GoDaddy nameservers = 15% commission, (ii.) not using Afternic nameservers or any other GoDaddy nameservers = 25%.
• Before: $5,001 and above domains not using Afternic nameservers = Tiered commission. After: No longer tiered: (i.) not using Afternic nameservers but using other GoDaddy nameservers = 15% flat commission. Terrible news for higher sales. (ii.) not using Afternic nameservers or any other GoDaddy servers = 25% flat commission. Even more terrible. Examples: Before, a $60k sale would’ve incurred a 12.5% commission ($7.5k). Now, a $60k sale will incur a 25% commission ($15k). A 100k sale would’ve incurred an 11.5% commission ($11.5k). Now, a $100k sale will incur a 25% commission ($25k). A $250k sale would’ve incurred a 10.6% commission ($26.5k). Now, a $250k sale will incur a 25% commission ($62.5k). This is beyond crazy.

The only reduction here seems to be a decrease in commission from 20% to 15% for domains that are (a.) within the $0 - $5,000 range AND (b) using any of GoDaddy’s nameservers.

If your $0 - $5,000 SH or BB premium domains are listed on Afternic, you won’t enjoy said reduction because your premium domains will, by requirement, be pointed to your brandable marketplace’s nameservers.

TL;DR: GoDaddy's revised rates are extremely unfriendly and unfair.

I hope they reconsider this move. At a minimum, the tiered commission system should be brought back.

 

[BrandingGo]

Yes you can.

Can i use marketplace balance funds for new domain reg on Sav?
Thanks

 

[bmugford]

GoDaddy really tried to package this commission 'alignment’ as an all-around positive for domainers, but that’s just not the case.

They led with the shiny “reduced 15% commission” bit, so at a cursory glance one would see this as a great move. But they conveniently buried the fact that the former tiered structure of commissions (which was a huge benefit/consideration for higher sales) has now been nixed. They based their before-and-after comparison table on some incorrect rates. And they downplayed the fact that they have now also introduced a higher commission rate (25%) for domains that aren’t pointed to their nameservers.

As it stands, this seems to be the situation for DAN and Afternic users:


DAN:

• Before: Domains using DAN nameservers = 9% commission. After: Domains using DAN nameservers = 15% commission.
• Before: Domains not using DAN nameservers = 9% sales commission. After: (i.) Not using DAN nameservers but using other GoDaddy nameservers = 15% commission (ii.) Not using DAN nameservers or any other GoDaddy nameservers = 25% commission.
• Before: Domains integrated into Afternic DLS via DAN = 20% commission. After: No longer a relevant factor... because "aLiGnMeNt" (and it has done its job).
• Unchanged: Commission for imported leads -- 5%.

Afternic:

• Before: $0 - $5,000 domains using Afternic nameservers = 20% commission. After: $0 - $5,000 domains using Afternic nameservers = 15% commission.
• Before: $5,001 and above domains using Afternic nameservers = Tiered commission. After: $5,001 and above domains using Afternic nameservers = No longer tiered. 15% flat commission. Terrible news for higher sales. Examples: Before, a $60k sale would’ve incurred a 12.5% commission ($7.5k). Now, a $60k sale will incur a 15% commission ($9k). A $100k sale would’ve incurred an 11.5% commission ($11.5k). Now, a $100k sale will incur a 15% commission ($15k). A $250k sale would’ve incurred a 10.6% commission ($26.5k). Now, a $250k sale will incur a 15% commission ($37.5k). On and on. Just obscene.
• Before: $0 - $5,000 domains not using Afternic nameservers = 20% sales commission. After: (i.) not using Afternic nameservers but using DAN / other GoDaddy nameservers = 15% commission, (ii.) not using Afternic nameservers or any other GoDaddy nameservers = 25%.
• Before: $5,001 and above domains not using Afternic nameservers = Tiered commission. After: No longer tiered: (i.) not using Afternic nameservers but using other GoDaddy nameservers = 15% flat commission. Terrible news for higher sales. (ii.) not using Afternic nameservers or any other GoDaddy servers = 25% flat commission. Even more terrible. Examples: Before, a $60k sale would’ve incurred a 12.5% commission ($7.5k). Now, a $60k sale will incur a 25% commission ($15k). A 100k sale would’ve incurred an 11.5% commission ($11.5k). Now, a $100k sale will incur a 25% commission ($25k). A $250k sale would’ve incurred a 10.6% commission ($26.5k). Now, a $250k sale will incur a 25% commission ($62.5k). This is beyond crazy.

The only reduction here seems to be a decrease in commission from 20% to 15% for domains that are (a.) within the $0 - $5,000 range AND (b) using any of GoDaddy’s nameservers.

If your $0 - $5,000 SH or BB premium domains are listed on Afternic, you won’t enjoy said reduction because your premium domains will, by requirement, be pointed to your brandable marketplace’s nameservers.

TL;DR: GoDaddy's revised rates are extremely unfriendly and unfair.

I hope they reconsider this move. At a minimum, the tiered commission system should be brought back.

Thanks for that. I appreciate the detailed analysis.

Again, it is galling how GoDaddy packaged this.

They put a shiny coat of paint on a turd. At even a cursory glance anyone can spot this is a turd.

Brad

 

[DomainBarracksRob]

okay may just need to rest my wifi thank you

No problem for me.

That worked! Thanks

 

[Ostrados]

Now, a $250k sale will incur a 25% commission ($62.5k). This is beyond crazy.

Yes it is beyond crazy
And I bet that Godaddy will go back to tiered commission
I don't think they are stupid enough to lose top sellers

 

[twiki]

Can i use marketplace balance funds for new domain reg on Sav?
Thanks

Yes you can. BUT. You're offtopic so stop asking beginner things here. Post any more questions in the Sav thread.

 

[GoKaizen]

 

[BrandingGo]

Yes you can. BUT. You're offtopic so stop asking beginner things here. Post any more questions in the Sav thread.

It was not available on October 2022. I suggested this idea to Nick via pm 3 months ago. Thats why i asking. I think this information could be useful for angry Dan customers.

 

[Ostrados]

@James Iles

IF you read the whole thread, then I am sure that you are convinced that Godaddy is doing huge mistake.

We humbly suggest to fix this and do the right thing by:

1- Remove that 25% penalty on domains not pointing to your servers, otherwise this will be considered an unjustified monopolistic behavior, that will not benefit the industry.

2- Go back to tiered Afternic commission, because it is beyond crazy to ask for 25% commission on five or six figure sales, which will be the highest commission ever in the history of domaining industry. And be aware that you will lose your top sellers because of that.

3- Give a proper notice period of at least 90 days (as others suggested) not less that 30 days!!

Be fair with dominers because they contribute to your company growth, and do the fair thing that will be profitable for all parties on the long run.